Bitcoin Nears Critical $60K Support as Volatility Spikes

On the daily timeframe, Bitcoin continues to trade within a well-defined descending channel, consistently forming lower highs and lower lows. The recent sell-off drove the BTC/USDT pair directly into the $60,000 to $63,000 demand zone, where buyers reacted and prevented an immediate continuation lower. However, the broader structure remains bearish, with the price still below the 100-day and 200-day moving averages. Both of these key moving averages are sloping downward and acting as dynamic resistance, reinforcing the current downtrend.

The $75,000 to $80,000 region now stands as a significant supply zone, aligning with the prior breakdown structure and acting as the first major obstacle in case of a recovery. As long as Bitcoin remains capped below the mid-channel resistance and these moving averages, any rebound should be considered corrective rather than a trend reversal. A sustained hold above the $60,000 base is critical; otherwise, renewed selling pressure could push the price toward deeper levels within the descending channel, according to the technical analysis.

On the 4-hour timeframe, Bitcoin is consolidating inside a tightening symmetrical triangle following the sharp rebound from the $60,000 low. This structure reflects a short-term equilibrium after the period of extreme volatility, with the upper boundary acting as dynamic resistance and the ascending lower trendline providing near-term support. The asset is currently compressing near the triangle’s apex, a classic technical signal that a decisive breakout is likely imminent.

The direction of this breakout will be pivotal for near-term price action. A bullish breakout above the triangle could trigger a move toward the $74,000 to $76,000 resistance zone, which aligns with the previous breakdown area and local supply. Conversely, a downside break would expose the $60,000 demand region once again and potentially open the door for a deeper liquidity sweep below this critical support level. This compression phase underscores the heightened sensitivity in the Bitcoin market.

Sentiment analysis reveals a crucial shift in market dynamics. The Estimated Leverage Ratio on Binance has recently declined sharply alongside the price drop, indicating that a significant portion of leveraged positions has been flushed from the market. This deleveraging phase reduces immediate systemic risk and suggests that some of the excess speculative exposure that often fuels violent sell-offs has already been cleared.

Currently, leverage levels are stabilizing at relatively lower readings compared to prior peaks. While this reduces the probability of an aggressive long squeeze in the immediate term, it also means that any new expansion in leverage could amplify the next breakout from the current consolidation. The reset in speculative positioning creates a cleaner slate, but it also means that the next directional move could be fueled by fresh capital entering or exiting leveraged positions.

Overall, Bitcoin is at a technically sensitive confluence. The price is consolidating above a major daily demand zone, the short-term structure is compressing into a triangle, and leverage has reset. The next directional move for BTC will likely be driven by a decisive breakout from the 4-hour triangle, with $60,000 acting as the key downside pivot and the $75,000 region forming the first major upside barrier. The market’s ability to reclaim the $70,000 resistance level will be a critical test of any recovery’s strength.