Bitcoin Price Maintains Above $66K Support Following ETF Surge: Can It Reach $70K Again?

Bitcoin bulls have successfully defended the $66K support level as the leading cryptocurrency experienced a partial reversal of its remarkable gains from yesterday. This surge was driven in part by a notable increase in ETF inflows.

Key Takeaways

Bitcoin defended the $66K support level after price fluctuations.
A 7% increase took Bitcoin's price close to $70,000, boosted by strong ETF inflows and positive tech earnings.
Investors reacted to market movements, leading to some profit-taking and price retracement.
Analysts caution potential continuation of a larger downtrend with critical support at $65,000.

Bitcoin prices surged almost 7% to roughly $70,000 on Thursday, driven by improved investor sentiment toward risk assets. This optimism followed the release of an upbeat earnings report from Nvidia, which helped lift tech stock prices. Typically, rising equity prices can trigger a shift towards riskier investments like cryptocurrency.

Supportive of this rally, institutional demand for spot Bitcoin ETFs also played a significant role. Data shows that the 12 U.S. spot Bitcoin ETFs generated $506 million in net inflows on February 25, nearly double the previous day's figures.

Following its move to $70K, Bitcoin's price dipped nearly 4% to $66,641. This pullback coincided with a 2% decrease in Nasdaq, as investors took profits after the stock market rally ahead of the earnings report, creating a cooling effect across financial markets.

Despite its recent rebound above $67,500, with Bitcoin attempting to reclaim the $70K milestone again, some analysts warn of ongoing downtrend patterns that have been present since early January. Analyst Ted Pillows noted that Bitcoin appears to be creating a recurring fractal pattern historically indicative of downturns.

BTC/USDT 1-day chart. BTC/USDT 1-day chart | Source: X/TedPillows

Pillows stated, “Once more people are convinced $60,000 was the bottom, the next dump to a new low will start,” in a February 26 post on X.

Currently, Bitcoin is showing a bearish flag pattern on the daily chart, characterized by an initial sharp price decline followed by a period of consolidation within two parallel lines.

Bitcoin price has formed a bearish flag pattern on the daily chart — Feb. 27 | Source: crypto.news

Historically, bearish flags often confirm the continuation of an ongoing downtrend following brief consolidation periods.

As of now, additional technical indicators suggest that bears currently hold an advantage. Specifically, the Aroon Down indicator is at 78.55, significantly higher than the Aroon Up, indicating bearish market dominance.

Furthermore, the Relative Strength Index (RSI) is approaching neutral thresholds, which hints at the possibility of more downward pressure before Bitcoin reaches oversold levels.

Presently, the key support level to monitor is at $65,000. This level has served as a psychological defense line for almost three weeks and appears robust, with numerous buy orders and long positions accumulating in this range. However, a significant fall below the $65K mark could prompt bears to aim for $60K, a level they attempted to surpass during the February 6 crash.

Bitcoin price maintains above $66K support following ETF surge: Can It Reach $70K Again?

Bitcoin's price climbed nearly 7% to about $70,000 on Thursday, bolstered by investor optimism in risk assets, particularly following a positive earnings report from Nvidia that led to a spike in tech stock prices. However, after reaching the $70K mark, Bitcoin's price slightly retraced, indicating profitability-taking among investors. Analysts suggest the cryptocurrency may be facing a larger downtrend, with key support levels lined up at $65,000.