Bitcoin has experienced a defensive relief bounce back after dipping to a daily low near $62,500. While the price has recovered to roughly $65,000, on chain metrics suggesting the asset remains in a structurally weak position. The “crypto king” recently broke down from a triangle pattern raising concerns of further downside. Although the recent price may appear to be stabilizing, fundamental indicators suggest potential prolonged weakness.

Historically, such beaks have lasted for six months or longer before recovering. Reclaiming levels above 1 has commonly aligned with market mechanics returning to the crypto space. Until that shift occurs, sentiment may remain defensive and capital inflows limited. Furthermore, recent on chain- data reveals notable shifts among large Bitcoin holders.

Over the last 12 days, their share of total supply declined from 21.7% to 21.2%. This marks the significant reduction of nearly 90,000 BTC valued at approximately $5.8 billion. Bitcoin is trading at $65,475 at the time of writing after bouncing from the $62,525 support level over the past 24 hours.

Meanwhile, the earlier triangle breakdown projected a potential 14% decline. However, immediate downside momentum appears to be slowing. If macro bearish signals continue to dominate, Bitcoin would retest the $62,525 support level; a decisive break below that threshold could expose BTC to the psychological $60,000 mark.

Buying interest at current levels, may shift short-term momentum; a breakdown above the $67, 394 resistances would invalidate the triangle pattern. Sustained strength beyond that point would signal improving structure for BTC, suggesting a temporary bad recovery despite broader market constraints.