Bitcoin price has rebounded more than 4% since February 19, helping it recover above $68,200. This bounce offered temporary relief after weeks of weakness. However, new technical and on-chain signals now show that Bitcoin may be approaching its most dangerous level of 2026. A combination of bearish chart structure, heavy supply clusters below price, and rising leverage risk suggests a deeper correction could begin soon.
Bitcoin’s 8-hour chart currently shows a head-and-shoulders pattern. This is a bearish reversal structure that forms when price creates three peaks, with the middle peak higher than the others. It signals weakening buying strength and increasing selling pressure. During this period, the Bitcoin price created a lower high, meaning the recovery failed to fully regain its previous peak.
However, the Relative Strength Index, or RSI, formed a higher high. These levels are important because they represent prices at which many investors bought Bitcoin. If Bitcoin falls below these levels, holders may begin selling to avoid losses. Derivatives data shows rising liquidation risk as Bitcoin rebounded.
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