Bitcoin is yet to recover after its sharp rejection from the mid-$80K region in May, but the latest price action suggests sellers may be losing momentum. While the broader trend is still bearish across higher timeframes, derivatives data points to improving sentiment as funding rates have recovered into positive territory.

The coming sessions will likely determine whether BTC can extend its rebound toward key resistance or revisit its major demand zone.

Bitcoin Price Analysis: The Daily Chart

On the daily timeframe, Bitcoin continues to trade below both the 100-day and 200-day moving averages, which are currently positioned around the $71K and $74K levels, respectively. Both averages are sloping downward, confirming that the broader market structure remains bearish despite the recent stabilization.

Following the rejection from the 200-day moving average in May and the breakdown below the 100-day moving average in June, BTC experienced a sharp selloff into the $60K support zone, where buyers stepped in aggressively. At the moment, the price has recovered toward the $63K area but remains trapped below the first major resistance at $66k-$67K.

Above that, the $72K to $74K region, reinforced by both moving averages, represents the next significant supply zone and would likely be very difficult to reclaim without stronger bullish momentum. On the downside, the $60K demand zone continues to serve as the most important support. Losing this region could expose the lower blue support area around $54K.

BTC/USDT 4-Hour Chart

The 4-hour chart shows Bitcoin consolidating within a broad descending channel after finding support near the lower boundary around $58K. The rebound has produced a series of higher lows, but the recovery has repeatedly stalled below the channel’s descending resistance.

The asset is currently trading around $63K after another rejection from the $64K to $65K area. This region now represents the first short-term resistance, while the broader supply zone at $66K aligns closely with the upper boundary of the channel. A successful breakout above this confluence would strengthen the case for a deeper recovery toward the higher daily resistance levels.

On the downside, the $62K zone has become the first support following the recent advance. If sellers regain control and push the price below this area, the next important demand zone sits around the same daily levels at $58K-$60K. A breakdown below this zone would likely resume the broader bearish trend and lead to much lower prices in the coming months.

On-Chain Analysis

Bitcoin’s funding rates have shifted back into positive territory after spending an extended period below zero during the recent correction. Historically, negative funding reflects dominant short positioning and pessimistic market sentiment, while positive readings indicate that long positions are once again paying a premium.

The recent move back above zero suggests that traders are gradually rebuilding bullish exposure as the price stabilizes near $63K. Unlike previous periods of excessive optimism, however, funding remains relatively moderate and has not reached the elevated levels typically associated with overheated markets.

This combination could provide room for further upside if spot demand continues to improve. At the same time, the positive shift in funding also means the market has become more vulnerable to long liquidations should Bitcoin lose the $60K support zone. For now, derivatives positioning appears supportive of a continued recovery, but confirmation will likely require a decisive breakout above the $66K to $67K resistance cluster.

Source: CryptoPotato