Bitcoin Flashes a Major Signal at $65k That Could Define the Next Leg

Bitcoin is trading around $65,600 after a sharp selloff that flushed weak leverage and then settled into a tighter range. The market is still digesting forced liquidations, overhead supply, and a cooling derivatives footprint that can either set up the next leg higher or drag price lower.

On the short-term structure, BTC’s impulse down created a clear “battle zone” where price keeps getting pinned.

For now, the key question remains on whether this move actually reset risk or pause the downtrend.

What the Chart is Saying Right Now

At current market structure, the market built thick pockets of positioning above current levels. Meaning any push higher has to work through a wall of trapped sellers and late longs trying to exit.

At the same time, the leverage backdrop looks lighter than it did during the drop. Total open interest sits around $44.50B (about 678.45K BTC) and has been fading on the day, even while showing a small uptick.

That’s a healthier profile than a runaway bounce driven by rising leverage, but it also means BTC needs spot follow-through to keep lifting.

Therefore, the path higher is possible, but it’s going to be earned. A bullish continuation becomes more probable if BTC can reclaim the nearest overhead band and then hold it on retests.

However, if it keeps failing at the same ceiling, the market usually drifts back toward the next liquidity pocket below.

BTC/USD Daily Chart

What Needs to Shift for a Real Push

Network activity is still alive, but not euphoric. The latest read for active addresses is around 654,558 daily, which suggests users haven’t disappeared.

However, it’s still not the kind of accelerating participation you typically see right before a sustained breakout.

Exchange flows also matter here. When supply starts leaning back onto exchanges, rallies tend to feel heavy because every bounce meets fresh sell-side activity.

Furthermore, when that pressure eases, BTC gets room to breathe and trend. Right now, the backdrop looks more like a market trying to stabilize than one ready to sprint.

Additionally, in a short-term perspective, the cleanest bullish path needs Bitcoin to stay stable above the local ceiling without a surge in leverage.

On the other hand, for a bearish outlook the price needs to be rejected at the same overhead area together with renewed leverage rebuilt into resistance.

In short, Bitcoin isn’t saved or doomed. However, the next decision point is close, and this is the kind of structure where the market usually moves fast once it finally commits.

More Must-Reads:

• Bitcoin Would Need to Reach $1.7M per BTC to Match Gold’s Market Cap
• Turning Point: Bitcoin Drops Into Rare Oversold Territory Last Seen During the COVID Crash
• Binance Completes $1B Bitcoin Safety Fund, Signaling a Shift in Industry Standards