Bitcoin Holds $66K as Liquidity Builds for the Next Major Move

In Brief

• Bitcoin is consolidating near $66K after a liquidation-driven move lower.
• Support sits near $65K while resistance remains clustered between $68K and $70K.
• Short-term direction depends on whether BTC reclaims overhead supply or loses structural support.

Bitcoin is trading near $66k after a sharp liquidation-driven move lower that flushed leverage across major derivatives venues. The recent drop pushed price briefly toward the $65K region before stabilizing, with total 24-hour liquidations exceeding $220 million.

Despite the volatility, BTC remains structurally above the broader Q4 breakout range. However, short-term momentum has weakened following the breakdown from the $68K–$70K supply zone.

With open interest near $44 billion and exchange positioning still elevated, the market now sits at a key inflection point between continuation and stabilization.

Technicals Show Compression Near $65K Support

From a technical perspective, Bitcoin rejected the upper resistance band near $68,000 – $69,000, an area that previously acted as local distribution.

Therefore, the breakdown led to a fall that tapped liquidity clustered below $66,000. Visible on the liquidation heatmap as concentrated leverage pockets.

Moreover, the price is now consolidating just above a short-term support shelf between $64,800 and $65,500.

This region aligns with prior consolidation structure and a visible liquidity pocket that was partially cleared during the flush.

Importantly, if buyers defend this zone, it may establish a higher low within the broader uptrend structure that began earlier in the quarter.

Participation has contracted slightly, and volume normalized after the spike during the liquidation event. Additionally, open interest remains elevated but has rotated modestly, suggesting leveraged excess was reduced.

On-chain activity shows steady active address counts relative to recent months, indicating no broad network contraction.

Above the current price, resistance remains concentrated between $67,800 and $69,500. The same region where a prior breakdown happened, and with overhead liquidity still clustered.

BTC/USD Daily Chart

Short-Term Outlook: Reclaim or Extension Lower?

On the positive side, holding the $65K region could allow BTC to rebuild structure and attempt a reclaim of $68K.

Indeed, a decisive move above that level would likely target the $70K – $71K liquidity band, where substantial leverage is positioned.

As a result, reclaiming that zone would signal absorption of recent selling pressure and restore short-term bullish momentum.

However, a sustained break below $64,800 opens a path toward $62K – $63K, where the next meaningful liquidity cluster and structural support sit.

Also, a deeper move into that zone would likely coincide with another wave of long liquidations and further open interest compression.

Below $62K, the broader trend would begin to weaken structurally on higher timeframes.

As of today, Bitcoin is compressing between support near $65K and resistance near $68K. With derivatives positioning still playing a dominant role in short-term volatility.