Bitcoin price tussle at $70K may hint that market bottom is not in

Bitcoin price dipped under $70,000, but a bull-friendly set-up on the lower time frames forecasts a swift rebound.

Bitcoin (BTC) dropped below $69,000 on Thursday, pulling the price back into its six-week range just days after tapping range highs above $76,000.

The pullback coincides with an increase in selling from Bitcoin futures markets and stalling demand from US-based investors, but the chance for a rebound rally remains. A recurring chart setup indicates that BTC can return to its bullish pathway if the necessary conditions are met.

The latest pullback aligns with a visible shift in derivatives’ dominance over spot activity. The Coinbase premium gap turned negative after a period of steady demand, pointing to weak follow-through from US-based investors.

Meanwhile, crypto analyst IT Tech noted a clear imbalance between the spot and perpetual futures. The cumulative volume delta (CVD), which tracks the net buying versus selling across markets, fell by $40.64 million for the spot CVD, while the perpetual CVD dropped by $506.75 million, highlighting stronger selling pressure from leveraged traders.

However, the funding rates have flipped positive to 0.05%, meaning long positions are now paying shorts, indicating a long bias across the derivatives markets.

The order book data shows bid-side support holding near the $70,000 region, with both spot and perpetual markets leaning toward buyers.

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On the lower timeframes, Bitcoin is forming a similar fractal setup to the March 6 through March 8 correction when the price declined and swept internal liquidity levels before reversing higher on the charts. 

The current move follows the same sequence, with successive lower lows developing into a potential exhaustion phase for the price.

In the prior breakout, the reversal aligned with a bullish divergence on the relative strength index (RSI) indicator, where RSI held equal lows as the price printed a lower low. The pattern signaled a fading momentum from sellers. A comparable divergence is now developing, reinforcing the bullish fractal structure.

The liquidation data also supports this setup. Significant long-side liquidations have been observed on both occasions, reducing the open interest and flushing out overleveraged positions. 

A swift reclaim of $70,000 aligns with the previous fractal recovery path, opening a move toward $76,000. The $72,000 level acts as the key pivot, where a reclaim may trigger a short squeeze if short positions get trapped.

However, the setup remains time-sensitive. A breakdown below $68,300 shifts focus toward the $65,000 and $62,000 levels, where higher time frame liquidity sits for BTC.

Trading Stables founder Ryan Scott flagged $73,000 as a key base level, noting that failure to stabilize above this level signals a weak buyer response, raising the chance for a drop to range lows near $62,000.

Related: Bitcoin prediction markets see 70% chance BTC price crashes to $55K in 2026

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Source: CoinTelegraph