As Bitcoin (BTC) recovers from its recent drop below the $75,000 support, some market observers outline the key levels that will define the direction of the flagship crypto’s next major move.
Bitcoin Between Two Crucial LevelsOver the weekend, Bitcoin fell roughly 4.5% amid geopolitical tensions, reaching a one-month low of $74,289 before recovering. On Monday, the leading cryptocurrency surged another 1.6%, jumping back above $77,000.
The analyst explained that Bitcoin has been in a consolidation phase since the February crash, moving within a channel throughout this structural reset, allowing the market to build liquidity “before its next definitive move.”
He previously explained that when funding rates climb this high, it signals that the derivatives market is “completely dominated by aggressive buyers,” and “traders are willing to pay a hefty premium just to maintain their long positions” as the predominant market bias remains significantly tilted toward an upcoming expansion.
“This supply consolidation has placed BTC between resistance at $78,258 and support at $75,733,” he stated. Therefore, reclaiming this resistance could trigger a rally to $84,569, while losing the key support could send Bitcoin to $66,898.
More Pain To Come? As BTC has failed to hold the upper boundary of this band as support for two consecutive weeks, Daan affirmed that bulls “need to keep holding (…) to keep this short/mid timeframe momentum in their favor.”
He previously warned that falling below the $75,000-$76,000 area and weekly closes below it would suggest that the April-May recovery rally was “just a big deviation/dead cat bounce.”
This time, BTC has retested this key indicator twice, suggesting that another drop to the “real bottom,” near $50,000, could follow in the coming months, if history repeats.
