The price of Bitcoin surged close to $71,000 on Tuesday, triggering a wave of short liquidations and boosting market momentum. However, analysts warn that the cryptocurrency could face another price dip after a liquidity sweep near $72,000, as heavier liquidity clusters remain below the current market level.
According to market data from TradingView, BTC/USD hovered around $70,780, marking a 4.5% increase in the past 24 hours. The recent rally liquidated approximately $186 million worth of short positions, indicating strong buying pressure as traders reacted to geopolitical developments and market sentiment.
Analysts note that liquidity in the $70,000–$72,000 range is relatively thin, meaning the price could briefly push upward to capture liquidity before reversing. Larger liquidity clusters are positioned between $64,000 and $68,000, making this zone a potential target if the market corrects after testing higher levels.
Market indicators show improving momentum. The Relative Strength Index (RSI) has recovered to 52, rising from 30 earlier in March, signaling renewed buying activity. Additionally, spot trading volume jumped from $3.38 billion to $9.3 billion, reflecting stronger demand in the market.
Institutional interest remains a key support factor. Spot Bitcoin ETFs recorded $934 million in weekly net inflows, with trading volumes increasing to $23.1 billion. Analysts say this highlights sustained engagement from traditional financial institutions and growing confidence in the cryptocurrency sector.
Crypto analyst CW8900 also noted that “net buying” activity is occurring across major exchanges, which indicates genuine market demand rather than speculative spikes.
Over the past month, Bitcoin investment products have continued to attract strong inflows while gold ETFs experienced notable outflows, suggesting that some investors may be shifting capital from traditional safe-haven assets toward digital assets like Bitcoin.
