Bitcoin continues to face downside risks before a stronger rebound can materialize. Two market analysts suggest that Bitcoin's current structure is weak, and unfinished liquidity areas below the existing price indicate potential declines. Their chart analysis reveals a market oscillating between support targets and repeatedly thwarted resistance, showing no clear signs of a trend reversal.
Bitcoin Liquidity Zones Signal Potential Drop Before Rebound
Analyst Ted noted that Bitcoin has not yet fully cleared the liquidity below its current price. He also observed that liquidity accumulation zones are forming above $75,000. Consequently, the current market setup suggests Bitcoin might move lower in the short term before reversing upwards.
Charts indicate significant liquidity concentration below the current price, particularly in the $66,000 to $69,000 range. Simultaneously, another liquidity accumulation zone has appeared around and above $75,000. This implies that the price could react within these two active areas.
In such market conditions, downside liquidity often acts like a magnet, drawing prices towards it before a reversal. Therefore, if sellers continue to exert pressure, Bitcoin might first touch the lower liquidity zones. Subsequently, if buying power returns, the price could attempt to move towards the liquidity accumulation zone above $75,000.
However, current charts do not provide a specific timeline; they merely reveal areas where liquidation interest is accumulating and potential next price movements. For now, the most crucial information is that Bitcoin remains caught between heavy liquidity below and new liquidity forming above.
Bitcoin's Failed Breakouts Signal Persistent Downside Pressure
According to analysis shared by Daan Crypto Trades, Bitcoin's repeated rejections at key resistance levels further solidify its broader bearish trend structure.
Daan pointed out that persistent failed range breakouts make sustained relief bounces difficult to achieve. Each attempt at an upward breakout has been met with rejection, confirming the continued presence of sellers at resistance. As a result, the price has failed to establish a stronger bullish structure.
Charts illustrate multiple failed breakouts, characterized by lower highs and rejections near horizontal resistance areas. Concurrently, uptrend lines on lower timeframes have been consistently broken. Therefore, short-term strength has not translated into a trend reversal.
Furthermore, Daan mentioned that recent price action has primarily reflected short squeezes followed by subsequent declines. These brief upward movements served as traps but lacked sustainability. Once liquidity above was cleared, the price retreated.
Meanwhile, Bitcoin's price action on lower timeframes remains choppy. This pattern has persisted for approximately six weeks, limiting clear trending moves. As long as this pattern continues, the market is likely to remain volatile, lacking a confirmed trend shift.