Analysis: Bitcoin hovering around the $70,000 mark may indicate that the market bottom has not yet arrived.
PANews reported on March 20th that, according to Cointelegraph analysis, Bitcoin's price hovering around $70,000 may indicate that the market bottom has not yet been reached. Bitcoin fell below $69,000 on Thursday, returning to its six-week trading range. This pullback coincided with increased selling in the Bitcoin futures market and stagnant demand from US investors. A significant imbalance exists between spot and perpetual contracts, with the cumulative spot trading volume difference decreasing by $40.64 million and perpetual contract volume by $506.75 million, indicating stronger selling pressure from leveraged traders. However, funding rates have turned positive to 0.05%, suggesting that bulls are in control, and order book data shows buying support around $70,000.
From a short-term chart perspective, Bitcoin is forming a technical pattern similar to that of March 6-8, when the price rebounded after a pullback. The Relative Strength Index (RSI) is showing a bullish divergence, and liquidation data also supports this structure. A rapid recovery above $70,000 could initiate a move towards $76,000, with a key turning point at $72,000. A break below $68,300 could see a further decline to between $65,000 and $62,000.
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