The Bitcoin (BTC) price entered one of its most critical price zones after a sharp crash pushed the asset back to the $60,000 support range. The latest sell-off wiped out key mid-level demand, raising concerns that the market may be entering a deeper corrective phase. The price fell by 3.80%, while the volume increased slightly by almost 10% and rose above $33 billion.
However, despite the bearish pressure, liquidation data and price structure suggest that a short-term pullback may still be in play. The question now is whether Bitcoin is preparing for a true recovery or simply a dead cat bouncing before another leg lower.
Bitcoin Price Analysis: BTC Tests Final Support Zone
The daily chart shows Bitcoin losing its major demand zone between $65,500 and $67,000, a region that has acted as strong support for months. This collapse shifted short-term momentum firmly in favor of the bears. Price has now fallen into the lower support block near $59,500 to $60,500, marking the final major defense before deeper downside opens.
At the same time, Bitcoin remains below its VWAP, which currently acts as dynamic resistance near $63,000. This suggests that sellers continue to control the broader trend, while any recovery attempt could face immediate pressure.
Momentum indicators also remain weak, although the MACD is starting to flatten, a sign that selling momentum may be slowing. Additionally, the levels are headed for a bearish crossover that will validate the bearish trajectory.
Liquidation chart shows a potential short squeeze
The Bitcoin Liquidation Heatmap adds another important layer to the setup. Current price action sits directly below a large group of short liquidations between $61,500 and $66,000, meaning a bounce from current levels could trigger forced short closes and push BTC higher in the near term.
This sets the stage for what traders often call a “dead cat bounce” – a temporary recovery driven by liquidity rather than strong bullish conviction. If Bitcoin moves into this zone, volatility can rise sharply.
Key price levels to watch
The most important support remains between $59,500 and $60,500, which is the critical support. If bulls defend this level, BTC may attempt a relief rally to the following:
However, the strongest resistance remains between $63,000 and $65,500, where VWAP and previous demand now overlap. If Bitcoin fails to reclaim this region, the market could remain vulnerable to another selloff. A breakdown below $59,000 could expose it to $57,000 or lower to $54,000.
Is Bitcoin Price Heading For A Dead Cat Bounce?
Bitcoin’s latest crash has pushed the market into an important support zone, but the broader structure remains fragile. While liquidation data points to a possible short squeeze and a temporary recovery, the real question is whether this move will carry enough force to reverse the trend.
Right now, the setup looks increasingly like a classic dead cat bounce, a short-lived pullback that often follows heavy selling before the larger downtrend resumes. If BTC manages to defend the $60,000 zone and regain resistance between $63,000 and $65,500, the market may regain some stability. But failure to do so could confirm that this bounce is merely a liquidity-driven response, not a full recovery.
For now, all eyes remain on the question of whether the Bitcoin price has truly bottomed or is simply headed for a dead cat hop before the next big move lower.
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