Bitcoin settled near $73,000 after a three-day decline, but bearish chart signals suggest the correction may not be over.
summary
- Bitcoin settled near $73,000 after a three-day sell-off driven by geopolitical tensions related to Iran, large outflows from ETFs, and leveraged liquidations.
- Bearish technical indicators, including a rounded top pattern, a MACD crossover, and weak weekly momentum, indicate further downside risks persist.
- Traders are closely monitoring support near $72,500, while easing tensions between the US and Iran and a possible extension of the ceasefire helped calm market sentiment.
According to data from crypto.news, Bitcoin (Bitcoin) The price was trading around $73,200 at press time, where it has recovered modestly after briefly falling toward the $72,600 area on May 28. The decline erased more than 10% from Bitcoin’s May peak near $81,000 and came as investors rushed to exit risky assets amid fears of a broader conflict in the Middle East and renewed concerns about the global economy.
Sentiment improved slightly on Friday after that Reports He pointed out that American and Iranian negotiators are working to reach a memorandum of understanding that could extend the ceasefire for 60 days and reopen shipping routes through the Strait of Hormuz. This development helped stabilize oil prices and reduce some of the panic selling that affected cryptocurrency markets throughout the week.
The geopolitical shock arrived when US Bitcoin ETFs recorded one of the biggest drawdowns of the year. more than $733 million worth of products exited On May 27 alone, BlackRock’s IBIT reportedly represented more than $500 million of the total. These redemptions force ETF issuers to sell their underlying Bitcoin holdings, adding direct supply in the spot market during periods of weak demand.
Additional concerns arose after series moderators noticed Michael Saylor’s strategy transfer Over $30 Million in Bitcoin to Coinbase.
While the company has not announced any intention to sell its holdings, the deal has sparked speculation across social media about whether the largest bitcoin holder could be preparing to reduce exposure. The transfer also reignited debate over the strategy’s long-term commitment to accumulating bitcoin and holding it indefinitely.
At the same time, macroeconomic conditions have become less supportive of speculative assets. The latest US CPI and Producer Price Index reports came in above expectations, reinforcing concerns that inflation remains well above the Fed’s target. Futures markets sharply lowered expectations for interest rate cuts this year, while Treasury yields remained high and the US dollar gained strength against major currencies.
Adding to the pressure are analysts at JP Morgan He said Both Bitcoin and gold have recently lost momentum as preferred macro hedges. According to the bank, easing tensions in the Middle East and moderating inflation fears led to capital outflows from what it described as “currency devaluation deals.”
ETF products linked to both assets have seen notable withdrawals over the past two weeks, while institutional participation in CME futures has weakened.
Has Bitcoin’s technical structure turned decisively bearish?
Bitcoin’s daily chart shows a deteriorating trend structure after repeated failure near the $80,000 resistance area. The asset has now fallen below the 50-day SMA and remains firm below the daily Supertrend resistance near $79,000.
A round top formation has emerged on the daily time frame, as the price created a series of lower highs after a rejection from the $81,000 area earlier this month. The structure resembles a distribution phase rather than a healthy consolidation, especially since each recovery attempt attracts sellers before Bitcoin can regain key resistance levels.
Momentum indicators are also in favor of bears. The daily MACD has completed a bearish crossover, with the signal line remaining above the MACD line while the histogram bars continue to expand into negative territory. Such setups are often accompanied by extended corrective phases rather than immediate trend reversals.
The weekly chart offers little encouragement to bulls. Bitcoin fell back below the key horizontal support area near $73,000 which had previously served as a breakout level. A weekly close below that area would increase the likelihood of a move towards the February lows in the mid-$60K range.
The Aroon Up is down around 7.14%, while the Aroon Down is near 78.57%, showing that bearish momentum is currently dominating the higher time frame trend. The weekly RSI remains below the signal line near 42, indicating that buyers have not regained control yet.
Financial derivatives markets represent another challenge. CoinGlass liquidation data shows that large leverage pools are concentrated around $72,000 and $71,500, with a particularly large liquidity pocket near $72,200. If Bitcoin loses the $72,500 support area, forced liquidations could accelerate downward momentum towards those levels.
At the same time, the heat map reveals a heavy concentration of short liquidation between $74,500 and $76,000. Such combinations often attract short-term price movements as market makers seek liquidity before the prevailing trend resumes.
Commenting on the current setup, cryptocurrency analyst Lennart Snyder noted that Bitcoin may see a temporary rally despite maintaining a general bearish outlook.
The analyst identified the previous day’s high of $74,500 as the next potential liquidity target, suggesting the level could be swept before sellers attempt to move back lower.
According to Snyder, a recovery in the $74,500-$75,600 area could attract buy-side liquidity before sellers try to fall again. The analyst identified the previous week’s high near $78,200 as the most attractive area for bearish positions after the previous week’s low had already been swept.
“For this week, the most extreme point for shorts is as close to 78.2K PWH since taking PWL. Everything below 78.2K could offer very nice shorts in the retest.”
In a separate price forecast, analysts at Crypto World warned that Bitcoin is approaching a critical support area near $72,000, which they described as the last major support level before a potential decline towards the lows seen earlier in the year so far.
Looking at the four-hour chart, analysts note that Bitcoin continues to form lower highs and lower lows, a structure that usually indicates sustained downward momentum. They expect the cryptocurrency to decline towards the $71,000 support area before any meaningful bounce occurs.
The analysts added that Bitcoin should reclaim the resistance levels at $74,500, $75,000, and $78,000 to negate the current downtrend and improve the prospects for a sustainable recovery.
What could invalidate the bearish hypothesis?
The immediate bullish catalyst remains the evolving geopolitical situation. Any formal agreement to extend the US-Iran ceasefire and ensure unrestricted shipping through the Strait of Hormuz is likely to reduce uncertainty in the energy market and improve risk appetite in global markets.
ETF flows also deserve close attention. Bitcoin’s recent decline coincided with some of the largest institutional drawdowns of 2026. A return to sustained inflows would remove a major source of selling pressure and could help stabilize Bitcoin’s price above current support levels.
From a technical perspective, Bitcoin must reclaim the daily Supertrend resistance near $79,000 to negate the current bearish structure. Such a move would take the asset back above the recent breakdown zone and increase the likelihood of a retest of the $81,000-$82,000 area.
However, failure to hold $72,500 could expose Bitcoin to another wave of liquidation. Below this level, the next major support areas appear near $72,200, $71,500, and $68,000, with the weekly chart indicating a deeper correction towards the mid-$60,000 region if selling pressures intensify.
Currently, Bitcoin remains stuck between improving geopolitical headlines and a weak technical backdrop. Whether buyers can reclaim the $74,500-$76,000 liquidity area over the coming sessions may determine whether the current pause develops into a recovery rally or just a brief pause before another decline.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
