Bitcoin Attempts Stabilization After Capitulation Wick—Can $70K Be Reclaimed?

Bitcoin is attempting to stabilize after a sharp liquidation-driven wick that briefly pushed the price toward the $60K region earlier this month. The daily structure still remains uncertain, but early signs of momentum stabilization are emerging as BTC price trades near $65,600, up roughly 2.4% over the past 24 hours.

However, the broader trend still reflects a series of lower highs and lower lows. Bulls have not reclaimed structural resistance yet. The real test lies ahead near the $70K–$72K supply zone.

Why Bitcoin Price Is Stabilizing Now

The recent bounce appears to be a reaction from a well-defined demand zone between $61K and $63K. This area absorbed heavy selling pressure and triggered short covering. Derivatives positioning has cooled, and funding rates are hovering near neutral to slightly positive. No extreme long imbalance is visible, and the open interest is stabilising after the earlier flush.

This suggests forced liquidation has already occurred. But stabilization is not reversal.

Technical Structure: Key Levels to Watch

Level	Significance
$72,000	Major supply zone
$70,000	Immediate resistance
$66,500	Minor breakout trigger
$63,000	Range midpoint
$61,000 to $62,000	Strong demand zone
$58,000	Breakdown acceleration level

RSI and Momentum Outlook

Bitcoin is currently trapped mid-range between a crucial resistance and support zone. The latest rebound from the support range between $62,000 and $63,000 has attracted some liquidity. However, the bulls have failed to secure $65,600, which raises some concerns as the resistance zone between $70,400 and $71,500 currently remains out of reach. A decisive move is required to define direction.

The daily RSI is hovering near the 35–40 region after previously dipping close to oversold territory. While momentum is curling upward, RSI remains below 50. That keeps broader trend bias bearish.

For a sustained recovery attempt, RSI must reclaim 50, and the BTC price must close above $67K on strong volume. Until then, rallies remain vulnerable.

Derivatives Insight: Positioning Is Neutral

The Open Interest witnessed a major pullback since the start of the month, but soon after reaching the lower range, the levels froze between $40 billion and $45 billion, preventing further drop. On the other hand, the funding rates have turned slightly positive in the past few hours, keeping the bullish hopes alive. 

Funding rate currently sits slightly positive, indicating no aggressive long buildup. This reduces immediate squeeze risk but also shows a lack of strong bullish conviction. If open interest expands alongside a breakout above $67K, momentum could accelerate toward the supply cluster near $70K–$72K. If OI rises while price stalls, that increases breakdown probability.

Here’s What to Watch Next: Two Scenarios Ahead

Bullish Scenario: If the BTC price reclaims $66,500 convincingly and secures a daily close above $67,000, then upside targets emerge:

• $70,000 initial resistance
• $72,000 major supply
• Break above $72,000 opens a path toward $78K and potentially $86,000.

However, momentum confirmation is required with the RSI rising above 50.

Bearish Scenario: If the BTC price loses the $61,000 support, which is the critical one, then downside risk accelerates toward, 

• $58,000 liquidity pocket
• Below $58K opens macro demand near $52,000
• An extended breakdown may test $48,000

In the meantime, the bears have begun to offer a strong upward pressure; therefore, it would be interesting to watch how things will unfold hereafter. Whether the Bitcoin (BTC) price secures a daily close within the bullish range or slips back to the bearish range is the prime focus right now!