Bitcoin’s latest pullback may be a long-term bullish signal, as sellers appear to be losing momentum. Despite the broader trend still being bearish across higher timeframes, derivatives data points to improving sentiment, with funding rates recovering into positive territory.
The coming sessions will determine whether Bitcoin can extend its rebound toward key resistance or revisit its major demand zone. On the daily timeframe, Bitcoin continues to trade below both the 100-day and 200-day moving averages, currently positioned around $71K and $74K, respectively. Both averages are sloping downward, confirming the broader market structure remains bearish.
Key Resistance Levels
Above the current price, the $72K to $74K region, reinforced by both moving averages, represents the next significant supply zone. On the downside, the $60K demand zone continues to serve as the most important support, with the lower blue support area around $54K exposed if this region is lost.
Short-Term Outlook
The 4-hour chart shows Bitcoin consolidating within a broad descending channel after finding support near the lower boundary around $58K. A successful breakout above the $66K resistance would strengthen the case for a deeper recovery toward the higher daily resistance levels.
Funding Rates
Bitcoin’s funding rates have shifted back into positive territory, suggesting traders are gradually rebuilding bullish exposure as the price stabilizes near $63K. This combination could provide room for further upside if spot demand continues to improve, but also means the market has become more vulnerable to long liquidations should Bitcoin lose the $60K support zone.
Conclusion
Derivatives positioning appears supportive of a continued recovery, but confirmation will likely require a decisive breakout above the $66K to $67K resistance cluster. For now, the positive shift in funding rates and the stabilization of the price near $63K suggest that the market may be turning bullish, but the broader trend remains bearish, and a breakdown below the $60K support zone could lead to much lower prices in the coming months.
Based on reporting from crypto.news.
