Bitcoin (BTC) traders have placed new buy orders near $70,000 as the price approaches a key liquidity zone. Order book data shows over $500 million in supply liquidity between $72,000 and $70,000, creating a demand zone that could shape BTC’s next leg.
BTC Buy Offers Form Key Support Zone
Data from CoinGlass shows that dip buyers placed 6,235 BTC in supply liquidity between $72,000 and $70,000. At current prices, the buy orders are worth approximately $443 million.
The largest cluster is just above $70,000, where buyers are positioned to absorb the current selling pressure. Bid liquidity refers to pending limit buy orders below the market price. When price trades in these orders, it can slow the decline and trigger a strong rebound if demand absorbs the available BTC supply.
BTC/USD 1 day chart, buy liquidity analysis. Source: Tableau Velo
Below $70,000, the next notable pocket of demand is at $68,505, where traders placed an additional 1,012 BTC worth around $69 million. Outside of this level, the order book thins considerably, with few bids visible below $68,500.
Meanwhile, liquidation heatmap data shows that about $2 billion in cumulative long positions are at risk near $70,000, compared to more than $5 billion in short positions around $78,000. Once BTC reaches the supply group near $70,000, the larger liquidity pool could trigger a strong rebound towards the overhead liquidation zones.
BTC Clearance Card. Source: CoinGlass
Related: Bitcoin Falls From Global Top 10 Assets As Market Cap Drops Below $1.5 Trillion
RSI hits three-month low as BTC daily trend turns bearish
Bitcoin’s daily trend turned bearish after losing support at $74,800, confirming a trend of lower highs and lower lows. The price is trading within a descending channel and is currently testing support near the lower boundary between $72,000 and $73,000.
The relative strength index (RSI) fell to around 33, its lowest level since February 24. Momentum has remained below the neutral 50 level throughout the recent decline, suggesting that sellers are still in control of the near-term price action.
BTC/USD, one day chart. Source: Cointelegraph/TradingView
Ardi, cryptocurrency trader describe a similar view. The analyst said that the $74,500-$75,500 region is now acting as resistance on multiple time frames. A rejection from this area could maintain focus on the $71,500 region, while a move through channel resistance near $76,000 could challenge the ongoing downtrend.
Options markets show investors are also preparing for a move towards $70,000. According to Glass knottraders spent nearly $10 million on puts with a strike of $70,000 during the recent decline.
The value of put options increases when prices fall, making them a common hedge against downside risk. Recent flows show some easing of this demand for protection as traders lock in profits, although the concentration of hedging activity shows how closely the market is watching the $70,000 level.
Analysis of the $70,000 BTC options market. Source: Glassnode/X
Related: Top Bitcoin Holders Stop Buying as Demand Slows: CryptoQuant
