Bitcoin consolidates above $65,700 as traders rebound

Bitcoin briefly fell to $64,503 at 7:05 a.m. EDT on Wednesday before rebounding above $65,700 by 12:21 p.m., according to trading data. The token hit an intraday high of $66,025 late Tuesday, oscillated mainly between $65,500 and $65,750, and finished the session down about 0.1%, leaving market capitalization near $1.32 trillion.

Glassnode’s weekly report indicates on-chain metrics are consistent with a consolidation base after short-term speculators exited. The report shows capitulation intensity easing and spot cumulative volume delta moving from negative territory back to breakeven, a sign that net spot buying and selling have balanced.

Spot trading volume fell 40.4% to $5.8 billion and futures open interest declined about 3% to $30.6 billion, data show. Market analysts pointed out that the price recovery looked driven more by short-covering than by new institutional buying.

Leveraged positions registered limited losses in the move: roughly $50.4 million in long liquidations and $28.2 million in short liquidations for bitcoin. Across the wider digital-asset market, total liquidations reached about $291 million, with long positions accounting for about $180 million of that amount.

Geopolitical and policy events were active during the session. Traders awaited the formal signing of a U.S.–Iran memorandum of understanding expected Friday; the initial announcement earlier in the week provided early support. The Federal Open Market Committee is meeting for two days in its first gathering under newly sworn-in Fed Chair Kevin Warsh. Reports that the Strait of Hormuz may reopen have increased expectations of weaker crude oil prices.

On-chain data show consolidation patterns while spot and futures activity have declined. Market participants are watching volume measures and the outcomes of the memorandum signing and the FOMC meeting for further data on market direction.