Bitcoin (BTC) has fallen below $70K after a three-day streak, currently trading at $68,131 (down 3.96% in 24 hours).
Recent data from CryptoQuant indicates a spike in Bitcoin selling pressure among short-term holders (STHs), with panic-led selling resulting in over 27,000 BTC being sold for profit on exchanges in the last 24 hours.
Analysts are speculating on a possible capitulation phase following the formation of a new death cross on March 3, where the 50-day moving average crossed below the 200-day average, signaling bearish momentum.
Is Bitcoin entering a capitulation period?
The historical significance of a death cross suggests a potential upcoming capitulation phase for Bitcoin, supported by metrics such as the Bitcoin Exchange Whale Ratio (EWR) and decreasing open interest.
Additional bearish indicators include a drop in Bitcoin’s open interest and rising liquidations, coupled with recent outflows from Bitcoin spot ETFs and institutional challenges in the crypto lending space.
What Next?
Bitcoin could consolidate between $68-$70K if it maintains above the $67,757 support level, with a potential downside risk to $65K. Market participants are also anticipating reactions to the upcoming US Federal Reserve policy announcement on March 18.