The Bitcoin price has experienced significant volatility recently, plunging into the $70,000 range after a violent sell-off. This sell-off wiped out many short-term bullish positions, forcing Bitcoin below crucial intraday support levels. While risks of further declines remain, there are signs that Bitcoin is stabilizing and could quickly reclaim important price levels.

One key development in the market was the sweep of the last yearly candle low around $74,456. This move not only flushed out liquidity resting below previous lows but also set the stage for potential recovery. From a market-structure perspective, this type of sweep is a reset point, clearing out weak hands and allowing the price to establish a more stable foundation.

Following this liquidity grab, Bitcoin rebounded to approximately $77,000. This bounce indicates that buyers are willing to defend this area after the liquidation event. The current price action indicates that Bitcoin is transitioning into a decision zone, with the next directional move becoming increasingly critical.

Crypto analyst Minga has pointed out that Bitcoin is testing the weekly open just below $77,000. If it can hold above this level, it would signify that the recovery is gaining traction. This, in turn, would likely allow the price to revisit the monthly open at around $78,700. Furthermore, the chart shared by Minga shows multiple equal highs just above this range, highlighting a pocket of unfinished business that traders will be eager to address.

Should Bitcoin manage to reclaim and sustain acceptance above the weekly open, the likelihood of pushing through the monthly open increases. This momentum could potentially carry Bitcoin back into the $80,000s, where the price target of $81,000 resides. Given the current trading price of $70,930, which is down 7.2% in the last 24 hours, maintaining support is crucial.

However, the path ahead is not without risks. If Bitcoin continues to face rejections at the weekly open, a deeper downside target could emerge between $70,800 and $69,100. This range is significant as it aligns with a high-confluence zone that includes a higher-timeframe order block and the 0.5 Fibonacci retracement level. It also coincides with the last cycle's all-time high in 2021.

At this juncture, Bitcoin’s trading behavior will be closely watched. If it can hold above the critical support zone after the current test, it is likely to enter a consolidation phase before attempting to break above $81,000. The market remains dynamic, but traders are cautiously optimistic about Bitcoin's ability to navigate these turbulent waters and emerge stronger on the other side.