Bitcoin is showing signs of recovery after buyers stepped in near the $62,700 support zone, pushing BTC back toward $63,600 on Aug. 17.
The cryptocurrency gained around 1.2% on the day, recovering from an intraday low near $62,751 and reaching a high of approximately $63,717.
While the bounce has improved short-term momentum, Bitcoin still faces strong resistance above its current price. ETF outflows, weak daily trend indicators, and large liquidation clusters between $64,000 and $65,500 suggest that bulls still have significant work to do before the broader outlook turns convincingly bullish.
Bitcoin Price Recovers From $62,700 Support
Bitcoin traded near $63,650 after buyers successfully defended the $62,500–$62,700 area.
Sellers had made several attempts to push BTC below this support region, but demand continued to appear near the monthly lows.
The latest recovery also moved Bitcoin above approximately $63,166, which represents the 78.6% Fibonacci retracement of the broader move from $57,803 to $82,864.
Holding above this level helps preserve Bitcoin’s current trading range, but it does not yet confirm that the broader correction has ended.
BTC remains below several important resistance areas created during its August decline.
Bitcoin Still Needs a Stronger Trend Reversal
Bitcoin had traded above $65,000 earlier in August before renewed selling pressure pushed the price lower.
The recovery toward $63,600 is therefore encouraging, but it remains part of a broader consolidation rather than a confirmed bullish reversal.
For the market structure to improve meaningfully, Bitcoin needs to reclaim resistance between approximately $64,000 and $65,500.
A failure to break through these levels could leave BTC vulnerable to another test of the recent support zone.
Improving Risk Sentiment Helps BTC
Bitcoin’s rebound came alongside modest strength in U.S. equity futures.
Nasdaq 100 futures moved higher as technology stocks supported broader risk-market sentiment.
At the same time, easing Treasury yields and a weaker U.S. dollar provided some relief for assets such as Bitcoin.
A softer dollar can support dollar-denominated assets because they become relatively more attractive to global investors.
However, elevated bond yields remain a challenge because higher returns on government debt can draw capital away from speculative and risk-sensitive assets.
4-Hour RSI Shows Stronger Bitcoin Momentum
Bitcoin’s 4-hour chart shows a noticeable improvement in short-term momentum.
The Relative Strength Index climbed to approximately 58.76, after previously trading near 40.
Its signal average remained much lower at around 43.57.
An RSI reading above 50 generally indicates that buying momentum has become stronger than selling momentum.
This supports the idea that Bitcoin’s rebound has some short-term strength behind it.
However, previous recovery attempts during August struggled between approximately $64,500 and $65,500, meaning BTC will need to maintain momentum through multiple trading sessions.
Bitcoin Faces Resistance Near $63,700 and $64,344
The Supertrend indicator also shows that Bitcoin’s reversal is not yet complete.
BTC was trading close to a resistance line around $63,714, while another important technical level sits near $64,344.
A sustained move above both areas would give buyers greater control of the short-term trend.
Breaking $64,344 could also place Bitcoin in a stronger position to challenge the larger liquidity zones near $64,800 and $65,500.
On the other hand, rejection around current resistance could quickly send the price back toward $63,000.
Bitcoin ETF Outflows Remain a Concern
One factor limiting bullish sentiment is continued weakness in U.S. spot Bitcoin exchange-traded funds.
The products recorded approximately $389.71 million in combined net outflows between Aug. 10 and Aug. 14.
Investors withdrew about $144.67 million on Monday, followed by further outflows later in the week.
These withdrawals came after the ETFs recorded their strongest weekly inflows since April.
The reversal suggests that institutional demand has not yet returned consistently.
If ETF outflows continue, Bitcoin may find it more difficult to sustain a breakout above $65,000.
Institutional Demand Has Yet to Stabilize
Spot Bitcoin ETFs have become an important indicator of institutional demand in the United States.
Strong inflows can create additional buying pressure because fund providers generally need to acquire Bitcoin to support investor demand.
Persistent outflows can have the opposite effect.
The latest weekly redemptions do not guarantee further price declines, but they weaken one potential source of demand at a time when Bitcoin is trying to recover from recent losses.
A return to consistent ETF inflows would improve the bullish case.
U.S. Crypto Regulation Adds More Uncertainty
Regulatory expectations are another factor influencing sentiment.
Prediction-market traders recently lowered the probability that the CLARITY Act will become law in 2026.
