Bitcoin Price Analysis: Where Is the Bottom as BTC’s Correction Accelerates?

Bitcoin's correction has accelerated over the past week, dropping almost vertically after cutting through several support levels. The latest decline pushed the cryptocurrency below its daily ascending channel and the key $70,000 support zone, exposing deeper demand areas.

This is notable because the two averages printed a bullish crossover only in early October.

On the 4-hour chart, Bitcoin has been trading within a descending channel since the late-September rejection from the $86,000-$87,000 supply zone, with consistently lower highs and lower lows. The latest attempt to break above the channel's upper boundary was rejected around $81,000 in early November, triggering an aggressive sell-off.

The decline first broke the channel's lower trendline and the $76,000 demand zone, then accelerated through $70,000. BTC briefly dropped toward $65,000 and is now consolidating around $65,500, with buyers showing only a minor reaction so far.

Technical targets and demand zones

A relief bounce would likely meet resistance at the $70,000 zone, which sellers could now defend as supply. To invalidate the breakdown, buyers would need to reclaim this level and then the $73,000 region, where the channel's lower boundary and the 200-day moving average meet.

If selling pressure continues, the next demand zone sits around $63,000, where the price consolidated during August before the breakout. A decisive daily close beneath it would effectively erase the recovery structure of the past five months.

On-chain analysis shows that the Adjusted Spent Output Profit Ratio (aSOPR) has fallen back below 1, currently near 0.995. This metric measures whether coins moved on-chain are, on average, being sold at a profit or a loss, and readings below 1 suggest participants are realizing losses.

On-chain data signals loss realization

The indicator stayed above 1 for most of 2025 and peaked near 1.07 during the late-2024 rally.

After recovering to around 1.013 in October, the 30-day exponential moving average of the aSOPR has now fallen back below 1. This shift suggests that recent buyers are selling at a loss, a condition that has often coincided with local bottoms as selling pressure exhausts.

However, the metric could decline further, as it did in February. A sustained move back above 1, together with a reclaim of $70,000, would be a more convincing sign that the selling phase is easing.