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Bitcoin (BTC) surged 6% to $71,090.87, positioning itself at the center of a “liquidity rally” moving in step with traditional equity markets.
According to CoinMarketCap on March 4 (local time), Bitcoin rose 6.00% over the past 24 hours to trade at $71,090.87. During the same period, the total cryptocurrency market capitalization increased by 4.61%, while Bitcoin showed a strong 81% correlation with the S&P 500, effectively mirroring macro risk assets. The rebound is interpreted as being driven more by renewed risk appetite stemming from interest rate and liquidity expectations than by issues specific to individual coins.
Technical indicators also supported the upward move. The price broke above both the 7-day simple moving average of $68,721.68 and the 50% Fibonacci retracement level of $68,688.95. Twenty-four-hour trading volume surged to $55.87 billion, while the 14-day Relative Strength Index (RSI) jumped to 73.33, signaling strong buying momentum. Analysts note that the inflow of trend-following capital confirms a structural breakout.
In the short term, the $68,700–$68,950 range has emerged as a key support zone. If this level holds, further gains toward the 161.8% Fibonacci extension target of $74,170 remain possible. However, a break below this range could lead to a pullback toward around $69,270.
Leverage remains a risk factor. The current funding rate stands at 0.0041491% in positive territory, reflecting a concentration of long positions. Excessive leverage could trigger a sharp pullback following a short squeeze—buying activity driven by the liquidation or covering of short positions. If funding rates shift резко or turn negative, expanding liquidations could heighten short-term volatility.
Ultimately, the sharp rally reflects a combination of macro liquidity expectations and a technical breakout. Whether Bitcoin can defend the $68,700 level will likely determine the sustainability of the trend.
Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.