The cryptocurrency $BTC has struggled to maintain its position above the $70,000 mark due to various macroeconomic challenges.
Increased selling pressure from short-term holders (STHs) and technical analysis suggest that the market may be entering a bearish phase.
Upcoming announcements from the Federal Reserve are expected to significantly influence future market trends.
After enjoying a brief period above $70K for three consecutive days, Bitcoin ($BTC) has now dropped below this critical resistance level, currently trading at $68,131—a decline of 3.96% within the last 24 hours as of this report.
According to blockchain analytics firm CryptoQuant, there has been a notable increase in selling activity among short-term holders (those who have held $BTC for less than 155 days).
Panic-driven STHs sold over 27,000 $BTC on exchanges within just one day. This represents one of the highest levels seen in recent months and indicates an impending capitulation phase.
Source: CryptoQuant
Additionally, other indicators supporting a bearish outlook include Bitcoin’s open interest declining by 3.94% over the past day to reach $45.13 billion while liquidations surged to $159.29 million.
A significant outflow of Bitcoin spot ETFs was recorded yesterday at $228 million, marking an end to a three-day inflow trend. BlackRock—the world’s largest issuer of crypto ETFs—has implemented a quarterly withdrawal cap of 5%, likely overwhelmed by increased withdrawal requests. Meanwhile, institutional crypto lender BlockFills is facing restructuring due to liquidity issues stemming from losses amounting to $75 million earlier this year.
The ongoing rise in oil prices amid tensions between the US and Iran along with inflation concerns and rising unemployment rates have led investors towards de-risking strategies.
The Road Ahead?
If Bitcoin manages to stay above its swing low at $67,757, it could stabilize between the ranges of $68K-$70K; however, failing that might lead it down towards testing support around $65K.
The community is also keenly awaiting how broader market dynamics will respond following the US Federal Reserve’s policy announcement scheduled for March 18th.