Bitcoin (BTC) Hits a Wall: Bull Run or Bull Trap?
After nearly touching $76,000 on March 17, Bitcoin‘s price suffered a violent retracement, plummeting brutally to around $68,690 within 48 hours. Since this low point, the queen of cryptocurrencies has begun a tentative 3% recovery, stabilizing above $70,700. While this short-term momentum appears positive, the overall market structure remains deeply bearish. A bearish order block on the 6-hour timeframe has formed at the local top. A return to the $66,000 to $68,000 zone in the coming days is likely.
Trader Killa, for example, is calling for capitulation in April and a bottom in July. Indeed, the formation of a head-and-shoulders pattern threatens to send the price plunging. A break below the critical support level of $67,800 could trigger a rapid 8% drop, bringing BTC back toward the $61,800 zone. Short positions are accumulating massively, intensifying pressure on the order book.
Gracy Chen’s Major Warning: Liquidity is Drying Up
The real threat doesn’t just come from technical analysis, but from macroeconomic fundamentals. Gracy Chen, CEO of Bitget exchange, recently spoke out to warn about increasingly restrictive liquidity conditions. According to her, it’s far too early to claim the bear market is over, as capital flows haven’t yet returned to optimal levels to support a genuine bull run.
On X, the executive clarified her thinking regarding her investment strategy:
- The $60,000 to $70,000 zone remains suitable for a dollar-cost averaging (DCA) strategy.
- This is absolutely not the time to go “all-in” on the crypto market.
- She would wait for a deeper retracement, toward $50,000, to deploy her entire capital.
Is This the Right Time to Buy Bitcoin Before the Next Breakout?
Faced with these contradictory signals, traders are navigating by sight. On one hand, maintaining above $70,000 offers hope for a breakout. On the other, the selling pressure and lack of institutional liquidity highlighted by Bitget suggest that a severe correction is still on the table. Moreover, the most experienced traders are waiting for a correction below $60,000 to accumulate again.
If the 8% drop scenario materializes, it could offer a golden opportunity to accumulate BTC at discounted prices. However, a new bounce toward $78,000 is still possible if BTC maintains its current level.
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