Amid a 1.68% decline in the overall cryptocurrency market cap, Bitcoin faces increasing selling pressure, contributing to a downturn despite 90% of Bitcoin HODLers currently in profit.

The recent liquidation of nearly $500 million in long positions underscores a strong bearish sentiment prevailing in the market. However, the resilience of 70% of long-term HODLers, who have held Bitcoin for over a year, reflects enduring confidence among investors.

This week's trading began cautiously in the Asian markets, with Bitcoin showing a 1.10% decline, hovering just above the $65,000 mark. Despite finding support above $64,050, Bitcoin has struggled to sustain bullish momentum, marking a nearly 5% decline over the past ten days. The critical question now is whether Bitcoin can maintain levels above $65,000 amidst ongoing market volatility.

Bitcoin Price Performance Amidst Market Corrections:

Following a breakdown below the support trendline and the 50-day EMA, Bitcoin's price trajectory has disappointed bullish traders, with the anticipated inverted head and shoulders pattern failing to materialize.

Recent short-term recovery attempts have been thwarted, resulting in a 7.62% decline over the past twelve days. The formation of lower highs coupled with increased trading volumes indicates strong bearish sentiment and selling pressure.

As of now, Bitcoin trades at $65,777, displaying a long-tail formation in its daily candle, hinting at potential bullish movements in shorter timeframes.

Derivatives Market Insights and Potential Reversal Signals:

Despite a positive funding rate indicating optimism among long traders, the open interest (OI) has seen a decline, standing at $17.616 billion, down by 2.63% in the past 24 hours and 4.88% over the past week. This decline suggests profit-taking and possibly liquidations of leveraged long positions, tempering market enthusiasm.

While rising funding rates suggest bullish sentiment, the decrease in OI presents a cautious outlook. Any gradual increase in market traction could potentially trigger a reversal from the $65,000 support level.

Forecasting Bitcoin's Potential Downward Movement:

Amidst ongoing market corrections, Bitcoin's struggle to sustain above $65,000 raises concerns of further downside potential. However, signs of bullish resilience emerge with each lower price rejection, bolstering confidence among bullish traders.

A sustained intraday bullish stance above $65,000 could pave the way for a reversal, potentially challenging the $70,000 mark by week's end, countering recent market corrections.

While uncertainties loom amidst market turbulence, strategic monitoring of key support levels and derivatives market dynamics will be crucial in determining Bitcoin's short-term price trajectory.