 ▲ Bitcoin (BTC) / ChatGPT-generated image |
Bitcoin (BTC) attempted a recovery by rebounding to the $74,000 level but is once again facing downward pressure as short-term investors pour out profit-taking sell orders.
According to a March 7 report by crypto media outlet NewsBTC, Bitcoin climbed to $74,050 last Thursday, sparking hopes of a rebound. However, short-term holders—considered the market’s most sensitive cohort—are using the rally as a selling opportunity. Citing on-chain data, NewsBTC reporter Jake Simmons analyzed that whenever Bitcoin tries to stabilize, supply overwhelms buying pressure.
Darkfost, a contributor to on-chain analytics platform CryptoQuant, revealed that over the past 24 hours, short-term holders have deposited more than 27,000 BTC in profit to exchanges. This marks one of the largest spikes recorded in recent months. Despite Bitcoin’s modest recovery, Darkfost noted that short-term investors appear unconvinced by the rebound and are showing a tendency to lock in profits quickly.
This wave of selling is concentrated among investors who entered the market within the past month. Their realized price is formed around the $68,000 level, making the rebound to the low $70,000 range a sufficient incentive for immediate profit-taking. The currently negative short-term macroeconomic outlook is also seen as fueling their reactive trading patterns.
From a technical perspective, repeated failures to break above the upper boundary of the range are forming a consistent pattern. Maartunn, another CryptoQuant contributor, explained that in recent months Bitcoin has broken through key resistance levels only to reverse shortly afterward on three occasions. He warned that liquidity forming above the $71,000 range high is primarily being used by sellers as an exit point, suggesting the latest rebound could become a trap for late long-position entrants.
Analysts point out that Bitcoin must break above $74,500 to confirm a clear trend reversal. Currently trading around $70,127, Bitcoin is testing support levels. Market participants are preparing strategies under the expectation that volatile range-bound trading will persist until selling pressure from short-term holders subsides and macroeconomic uncertainties ease.
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