Bitcoin's price has stabilized around $68,000 following a defense of the $60,000 demand region, though it remains within a broader corrective structure. The cryptocurrency trades below key moving averages and a descending resistance trendline, placing it at a critical juncture for potential recovery or continued downtrend. On-chain data indicates a reset in market sentiment, potentially limiting downside risks.
Bitcoin continues to navigate a bearish structure on the daily chart, trading below the 100-day moving average near the mid-$80,000 region and the 200-day moving average around the mid-$90,000s. The asset has been guided by a descending trendline during months of correction, with no convincing reversal from buyers yet observed.
A notable reaction occurred from the support zone at $60,000, where buyers intervened after a drop below this level, leading to a rebound toward $68,000. The initial major resistance lies between $76,000 and $80,000, an area where prior support has flipped to supply. Rebounds remain viewed as corrective as long as prices stay below this zone.
Shifting to the 4-hour chart, Bitcoin consolidates within a rising channel, indicative of a recovery phase rather than a full bullish shift. It currently hovers near $68,000 after rejection from the channel's upper boundary around $72,000 to $75,000, where confluence with horizontal supply activated sellers. The RSI indicator entered overbought territory during the recent upmove but has since declined toward neutral levels, signaling waning short-term momentum.
For sustained positivity, prices must hold above the mid-channel and defend $64,000 to $65,000. A breakdown below the channel's lower boundary could revisit $60,000 or lower.
On-chain metrics show the Net Unrealized Profit and Loss (NUPL) at approximately 0.20, a sharp drop from euphoric peaks during cycle highs. This reflects a flush of paper profits and reduced speculative excess, creating a healthier market backdrop. Historically, such NUPL levels suggest a shift away from euphoria toward sentiment reset, supporting base building, though price action requires confirmation of higher resistance breaks for a bullish outlook. Downside risks appear more contained than at recent highs.
