Bitcoin's price action has been tumultuous lately, leading to significant liquidations across the crypto market. In the last 24 hours alone, liquidations exceeded $250 million, causing turmoil for both long and short traders. Currently hovering around $70,000, Bitcoin's price is setting the stage for a potential retest of local support levels.

Market analysts are closely watching Bitcoin as it seems to be caught in a battle between bulls and bears. A recent analysis suggests that bears are attempting to regain control of the price trend, leading to a series of liquidations that have affected many traders. Over the past day, Bitcoin recorded a 2.3% decline, drawing attention to the $68,500 mark as a critical level for market participants.

Despite the relatively stable price action, the liquidations remain high, hinting at underlying volatility. A notable event occurred when Bitcoin briefly surged to $71,000, liquidating approximately $130 million in short positions, only to plummet back to around $68,000, resulting in liquidation of another $150 million in long positions. This pattern highlights the precarious state of the market, where sudden price movements can trigger massive liquidations.

The ongoing market situation indicates that traders are on edge, especially with significant liquidity stacking up both above and below the current spot price. Analysts predict that the price level between $66,000 and $68,000 may become a key zone for potential sweeping liquidations, as a substantial amount of leveraged liquidity is building in that range.

The sentiment among traders is mixed, with some expressing concerns about a lack of demand pushing Bitcoin into a downward trend. The data from on-chain analytics platforms suggests that even though coins are being spent, there isn't a corresponding increase in fresh capital inflows. This discrepancy raises alarms about the market's ability to absorb the distributed supply, which could lead to further price declines.

In addition to the liquidations, Bitcoin miners have increased their inflows to exchanges, likely to cover operational costs amid expectations of a prolonged bear market. This trend underscores the prevailing bearish sentiment, with many traders and investors speculating about the potential for a significant price drop in the near future.

As the market grapples with these developments, the focus remains on how Bitcoin will navigate this critical juncture. Will the bulls find enough demand to reverse the trend, or will the bears take full control? The coming days will be crucial in determining the direction of Bitcoin's price and the overall health of the cryptocurrency market.