The price of Bitcoin surged past $71,000 on Wednesday, overcoming concerns related to geopolitical tensions in the Middle East and rising global oil prices. On-chain metrics indicate that selling pressure might be diminishing.
Bitcoin’s value climbed over 5%, challenging the upper limits of its recent trading range. Notably, exchange inflows fell to 28,235 $BTC, a figure historically associated with lower selling pressure and potential accumulation phases. Additionally, technical indicators like the Balance of Power have turned positive, suggesting an increase in short-term buying momentum.
Are Bitcoin sellers running out of steam? Exchange flows near cycle lows
Analysis from CryptoQuant indicates that recent military actions in Iran have created ripples across energy markets; WTI crude oil surpassed $75 while Brent crude exceeded $82 after consecutive gains of 6%. Despite a fragile macroeconomic backdrop and a technically intact bear market structure, Bitcoin has exhibited significant relative strength.
At the time CryptoQuant conducted its analysis, Bitcoin ($BTC) was priced around $68,637 and nearing what analysts refer to as an accumulation zone. A crucial metric supporting this perspective is Exchange Inflow—the volume of $BTC moved to exchanges—often signaling impending sales.
Historically speaking, readings below 40,000 $BTC have coincided with diminished selling pressure and market bottoms; conversely, levels exceeding 90,000 $BTC typically mark cycle peaks.
A notable drop occurred on March 3rd when exchange inflows recorded just 28,235 $BTC, significantly lower than previous cycle highs ranging from 97,587 $BTC to 134,619 $ BTC . The reduced inflow suggests that sellers may be losing their edge even amid ongoing global instability.
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An overview of Bitcoin’s price movements and critical levels
The current daily chart shows Bitcoin trading at approximately $71 ,795 following a robust green daily candle representing more than a five percent increase. This uptick comes after a steep correction from late January highs close to $95 ,000 , where prices found local support between the ranges of about $63 ,000–$65 ,000 early in February .
Bitcoin price analysis | Source: Crypto.News
Since experiencing that capitulation-style decline , Bitcoin has been consolidating within an extensive range between roughly support at $65 ,000 and resistance at around$72 ,000 . The latest attempt to break out above$71，000 brings it closer again toward this consolidation band’s upper boundary .
Immediate resistance now stands around$72，000–73，000 followed by heavier supply zones near$78 ，000–80 ，000 where prior breakdown momentum intensified . On the downside first support rests at68 ，0 00 with stronger structural backing located nearer65 ，0 00.
If this level fails then it would reopen pathways towards February lows near63 ，0 00.
Volume has seen modest increases during this recent rebound but remains beneath spikes observed during early February sell-offs.
Meanwhile,the Balance Of Power indicator shifted positively reading about around zero point seven seven indicating buyers are gaining short-term control following weeks spent churning sideways.
The broader macro landscape continues uncertain however,Bitcoin’s ability rally despite geopolitical stress coupled low exchange inflows hints transition distribution into early-stage accumulation could underway.
A decisive close above seventy-two thousand seventy-three thousand would strengthen arguments for larger recovery attempts.