Bitcoin (BTC) is trading sideways at around the $68,000 level after a volatile week. The cryptocurrency is in a corrective phase after a sharp sell-off. The short-term structure of Bitcoin tightened. Now, investors await a clear break to confirm whether Bitcoin is rising or falling further.
As of press time, on Tuesday, March 3, Bitcoin (BTC) is trading at $68,013, marking a 2.76% increase in a day. The trading volume is showing a strong bullish surge, up 41.31%, and is currently standing at $54.51 billion. Over the last week, the BTC coin price has gone up by 8.17%, according to CoinMarketCap.
Source: CoinMarketCap
The institutional demand is showing signs of improvement. According to SoSoValue data, spot Bitcoin ETF inflows were recorded at $458.19 million in the recent week. This comes after five weeks of withdrawals. Analysts view this as a positive sign for BTC, which might help the asset recover in the coming sessions.
Source: SoSoValue
Bitcoin Faces Crucial Resistance Test
Analyst CryptoPulse highlighted that Bitcoin must hold above $67.3K to ensure a stable situation. This would give the opportunity to test the $71K-$72K resistance zone. This zone is considered a key resistance zone for the bullish trend to continue.
A breakout above this zone can lead to the $79K-$81K zone. This zone is considered the next key resistance zone. Traders consider these levels to be key levels where sell pressure can resume. The broader trend still leans bearish, but momentum could shift if resistance levels break.
Source: X
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Moreover, another analyst, Crypto Candy, mentioned that Bitcoin has been in a range. The price has been oscillating in the $60K to $70K zone over the last few weeks. This indicates that there is no major move in either direction. Bitcoin has recently moved to the $62K zone and then back to the $70K zone again.
The analyst had a bearish bias on BTC until it flipped around the $71K zone. There could be a move to the $61K zone or lower if resistance is present.
However, this bias is valid as long as BTC is trading below the $71K to $72K zone. Conviction in the market is largely based on this zone.
Source: X
Futures Volume and Open Interest Rise
CoinGlass data shows rising activity. The future volume increased by 42.28% to $85.84 billion. However, the open interest grew by 3.91%, reaching $44.46 billion. The OI Weighted Funding Rate is at 0.0017%, which is neutral.
Source: CoinGlass
The crypto king is at a turning point. Its consolidation is getting tighter. The next move will be crucial for the market. Traders expect a volatile market after the price breaks its current consolidation.
Also Read: Bitcoin (BTC) Faces Explosive Liquidity Clash As $75K and $54K Zones Heat Up