Bitcoin is undergoing a reset across various key indicators as the recent price drop leads to the unwinding of leverage. Despite a 7% decline in April, the retest of support levels appears to be providing relief to overheated markets.

The drop triggered significant liquidations, totaling $400 million for Bitcoin and altcoins combined, leading to negative funding rates. This shift in the funding landscape has been acknowledged by trading firm QCP Capital in its market updates.

Meanwhile, Bitcoin's relative strength index (RSI) has returned to the midpoint of 50 on daily timeframes, a crucial level during uptrends. Bollinger Bands on daily charts suggest a potential pre-breakout phase reminiscent of patterns seen in February.

This development mirrors observations from late December 2023, when both RSI and Bollinger Bands hinted at a need for acceleration in the bull market.