Bitcoin price reversed course at the $71,000 level as professional traders' confidence began to waver.
Bitcoin (BTC) price faced a moderate correction to $68,430 on March 27 after failing to break above the $71,000 mark. Data from Bitcoin derivatives data reveal a decline in bullish sentiment among professional traders over the past week, which could possibly indicate that the $69,000 level will not hold.
Despite a rally from $63,800 to $70,000 in the five days leading up to March 27, only $151 million in leveraged short positions were forcibly closed in the BTC futures markets. This suggests that bears remained cautious, even in light of last week's significant $888 million net withdrawal from U.S. Bitcoin spot exchange-traded funds (ETFs).
On a positive note, Bitcoin has demonstrated resilience by recovering from a 17.6% drop from $73,757 on March 14 to $60,795 on March 20 without causing panic among spot ETF investors. However, some market observers argue that the primary driver behind BTC reaching a new high before the April Bitcoin halving was the unexpectedly high inflows into spot ETFs, highlighting the importance for bulls to monitor such trends.
