Bitcoin may retest $60K due to growing liquidity gap.

Bitcoin (BTC) prices fell to $65,800 on Wednesday, falling back below major daily trend lines and fueling concerns that last week's drop to $60,000 may not be the last bottom. Now, analysts say the possibility of another dip to the annual low ($59,800) is increasing as the liquidity gap between $66,000 and $60,000 continues to grow.

Main Receptors:

Bitcoin has made a series of lower highs after repeated rejections near the 70,000-$72,000 protection zone.

The Relative Strength Index (RSI) is trending towards an oversold level as the price trades below its key moving average.

The liquidity heat map indicates a lack of liquidity up to $60,500, leaving the downside risk open.

Failure to hold $70,000 will dampen Bitcoin's short-term prospects

Bitcoin's one-hour chart shows several failed attempts to hold above $70,000. Each rejection led to lower prices and constant sales pressure.

The price of BTC rose to $69,800 in a short day before reversing sharply in the New York session on Wednesday. The step lengthened the rupture and accelerated the downward trajectory.

BTC traded below both the 50-period and 100-period exponential moving averages, confirming the short-term bearish control. RSI remains below 50, indicating limited buying pressure.

A 15-minute order block is placed near the $60,800–$61,000 range, an area of ​​strong buying pressure after BTC's earlier print at $59,800. If it fails to hold $64,000, this range remains a liquidation target.

Related: When Will Bitcoin Begin a New Bull Cycle Towards $150K? Look for these signs

Heat map data shows that $60,000 is a liquid magnet.

Bitcoin's liquidity heatmaps show stacked orders above $72,000, but also highlight a «liquidity gap» between $66,000 and $60,500. This «liquidity void» can act as a magnet, as the price tends to quickly tap into lower-accumulated stop stacks in areas of low liquidity.

Although the more visible liquidity is higher, the loss remains open as the final stack of benefits, worth more than $350 million, is still around $60,500.

Bitcoin trader Husky said Bitcoin is slipping below its anchor volume average price (VWAP) from last week's low of $59,800, a level that is acting as a short-term fair value.

As the overall market structure begins to weaken, the lack of a quick recovery above $68,000 increases the risk of a decline to lower support levels near $65,000. For now, bitcoin is expected to trade broadly in the $60,000 to $72,000 range, the trader said.

Similarly, BTC is consolidating in a descending channel towards $66,500, according to market analyst Elise. A break below this level could send the price towards the $63,400–$64,600 support zone, raising the possibility of a revisit to $60,000.

RELATED: Bitcoin reacts to key US jobs data as Fed pace halts odds at around 95%