Bitcoin may briefly surpass the $65,600 level, prompting breakout traders to enter the market before potentially reversing downwards toward the $60,000-$61,000 range. This move is viewed as a possible liquidity sweep rather than the start of a sustained uptrend toward $68,000-$70,000.
The $65,600 highs remain intact, making them a key short-term target. A short-lived rally above this point could trigger stop losses and attract late buyers, creating the liquidity needed for larger sellers to capitalize. Below, untouched liquidity clusters at approximately $61,807, $61,540, and $61,305 offer targets if Bitcoin fails to hold above $65,600 and retreats. The broader $60,000-$61,000 area may become the focus afterward.
The price structure near recent highs suggests a lower-high scenario may develop. Confirmation of a bearish setup requires rejection at resistance and loss of nearby support. Sustained trading above $65,600 would undermine this outlook and open a path toward higher resistance zones.
Corrective Recovery Faces Strong Resistance Ahead
Bitcoin's rally from late June lows appears corrective, lacking the momentum to reverse the prior downtrend. The recovery, described as an ABC correction with wave A followed by wave B pullback, may still extend with wave C but would remain corrective unless major resistance is broken.
Resistance lies near $66,000, where previous rebounds stalled. Beyond that, key barriers are near $69,000 and $72,000, with a descending trendline adding pressure in this range. A move into $69,000-$72,000 could cap the corrective rally before sellers reemerge. However, a decisive breakout above the trendline and sustained trading past $72,000 would weaken the bearish case.
Until then, the recovery is vulnerable to rejection. Loss of support around $62,500 could shift focus back to $61,000 and the late-June lows near $58,000.
This content is for informational purposes and does not constitute financial advice.
