Bitcoin Rejects $65,500 Supply Zone as Bears Target $64,258 Support

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Nikolaj Krastev
8 August, 2026, 23:40
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Bitcoin Rejects Key Supply Zone Near $65,500 – Bearish Pullback Setup in Focus

Bitcoin is consolidating directly beneath a major supply zone on the 2-hour chart after a recent bullish break of structure. Price continues to respect a short-term higher-high and higher-low sequence, but the rejection from the 65,177–65,568 resistance area has shifted attention toward a potential pullback.

Current Structure and Key Levels

BTCUSDT is trading just below the 65,177–65,568 supply block, which has so far capped upside attempts. The 65,568 level stands out as the critical resistance ceiling. Below current price, two Fibonacci retracement levels are clearly visible at 64,258 (0.618) and 63,916 (0.5).

Further down, a bullish Fair Value Gap (FVG) sits in the 62,800–63,200 region. This imbalance zone could serve as a deeper demand area if selling pressure accelerates and price moves more aggressively lower.

The Ichimoku cloud remains positioned below price and continues to offer structural support on the broader 2-hour timeframe. However, a sustained rejection from the overhead supply zone would increase the probability of a retracement toward the Fibonacci levels and potentially the FVG.

Bearish Pullback Scenario

The primary short-term bias leans bearish as long as price remains below the 65,568 resistance. A rejection from the 65,177–65,568 zone followed by a break of 64,258 would open the path toward 63,916 as the first downside target. Continued weakness could then extend the move into the 62,800–63,200 Fair Value Gap.

Bitcoin Rejects Resistance: FVG & CHoCH Target $64.2K Support

This sequence would represent a classic pullback within the larger structure after the recent bullish break of structure, allowing the market to rebalance before any potential continuation higher.

Bullish Continuation Scenario

The bearish pullback setup would be invalidated by a decisive 2-hour close above 65,568. Such a breakout would confirm that buyers have absorbed the supply zone and would shift momentum back toward continuation. In that case, upside targets come into view in the 65,750–66,000 region.

Until that confirmation appears, any rallies into the supply zone are more likely to be treated as selling opportunities within the current framework.

Bias and Outlook

The present bias is neutral-to-bearish below 65,568 and turns bullish only on a confirmed breakout above that level. Traders watching this structure will focus on price behavior at the supply zone: continued rejection and a break of 64,258 would favor the downside targets, while a clean close above 65,568 would reopen the path for higher prices.

The interaction between the current resistance block, the Fibonacci retracement levels, and the lower Fair Value Gap will determine whether Bitcoin experiences a controlled pullback or resumes its short-term upward structure in the sessions ahead.