Bitcoin’s (BTCBTC’s bullish week-long start came to an abrupt halt Wednesday as it dropped by 3.4%, to $70,000, along with a general selloff of US shares.
A correction was made. hotter-than-expected Producer Price Index report was higher by 0.7% than 3.4% on an annual basis. Data shows that despite the selling of BTC, the spot market is still in demand. Buyers are stepping up to absorb this pressure. Bitcoin has reclaimed $72,000 since Federal Reserve minutes revealed their decision to keep interest rates the same.
The market was on edge as traders were concerned about the recent US-Israeli war and the volatility of the equity and oil markets.
The Bitcoin bulls must defend the current price level
Bitcoin displays a pattern of higher lows on the chart for four hours, maintaining the uptrend in the short term. Price action remains above the exponential moving averages of 100 and 200 periods, which act as dynamic supports.
When aligned beneath the price, these moving averages show the direction of the trend when they track prices.
After today’s selling, the confluence could allow BTC prices to stabilise near $71,000.
BTC’s technical position requires it to hold the 70,250-71,275 dollar range. This is the level of internal liquidity that BTC reached during the Monday breakout.
This zone is the area where previous orders have been filled. It may be that this will attract a liquidation sweep once again.
If you lose this area, the next liquid pocket is near $68,900. The level corresponds to a small block of orders between $68,300-$69,100 where the prior demand briefly abated selling pressure.
BTC is structurally bullish if these levels can be maintained. Higher lows are a sign of continued demand when BTC dips.
Related: Bitcoin tests fresh decoupling trade as tech correlation drops to 2018 lows
Bitcoin Profit-Taking meets Bid Absorption Below $74,000
Before today’s correction Bitcoin data onchain showed that short-term investors (STHs), had been increasing their sell-side activities on Tuesday. Crypto analyst DarkfostOver 48,000 BTC worth of profit was transferred to the exchanges on a single trading day, as the price neared $75,000. The buyers were still locking in profits, and treating price increases as an exit opportunity.
At the same, CoinGlass data The drop from $74,000 to $71,000 was accompanied by passive bids. In the last two weeks similar patterns of absorption have occurred before short-term improvements, showing consistent demand.
BTC’s reactions to previous Federal Reserve Meetings also added insights. Market Analyst Sherlock Since June 2025, Bitcoin’s price has fallen after every meeting of the Federal Open Market Committee since that date, regardless of direction of rates.
The markets are pricing another interest rate hold. Traders’ attention will likely shift towards how Bitcoin reacts to current liquidity clusters.
Related: Bhutan offloads an additional $72.3M Bitcoin amid market downturn
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Source: cointelegraph.com