The reduced expectations followed the U.S. Senate’s failure to advance crypto market-structure legislation before its recess.
While prediction-market probabilities do not directly determine Bitcoin’s value, they provide an indication of how market participants view the likelihood of regulatory progress.
Greater regulatory clarity could support institutional participation, while continued delays may keep some investors cautious.
Bitcoin Liquidation Map Highlights $64,000
Bitcoin’s liquidation heatmap shows significant concentrations of leveraged positions above the current market price.
The nearest important liquidity zone sits around $64,000 to $64,200.
A larger concentration appears around $64,700 to $64,900, with additional liquidity positioned above $65,000.
These levels could become important targets if Bitcoin continues climbing.
Large liquidation zones often attract price because leveraged positions can be forced to close once their liquidation levels are reached.
Short Liquidations Could Push Bitcoin Toward $65,500
If BTC breaks through $64,200, bearish traders holding leveraged short positions could begin facing liquidations.
Those forced closures usually involve buying Bitcoin back into the market.
That additional buying pressure could accelerate a move toward $64,800.
If Bitcoin also clears the $64,700–$64,900 liquidity cluster, the next major test would be around $65,500.
This makes $65,500 one of the most important short-term levels for Bitcoin bulls.
Why $65,500 Matters for Bitcoin
Technical analyst Ted Pillows highlighted $65,500 as the level Bitcoin needs to reclaim before stronger bullish momentum can develop.
A confirmed breakout above this level would suggest that Bitcoin has moved beyond the resistance that has repeatedly limited its recent rebounds.
It could also shift attention toward higher resistance around $67,376.
A daily close above $67,376 would represent a more meaningful improvement in Bitcoin’s market structure.
From there, traders could begin watching the $70,333 region, corresponding to another major Fibonacci level.
Daily Indicators Still Favor Sellers
Despite the short-term rebound, Bitcoin’s daily chart remains less convincing.
The Aroon Down indicator stood around 42.86%, while Aroon Up was at 0%.
This suggests Bitcoin has not recently established a significant new high.
Bear Bull Power also remained negative at approximately -834.98, showing that sellers continue to hold an advantage on the broader timeframe.
These readings help explain why the latest rise should still be viewed cautiously.
Short-term momentum has improved, but the daily trend has not yet confirmed a reversal.
$62,200 Is the Main Downside Liquidity Zone
The liquidation heatmap also shows an important concentration below Bitcoin’s current price.
A large liquidity cluster sits around $62,200 to $62,300.
If buyers fail to defend the $62,700 region, Bitcoin could be drawn toward this lower liquidity zone.
A move below $62,200 could then expose approximately $61,900, which analysts have identified as another major technical threshold.
Additional liquidity appears near $61,500.
Bitcoin Could Retest $60,000 if Support Breaks
The bearish scenario becomes more significant if Bitcoin loses $61,900.
Such a breakdown could open the door toward the $59,000–$60,000 region.
This would erase much of the progress made during the latest rebound and strengthen the broader bearish structure.
The larger daily swing low near $57,800 would then become an important reference point if selling pressure intensified further.
For now, however, buyers continue to defend the $62,500–$62,700 area.
Oil Prices Could Add More Bitcoin Volatility
Macroeconomic and geopolitical risks could also influence BTC in the coming sessions.
Brent crude recently moved above $89 per barrel amid uncertainty surrounding U.S.-Iran negotiations and reduced shipping activity through the Strait of Hormuz.
Higher energy prices can contribute to inflationary pressure.
If oil prices remain elevated, investors may worry that inflation will remain difficult to control.
That could reduce expectations for looser Federal Reserve policy and keep U.S. interest rates elevated.
Higher rates generally create a tougher environment for Bitcoin and other risk assets.
Can Bitcoin Break Above $65,500?
Bitcoin’s latest rebound has successfully protected the $62,500–$62,700 support zone, but the next challenge is significantly harder.
Bulls first need to hold above approximately $63,166 and $63,700.
A move through $64,344 would improve short-term momentum and could push BTC toward the liquidation clusters around $64,800.
The decisive level remains $65,500.
A confirmed breakout above $65,500 would strengthen the bullish case and put $67,376 back in focus.
On the downside, another rejection below $64,000 followed by a loss of $62,700 would increase the risk of a decline toward $62,200 and $61,900.
For now, Bitcoin’s recovery remains intact, but the market still needs a clear break above $65,500 before traders can confidently argue that bulls have regained control.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial or investment advice.
