Bitcoin Price Analysis: BTC Remains Pinned Under $70,000. Lacks Momentum For A Sustained Rally

Bitcoin (BTC) remained pinned under the $70,000 level despite improving macro conditions, as market participants hoped for a sustained rally. The flagship cryptocurrency traded above $68,000 on Wednesday. However, as has been the case in recent sessions, price action turned bearish as BTC fell to a low of $65,926 on Thursday before rebounding to reclaim $67,000 and move to its current level of $67,081. The price is down over 1% in the past 24 hours.

According to analysts, improving macroeconomic conditions and rising expectations of rate cuts could benefit Bitcoin; however, any easing is expected to be gradual. BTC is posting short rallies that lose momentum due to a stronger dollar, a hawkish Fed, and persistent selling pressure around the $70,000 level.

CLARITY Act Could Pass By April

US Senator Bernie Moreno believes the US CLARITY Act could clear Congress by April. Senator Moreno made the comments during an interview with CNBC at President Trump’s Mar-a-Lago property. Moreno was joined by Coinbase CEO Brian Armstrong, who explained they were there with other representatives from the crypto and banking industries in an effort to iron out a solution on the crypto market structure bill. Armstrong conceded that stablecoin rewards did come up for discussions, stating,

“One of the big issues that did come up in the past was this idea of stablecoins on rewards.”

The banking industry has pushed back against stablecoin rewards, raising concerns that it could undermine traditional banking and shift deposits and interest away from legacy institutions.

Bitcoin (BTC) Back Under Quantum Scrutiny

Bitcoin’s potential vulnerability to quantum computing threats has come under renewed scrutiny from institutional investors. According to venture capitalist Nic Carter, large institutional holders could pressure Bitcoin developers if threats from quantum computing are not addressed. Carter’s comments come as institutional exposure to Bitcoin has surged thanks to custodial products and spot ETFs.

Leveraged Short Positions At Risk

Meanwhile, liquidation data suggests that a substantial volume of short positions could be liquidated if Bitcoin rallies 10%. Long positions are also vulnerable to liquidation if Bitcoin slides 10% in the opposite direction. The data was analyzed by trader Ted Pillows, who highlighted that leveraged short positions outweighed long positions, creating a condition where a rally could trigger rapid buybacks. Pillows’ analysis also identified trigger levels that could create a path towards higher price levels. It also identified a nearby area tied to a Chicago Mercantile Exchange (CME) futures gap.

CoinGlass data revealed significantly elevated leverage across derivatives venues, while open interest remained around round-number strikes. Meanwhile, on-chain analyst miracleyoon noted that the Short-Term Holder Spent Output Profit Ratio had dipped below the 0.95 capitulation zone before rebounding towards 1.0. The Short-Term Holder Spent Output Profit Ratio is a metric that measures whether short-term holders are selling at a profit or a loss.

Arthur Hayes Calls For Major Crypto Rally

BitMEX co-founder Arthur Hayes is predicting a major crypto rally, tying it to a $572 billion liquidity wave coming from Washington. According to Hayes, a synchronized drawdown of the Treasury General Account and debt buybacks will flood the markets with liquidity. According to Hayes, around $572 billion would hit the market before the end of the year, adding a much-needed boost to Bitcoin’s sluggish price action.

The Treasury General Account is the government’s checking account at the Fed. When the account’s balance is high, the cash sits in the account. However, when it is spent, the money flows into the market, boosting overall liquidity. According to Hayes, the Treasury is quietly pushing cash back into the market while talking about fiscal tightening. According to Hayes, he sees an opportunity in the gap between the Fed’s messaging and actual action.

Bitcoin (BTC) Price Analysis

Bitcoin’s (BTC) price action over the past few days has done little to inspire confidence. The flagship cryptocurrency traded above $68,000 on Wednesday but lost momentum after yet another brief rally. As a result, it fell to a low of $65,926 before rebounding to reclaim 67,000. BTC is down nearly 2% over the past 24 hours, trading around $66,766.

Bitcoin is on track to record its fifth consecutive weekly loss as geopolitical tensions and macroeconomic conditions lift the US dollar and crude oil prices, compounding pressure on an already fragile market. Geopolitical tensions are adding to investor concerns. According to reports, the US has mobilized its forces in the Middle East as President Donald Trump prepares to launch strikes on Iran. Polymarket bettors have given a 27% chance of the situation in the Middle East escalating by the end of the month. Rising geopolitical uncertainty has pushed the dollar index to 97.7, its highest level since February 6. Meanwhile, WTI Crude has climbed from $62 to $65.

If we look at Bitcoin’s four-hour chart, we can see it forming a descending channel mirroring last week’s structure. A clear bullish divergence has developed within the structure, with the price printing lower or equal lows. In comparison, the RSI prints higher lows, indicating that selling pressure is losing momentum on the shorter time frame. A sustained rally at this point could push Bitcoin past the $70,000 mark and test the resistance around $71,500.

Bitcoin (BTC) started the previous week in the red, registering a marginal decline to $70,101. The flagship cryptocurrency slipped below $70,000 on Tuesday, dropping 1.85% to $68,803. Selling pressure intensified on Wednesday as the price fell 2.59% to $67,024. BTC encountered volatility on Thursday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price fell 1.22% to $66,208. Despite the overwhelming selling pressure, BTC recovered on Friday, rising nearly 4% to $68,812.

Price action was mixed over the weekend as BTC rose 1.42% on Saturday to reclaim $70,000. However, it returned to bearish territory on Sunday, dropping 1.43% to $68,792. Volatility persisted on Monday as buyers and sellers struggled to establish control. BTC ultimately registered a marginal increase to $68,858. Selling pressure returned on Tuesday as the price fell 2.02% to $67,466. Sellers retained control on Wednesday as BTC dropped 1.55% to $66,419. The flagship cryptocurrency is up 0.50% during the ongoing session, trading around $66,737.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Bitcoin Price Analysis: BTC Remains Pinned Under $70,000. Lacks Momentum For A Sustained Rally was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.