Bitcoin just completed one of the most aggressive leverage resets of this cycle. Price swept down into the 59K region, cleared overcrowded leveraged longs, and quickly rebounded toward 70K.
This move was not a normal dump. It was a liquidity reset. Such moves often occur when the market needs to clean excess leverage before choosing its next direction.
From a structural perspective, the 59K area is a major higher-timeframe demand zone. It previously acted as the base for the last expansion. The strong reaction from this level and the ability to close back above key support suggest buyers are still defending this zone.
The critical short-term range is now 69K–72K. If Bitcoin can hold above this area and start forming higher lows, the market has a high probability of entering a recovery phase, with upside liquidity near 78K–80K.
Failure to hold above 70K, especially a loss of the 68K–69K region with increasing bearish momentum, would increase the chances of another retest of the recent lows. Strong liquidation bounces often require consolidation before any sustainable trend reversal.
Historically, deep flushes like this are common within bull cycles. They reset sentiment and leverage before continuation. The long-term structure is not fully broken yet, but confirmation is still needed.
At this stage, everything depends on whether Bitcoin can maintain acceptance above the reclaimed 70K level. The reaction here will determine whether the 59K sweep was a medium-term bottom or the beginning of a wider range.
