BTC Faces Make-or-Break Moment at Channel Support

Bitcoin is reacting directly from the lower boundary of its multi-month descending channel after a decisive breakdown from a large flag formation, with price now stabilizing near a structurally significant demand zone highlighted by crypto trader GainMuse.

At the time of writing BTC is trading around $68,400, consolidating after a sharp decline that flushed price into the $60,000–$65,000 region. The broader structure shows Bitcoin respecting a well-defined downward channel that has guided price since late 2025. The recent selloff accelerated once the big flag pattern failed, pushing BTC into the lower channel support where a liquidity sweep occurred before immediate stabilization.

This reaction zone now defines the short-term battleground between continuation and corrective rebound.

Liquidity Grab at Channel Floor

New analysis, shared by crypto trader GainMuse, outlines a clear structural sequence. Bitcoin first traded inside a downward channel, then formed a descending triangle pattern before transitioning into a large flag formation. That flag ultimately broke to the downside, triggering an impulsive move lower.

Price flushed beneath prior support into the lower boundary of the broader channel, marked as a liquidity grab. The immediate bounce from that level suggests demand absorption in the $60,000–$65,000 area. Importantly, this level aligns with the channel’s structural floor, making it technically significant on higher timeframes.

The projected path on the chart shows a potential recovery toward descending resistance if consolidation above the channel base continues. However, the macro trend remains defined by lower highs unless resistance is reclaimed.

Stabilization Around $68K

On the latest price chart is visible how volatility expanded aggressively during the breakdown phase, followed by a contraction as price based near support. The sharp wick beneath $65,000 signals a liquidity sweep before buyers stepped in.

Currently, price is consolidating between roughly $67,000 and $69,000. Momentum has slowed compared to the initial selloff, but BTC remains beneath the descending resistance that caps upside attempts.

Short-term structure shows:

• Higher lows forming off the channel base
• Resistance overhead near recent breakdown levels
• Reduced downside momentum compared to the impulsive drop

The market is pausing at support, not yet reversing.

Key Levels to Watch

Immediate Support:

• $65,000 (liquidity grab low)
• $60,000–$62,000 broader demand zone

Resistance Levels:

• $70,000 psychological level
• $72,000–$75,000 (descending resistance zone)

A sustained hold above $65,000 strengthens the case for a corrective bounce toward descending resistance. Reclaiming $70,000 would add structural confirmation for upside continuation toward the mid-channel region.

Conversely, failure to maintain support at $65,000 would invalidate the stabilization thesis and expose Bitcoin to deeper downside within the established descending channel.

Bitcoin is defending a major structural level, the next directional move will likely be defined by whether the channel floor holds or breaks.

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