Key Takeaways:
- Bitcoin traders stacked over $500M in bids between $72,000 and $70,000.
- RSI fell to 33, its lowest level since Feb. 24, signaling bearish momentum.
- Options traders spent $10M on $70K put options as a downside hedge.
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Bitcoin dip buyers stack $500M in bids as $70K retest looms
Bitcoin fell toward $73,642 on May 29 as over $500 million in buy orders accumulated between $72,000 and $70,000, creating a key demand zone that could determine the next directional move.
Data from CoinGlass shows dip buyers placed 6,235 BTC in bid liquidity between $72,000 and $70,000, worth roughly $443 million at current prices. The largest cluster sits directly above $70,000, where buyers are positioned to absorb selling pressure. Bid liquidity refers to limit buy orders waiting below the market price — when price trades into those orders, it can slow a decline and trigger a sharp rebound if demand absorbs available supply.
Below $70,000, the next notable demand pocket sits at $68,505, where traders placed another 1,012 BTC worth approximately $69 million. Beyond that level, the order book thins considerably, with few visible bids below $68,500.
$2 Billion in Longs at Risk Near $70,000
Liquidation heatmap data shows about $2 billion in cumulative long positions at risk near $70,000, compared with more than $5 billion in short positions clustered around $78,000. Once Bitcoin taps the bid cluster near $70,000, the larger liquidity pool may trigger a sharp rebound toward overhead liquidation zones.
The relative strength index has fallen to roughly 33, its lowest level since Feb. 24, with momentum staying below the neutral 50 level throughout the recent decline, suggesting sellers still control short-term price action, according to TradingView data. Bitcoin's daily trend turned bearish after losing support at $74,800, confirming a pattern of lower highs and lower lows. The price is trading inside a descending channel and is currently testing support near the lower boundary around $72,000 to $73,000.
Options markets show investors have also been preparing for a move toward $70,000. Traders spent nearly $10 million on put options with a $70,000 strike during the recent dip, according to Glassnode. Put options rise in value when prices fall, making them a common hedge against downside risk. Recent flows show some easing in that protection demand as traders lock in profits, though the concentration of hedging activity highlights how closely the market is watching the $70,000 level.
Crypto trader Ardi said the $74,500 to $75,500 region now acts as resistance across multiple time frames. A rejection from that area could keep focus on the $71,500 region, while a move through channel resistance near $76,000 may challenge the ongoing downtrend.
This article is for informational purposes only and does not constitute investment advice.
