Bitcoin’s early-week rally cooled Wednesday as BTC slid about 3.4% to roughly $70,900 amid a broader U.S. equity pullback.
The downturn followed a hotter-than-expected Producer Price Index print — roughly 0.7 percentage points above the estimated 3.4% year-on-year — which added near-term selling pressure.
Even so, spot demand remained resilient. Buyers absorbed the dip and pushed BTC back above $72,000 after the Federal Reserve signaled it would hold interest rates, supporting a recovery in price.
Market participants had largely expected a Fed pause, but ongoing volatility in oil and stocks and the geopolitical tensions involving the U.S., Israel and Iran kept traders on edge.
Technical view: bulls must hold key bands
On the four-hour chart, Bitcoin has formed a higher-low structure that preserves the short-term uptrend. Price is trading above the 100- and 200-period exponential moving averages (EMAs), which are acting as dynamic support levels.
Those EMAs smooth price action and help confirm trend direction when they sit below spot price. That alignment could help BTC stabilize around $71,000 and form a base after the day’s retracement.
From a risk-management perspective, the $70,250–$71,275 band is critical: it represents internal liquidity built during Monday’s breakout and marks areas where orders were previously executed. A breakdown below that range would likely expose the next liquidity pocket around $68,900, which lines up with a prior order block between $68,300 and $69,100 where demand earlier absorbed selling.
Keeping the $70k–$71k area intact supports the lower-timeframe bullish structure, with higher lows signaling continued buying interest on pullbacks.
On-chain and order-flow signals: profit-taking met by bids
Ahead of the pullback, on-chain indicators showed increased sell-side activity from short-term holders. Crypto analyst Darkfost reported that more than 48,000 BTC in profit moved to exchanges in a single day as the market approached $75,000, suggesting notable profit-taking by traders.
At the same time, CoinGlass data pointed to passive bids being consumed during the drop from $74,000 to $71,000. Similar bid absorption events over the past fortnight have often preceded short-term recoveries, indicating persistent demand at lower levels.
Context from Fed meeting history
Analyst Sherlock observed that, since June 2025, Bitcoin has tended to pull back following each of the last six Federal Open Market Committee meetings, irrespective of whether the Fed raised, cut, or held rates. With markets pricing in another rate hold, participants will be watching how BTC reacts around the current liquidity clusters — particularly near $71,000.
Other market notes
Reports also noted that Bhutan moved to sell an additional $72.3 million worth of Bitcoin amid the broader market downturn, adding to sell-side flows.
Disclaimer
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