Bitcoin relief bounce to $70K is what many traders now expect. However, the broader technical setup remains bearish.
BTC plunged toward $60,000 on Thursday. That move triggered more than $600 million in long liquidations.
Why a Bitcoin relief bounce to $70K could happen
BTC fell to roughly $61,300 before recovering . The rebound coincided with reports that Israel and Lebanon agreed to a ceasefire.
The volatile move liquidated over $741 million in BTC positions on a 24‑hour rolling basis. According to CoinGlass, over $623 million in long positions were wiped out. This shows how aggressively bullish traders were positioned before the sell‑off.
Nevertheless, the sharp rebound encouraged some traders to call for a bottom.
Trader RidaaXBT said BTC could stage a relief bounce toward $69,000–$70,000. The liquidation‑driven selloff may have exhausted near‑term sellers. Analyst ZordXBT agreed, pointing to Bitcoin’s long downside wick as a sign that buyers stepped in aggressively near the lows.
On the other hand, trader Hitman42.eth warned that bulls may be celebrating too early. The bounce could end up trapping them.
Bitcoin bear flag keeps $50K target in play
Bitcoin’s weekly chart still shows a bear flag breakdown in progress. Therefore, the risk of a deeper drop toward $50,000–$52,000 remains alive.
The setup follows BTC’s failure to reclaim the flag’s upper trend line. Rising volumes add weight to the downside move.
However, the bearish scenario is not confirmed as long as BTC trades above its 200‑week simple moving average (SMA) at roughly $61,800. This level has acted as a major cycle‑bottom zone in past bear markets, including 2015, 2018, and 2020.
A strong rebound from the 200‑week SMA would weaken, or potentially invalidate, the bear flag breakdown. Consequently, BTC could then test $70,000 as the next upside target.