Bitcoin Bears in Control as $65K Level Wobbles

Key Insights:

• Bitcoin Futures funding stayed negative near cycle lows
• Weekly RSI fell to 25.71, extreme oversold
• Mega whales placed a $4.5 million buy

Bitcoin price steadied near $65,348 on Tuesday as U.S. equities rebounded from a sharp technology-led selloff. The Dow Jones Industrial Average gained 370 points while the S&P 500 rose 0.77% by the closing bell. That recovery reduced immediate pressure on risk assets and slowed Bitcoin’s recent bleed.

The broader Bitcoin price trend, however, remained under strain after months of persistent derivatives-driven selling. Traders monitored whether former support levels could flip back into demand as leverage continued to unwind. The focus shifted toward structural signals rather than short-term relief bounces.

Futures Selling Pressure Intensified

Data shared by market participants showed funding rates across major exchanges remained negative between roughly $62,000 and $68,000, indicating dominant short positioning. In contrast, the prior bottom around $80,000 saw funding rates hold positive for extended periods. This shift occurred because sellers controlled order flow since July 2025, while buy limits mainly absorbed supply instead of lifting price.

Bitcoin cumulative volume delta. Source: X

Current selling pressure reached its highest point in three months as leveraged positions continued to unwind. The futures market had operated with elevated leverage for sixteen months, but that excess steadily declined after the last all-time high. Liquidations forced capitulation trades, and the reset improved long-term leverage health even as spot weakness persisted.

Material Indicators flagged a $4.5 million spot purchase by mega whales during Tuesday’s session. The order exceeded the typical $1 million to $2 million market buys from that cohort. Traders often deploy such liquidity-targeted orders to push through visible sell walls, although the size alone did not confirm reversal.

Technical Indicators Approached Extremes

TradingView data showed Bitcoin’s weekly Relative Strength Index fell to 25.71, a reading not seen since July 2022. Historically, readings below 28 coincided with discounted entry zones during prior cycles. Galaxy head of firmwide research Alex Thorn described the asset as nearing all-time oversold territory, stating the weekly RSI ranked among the weakest prints outside severe bear phases.

Bitcoin price also traded within 9% of its 200-week exponential moving average positioned at $58,855. In earlier cycles, proximity to that long-term trend line marked early stages of bottom formation. However, technical structure remained fragile after a confirmed daily close below the 200-week moving average.

Rekt Capital argued that reclaim attempts could now treat that moving average as resistance. If price failed to recover that threshold, further downside acceleration remained possible. The technical debate therefore centered on whether oversold momentum would override structural breakdown signals.

Macro Signals And Structural Reset

Market commentary from Brian Brookshire suggested bottoming processes rarely resolved quickly. He argued that grinding consolidation often preceded durable reversals, particularly when supply in profit and loss reached equilibrium. Brookshire also referenced mining cost support as a stabilizing variable during extended corrections.

Macro expectations added another layer to Bitcoin price positioning. Traders speculated that future U.S. Federal Reserve rate cuts, potentially guided by Chairman Jerome Powell or prospective chair Kevin Warsh, could shift liquidity conditions. That reaction mirrored earlier cycles when easing expectations improved risk sentiment.

Meanwhile, cumulative volume delta readings indicated persistent seller dominance even as equities recovered. The equity rebound provided short-term breathing room, but derivatives positioning continued to dictate intraday direction. Leverage contraction signaled structural cleanup rather than immediate bullish momentum.

Bitcoin price now faced a technical inflection near $60,000, a level analysts warned could trigger downside expansion toward the low $50,000 region if breached. Conversely, reclaiming former support around $65,000 would improve short-term structure. The next decisive move likely depended on whether derivatives markets flipped from persistent short pressure to neutral positioning.