Bitcoin’s (BTC) bullish start to the week paused on Wednesday as BTC fell 3.4% to $70,900 amid a broader US stock sell-off.
The correction followed a hotter-than-expected Producer Price Index (PPI) report, which was 0.7% higher than the 3.4% year-on-year estimate.
Despite the sell-off, spot demand stayed firm, with buyers absorbing pressure and pushing Bitcoin back above $72,000 after the Fed signaled it would hold rates.
Market consensus had leaned toward a Fed pause, but volatility in oil, equities, and geopolitical tension around the US–Israel–Iran hostilities kept traders cautious.
Bitcoin bulls need to defend these price levels
On the four-hour chart, Bitcoin forms a higher-low pattern, keeping the short-term uptrend intact. Price is trading above both the 100- and 200-period exponential moving averages (EMAs), which act as dynamic support.
These EMAs track average prices over time and help define trend direction when they sit below price action.
This confluence could allow BTC to stabilize near $71,000, forming a potential base after the day’s sell-off.
From a technical standpoint, BTC must defend the $70,250–$71,275 range, which marks internal liquidity built during Monday’s breakout. This zone represents areas where orders were filled and may attract another liquidity sweep.
Losing that range exposes the next liquidity pocket near $68,900, aligned with a small order block between $68,300 and $69,100 where prior demand absorbed selling pressure.
Maintaining these levels keeps the lower-timeframe structure bullish, with higher lows signaling continued demand on dips.
Related: Bitcoin tests fresh decoupling trade as tech correlation drops to 2018 lows
Bitcoin profit-taking meets bid absorption under $74,000
Before today’s correction, onchain data showed rising sell-side activity from short-term holders (STHs). According to crypto analyst Darkfost, over 48,000 BTC in profit moved to exchanges in a single day as price approached $75,000, indicating buyers locking in gains and treating rebounds as exit opportunities.
At the same time, CoinGlass data shows passive bids being filled during the drop from $74,000 to $71,000. Similar absorption patterns over the past two weeks have preceded short-term recoveries, highlighting persistent demand at lower levels.
Meanwhile, BTC’s reactions around past Federal Reserve meetings offer context. Market analyst Sherlock noted that since June 2025, Bitcoin has declined after each of the last six Federal Open Market Committee (FOMC) meetings, regardless of rate direction.
With markets pricing in another rate hold, traders will watch how BTC behaves around current liquidity clusters, especially near $71,000.
Related: Bhutan offloads an additional $72.3M Bitcoin amid market downturn
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
