Bitcoin is currently stuck within a broader correction structure, but price action is beginning to stabilize after defending the $60,000 demand zone. The daily chart remains cautious, as BTC continues to trade below major moving averages and the descending resistance trend line.

This situation brings the cryptocurrency to a critical crossroads; an upward move could extend the recovery toward the ascending supply line, while a failure to do so would maintain the broader downtrend.

Bitcoin Price Analysis: Daily Chart
On the daily timeframe, Bitcoin continues to trade within a well-defined downtrend, with the price remaining below both the 100-day and 200-day moving averages. The 100-day moving average is currently trending downward around $80,000, while the 200-day moving average has risen to approximately $90,000, indicating that the overall trend remains under pressure.

Additionally, Bitcoin is still trading below the descending trend line that has been guiding the correction for months; this suggests that buyers have yet to establish a convincing structural reversal.

However, the bounce from the blue support zone around $60,000 was technically significant. Buyers entered aggressively after a sharp decline below $60,000, and since then, Bitcoin has recovered toward the $68,000 region. The first major resistance remains around $76,000 to $80,000, where previous horizontal support has turned into supply. As long as Bitcoin stays below this zone, any upward movements are likely to be viewed as corrective retracements.

On the 4-hour chart, Bitcoin is consolidating within an ascending channel; this indicates that the recent upward moves from the lows are more of a recovery phase rather than a full bullish reversal. The asset is currently trading near $68,000 after pulling back from the upper boundary of the channel, which is close to the resistance zone of $72,000 to $75,000. This retracement confirms that sellers are still active at higher levels, especially as Bitcoin approaches the channel’s top coinciding with the horizontal supply zone.

Momentum has also noticeably cooled. During the recent rally, the RSI entered overbought territory but has since reversed and moved toward the neutral zone, indicating a diminishing short-term upward momentum.

For buyers, staying above the mid-channel zone and defending the $64,000 to $65,000 area will keep the structure constructive for an upward attempt. Conversely, a break below the channel’s lower boundary could send Bitcoin back toward the $60,000 support zone and potentially lower.

From an on-chain perspective, Bitcoin’s net unrealized profit and loss (NUPL) currently hovers around 0.20, showing a sharp decline from previous peaks. This indicates a significant reset compared to the exuberance seen during cycle highs.

Simply put, the market has wiped out much of the paper profits, reflecting a substantial reduction in speculative excess. While this does not guarantee an immediate trend reversal, it generally creates a healthier environment compared to the overheated conditions near major peaks.

Historically, an NUPL value in this region suggests that the market is no longer in euphoria and is approaching a sentiment reset that could support a medium-term bottom formation. This aligns with Bitcoin’s current price action, which appears to be consolidating after a heavy correction rather than rushing into a new expansion phase.

Therefore, on-chain data indicate that downside risks may be more limited compared to previous peaks, but for a stronger bullish scenario, this improving on-chain environment needs to be confirmed by the price reclaiming higher resistance levels on both daily and 4-hour charts.