Bitcoin’s rally stalled mid-week, dropping 3.4% to $70,900 amid a broad sell-off in U.S. stocks. The decline followed a hotter-than-expected Producer Price Index report, though buyers absorbed selling pressure, allowing BTC to reclaim $72,000 after Federal Reserve minutes confirmed unchanged rates. Analysts note critical technical support levels near $71,000 must hold to maintain the short-term bullish structure.
Bitcoin’s bullish start to the week halted on Wednesday as BTC dropped to $70,900 alongside a sell-off in U.S. stocks. The correction followed a Producer Price Index report that was 0.7% higher than the 3.4% year-on-year estimate.
Despite the selling, data shows spot market demand held steady with buyers absorbing pressure. This appetite was reflected as Bitcoin reclaimed $72,000 after Federal Reserve minutes highlighted their decision to leave interest rates unchanged.
On the four-hour chart, Bitcoin shows a higher low pattern, keeping the short-term uptrend intact. The price action is holding above both the 100- and 200-period exponential moving averages, which are acting as dynamic support.
From a technical standpoint, BTC needs to defend the $70,250 to $71,275 range, which marks internal liquidity levels. Losing this range exposes the next liquidity pocket near $68,900, aligning with a prior demand zone.
Prior to the correction, onchain data pointed to rising sell-side activity from short-term holders. According to crypto analyst Darkfost, over 48,000 BTC in profit moved to exchanges in a single day as price approached $75,000.
CoinGlass data shows passive bids were filled during the drop from $74,000 to $71,000. Similar absorption patterns over the past two weeks have preceded short-term recoveries.
Market analyst Sherlock stated that since June 2025, Bitcoin has declined after each of the last six Federal Open Market Committee meetings. With markets pricing in another hold on rates, trader attention may shift to price reaction around current liquidity clusters.
