According to Cointelegraph: The Bitcoin price retracted at the $71,000 level amidst wavering confidence among professional traders. March 27 saw a moderate BTC correction to $68,430 after an unsuccessful attempt to surpass the $71,000 mark. Over the past week, Bitcoin derivatives data pointed to a decline in bullish sentiment, suggesting a break of key support at $69,000.
Bitcoin's price displayed a notable rally from $63,800 to $70,000 leading up to March 27, despite only $151 million of leveraged short positions being forcibly closed on the BTC futures markets. This pattern implies skeptical bears, even after last week's considerable $888 million net withdrawal from U.S. Bitcoin spot exchange-traded funds (ETFs).
Despite the pressures, Bitcoin proved resilient in its recovery from a 17.6% plunge from $73,757 on March 14 to $60,795 on March 20. Some believe the major driver for BTC reaching new heights before the upcoming April Bitcoin halving was the unexpected surge of inflows into spot ETFs.
On a brighter note for Bitcoin enthusiasts, spot ETF flows saw an encouraging reversal this week, recording a total of $418 million in net inflows on March 26. Significantly, this wasn't due to reduced outflows from Grayscale's GBTC, suggesting genuine institutional demand amid Bitcoin's price lingering just 4% below its peak.
Concerns related to global economic downtrends, uncertainty surrounding U.S. Federal Reserve's future interest rate decisions, and increasing regulatory pressures are among the factors contributing to the weakening of Bitcoin prices. The shift away from leveraged BTC long positions, for instance, is likely a reflection of the increasing apprehension about broader economic recession threats and external pressures, such as the U.S. Justice Department's charges against KuCoin exchange recently and discussions on crypto payment limitations by the European Parliament's committee.
