 ▲ Bitcoin (BTC) |
An analysis has suggested that Bitcoin (BTC) could decline again after securing liquidity around the $72,000 level.
According to Cointelegraph on March 10 (local time), Bitcoin has reclaimed the $70,000 range, with order book liquidity showing signs of growth. Market participants expect Bitcoin to absorb liquidity near $72,000 as the next step. Liquidation heatmap analysis indicates that the supply zone between $70,000 and $72,000 has relatively thin liquidity, making it easier to break through. Afterward, the price could move toward a larger liquidity cluster between $74,000 and $75,000.
Experts suggest that once the liquidity around $72,000 is absorbed, there is a strong possibility that Bitcoin could fall back below $70,000. Analysts pointed out that a significantly larger liquidity cluster—about four times greater than the current upper range—has formed between $64,000 and $68,000. From a liquidity perspective, after confirming upper resistance, Bitcoin is more likely to revisit the lower zone where deeper capital is concentrated. CoinGlass data also shows that the largest short-position liquidation cluster on a weekly basis lies between $74,000 and $75,000.
Signs of a price rebound are also visible in technical indicators. According to on-chain analytics firm Glassnode, Bitcoin’s 14-day Relative Strength Index rose from around 30 on March 1 to 52 as of Tuesday, signaling a recovery. The Bitcoin spot ETF market is also maintaining strong momentum. Net inflows into spot ETFs accelerated to $934 million, while trading volume increased from $16 billion last week to $23.1 billion this week. Glassnode analysts noted that these inflows reflect sustained institutional demand and increased participation from traditional financial institutions.
CW8900, a cryptocurrency investor and analyst, stated that net buying has occurred across all major exchanges, calling it a positive sign backed by genuine spot demand. Over the past 30 days, Bitcoin ETFs recorded net inflows, while gold ETFs experienced record outflows, highlighting a shift in capital flows within the market. Investors are closely watching the depth of any correction that may follow after Bitcoin absorbs upper liquidity and are preparing their response strategies accordingly.
Bitcoin is currently testing support near $71,000 while attempting to break through upper resistance. Although abundant market liquidity and institutional inflows support a long-term bullish outlook, the possibility of a short-term price correction toward lower liquidity clusters remains valid.
Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.