Bitcoin Holds Key Support as Macro Headwinds Test Bullish Momentum
Bitcoin (BTC) began the week on a strong note, but that upward trajectory encountered a significant hurdle on Wednesday. The leading cryptocurrency saw a 3.4% correction, falling to $70,900. This move mirrored a broader sell-off across U.S. stock markets, triggered by a hotter-than-expected economic report.
The U.S. Producer Price Index (PPI) for final demand came in at 0.7% month-over-month, surpassing forecasts and stoking concerns about persistent inflationary pressures. While such macro data often dampens risk appetite, Bitcoin’s recovery above $72,000 following the release of Federal Reserve minutes suggests underlying spot market strength. The Fed’s decision to hold interest rates steady was widely anticipated, but the confluence of volatile oil prices, equity market turbulence, and heightened geopolitical tensions from the recent U.S.-Israel-Iran conflict kept traders broadly cautious.
A Technical Look at Critical Support Levels
From a chart analysis perspective, Bitcoin’s four-hour timeframe maintains a constructive “higher low” pattern, preserving the short-term uptrend. The price continues to trade above both the 100-period and 200-period exponential moving averages (EMAs), which are serving as dynamic support levels. This alignment of moving averages below the price is a classic technical signal of an ongoing bullish trend.
BTC/USDT four-hour chart. Source: Cointelegraph/TradingView
The most immediate focus for bulls is defending a key liquidity zone between approximately $70,250 and $71,275. This range represents internal liquidity built during Monday’s breakout and is a classic area where market orders may cluster. A failure to hold this zone could see price target the next significant liquidity pocket near $68,900, which aligns with a minor order block in the $68,300 to $69,100 region. Maintaining support above $71,000 keeps the lower-timeframe trend structurally intact, with the pattern of higher lows indicating sustained buying interest on dips.
On-Chain Data Reveals a Tug-of-War Between Sellers and Buyers
On-chain metrics provide a nuanced view of the recent selling pressure. Crypto analyst Darkfost noted that as Bitcoin approached $75,000, over 48,000 BTC held by short-term holders (STHs) in profit was moved to exchanges in a single day. This activity highlights a clear inclination among some market participants to realize gains on rallies, treating recoveries as exit opportunities.
However, this selling appears to have been met with consistent demand. Data from CoinGlass illustrates how passive buy orders were actively filled during the descent from $74,000 down to $71,000. This pattern of bid absorption—where buying power steps in to soak up sell orders—has been observed repeatedly over the past two weeks and has often preceded short-term price recoveries.
Bitcoin order book liquidity delta chart. Source: CoinGlass
Historical Context: The Fed Meeting Question
Market analyst Sherlock pointed out a notable historical trend: since June 2025, Bitcoin has declined in the immediate aftermath of each of the last six Federal Open Market Committee (FOMC) meetings. This occurred regardless of whether the Fed hiked, paused, or cut rates, suggesting the events themselves—with their accompanying press conferences and updated economic projections—often act as a catalyst for volatility and a temporary risk-off sentiment.
With the market having fully priced in a “higher for longer” rate stance and another pause, traders are now closely watching how BTC reacts around current liquidity clusters, particularly the critical $71,000 support zone. The post-meeting reaction could set the短期 tone for the coming weeks.
FOMC meets vs BTC price analysis. Source: Sherlock/X
The interplay between macro-driven sell-offs, on-chain profit-taking by short-term holders, and the steadfast absorption of that selling near key support levels paints a picture of a market testing its resilience. The defense of the $70,250–$71,275 range will be a decisive factor in determining if the bullish structure remains intact.
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