Gate News reports that on March 23, Bitcoin continued its weakness after breaking below the key head and shoulders neckline, declining approximately 6% over the past week and currently hovering around $68,100. Technical patterns indicate a potential downside target near $62,200, with short-term market pressure clearly evident.
Structurally, Bitcoin completed a head and shoulders top pattern on the 12-hour chart, with the neckline effectively broken on March 21. This pattern typically signals a trend reversal, with an estimated decline of about 10%. Notably, the neckline was previously upward-sloping, suggesting sustained buying support in that area. Once broken, selling pressure tends to intensify.
However, momentum indicators show some divergence signals. Between March 8 and 22, the price made higher lows, while RSI continued to decline, forming a hidden bullish divergence. Currently, RSI stands at 39.77, below neutral but not yet in the extreme oversold zone, leaving room for a short-term rebound.
On-chain data presents a different trend. According to Glassnode, the number of addresses holding at least 1,000 BTC has risen to 1,283, reaching a one-year high. Within just two days of the neckline break, about 6,000 BTC were absorbed. Meanwhile, long-term holders (holding over a year) increased their net holdings to 144,374 BTC, a significant rise from the previous day, indicating some funds view the pullback as a buying opportunity.
Nevertheless, overhead selling pressure remains intense. On-chain URPD indicators show large clusters of chips around $69,400 and $70,600, totaling over 670,000 BTC in potential liquidation zones. If the price rebounds to these levels, it could trigger concentrated selling, limiting upward movement.
In the short term, $69,500 is a critical pivot point. If the price stabilizes above this level and breaks through $70,700, it may confirm that selling pressure is gradually being absorbed. Conversely, a drop below $67,600 could push the market further down to $64,000 or even $62,000, with an extreme test of support at $59,600.
Currently, Bitcoin shows a mixed picture of technical weakness and increasing capital inflows. The market direction will ultimately depend on the outcome of key price level battles.
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