Bitcoin experienced a pullback below $70,000, with analysis pointing to shifts in futures and spot markets that could lead to a recovery.
Bitcoin's price dropped below $69,000 on Thursday, reversing gains after briefly surpassing $76,000 earlier in the week. This pullback aligns with heightened selling pressure in Bitcoin futures markets and a decline in demand from U.S.-based investors, as indicated by data from CryptoQuant.
The Coinbase premium gap turned negative, signaling weaker buying interest from U.S. exchanges. Crypto analyst IT Tech reported a significant imbalance, with spot market cumulative volume delta falling by $40.64 million and perpetual futures dropping by $506.75 million, highlighting stronger selling from leveraged traders.
Market Indicators and Derivatives Trends
Despite the sell-off, Bitcoin funding rates have shifted to a positive 0.05%, indicating that long positions are now paying shorts, which suggests a lingering bullish sentiment in derivatives markets. Order book data shows bid-side support holding near the $70,000 level, with both spot and perpetual markets favoring buyers.
A fractal setup on lower timeframes mirrors an early-March correction, where Bitcoin swept liquidity levels before rebounding. This pattern includes a bullish divergence on the relative strength index (RSI), where RSI held equal lows as the price made lower lows, signaling fading seller momentum.
Liquidation data reveals significant long-side liquidations, reducing open interest and eliminating overleveraged positions. On the four-hour chart, a reclaim of $70,000 could trigger a move toward $76,000, with $72,000 acting as a key pivot point.
However, if Bitcoin falls below $68,300, attention would shift to support levels at $65,000 and $62,000. Trading Stables founder Ryan Scott noted that $73,000 serves as a critical base, and failure to hold above it could lead to a drop toward range lows near $62,000.
This article draws from CoinTelegraph's analysis, emphasizing verifiable market data without providing investment advice. All claims are based on the source's reported figures and expert observations.
