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Bitcoin defends $66K as ETF inflows resume
Bitcoin bulls successfully protected the $66,000 area after a pullback that followed a fresh wave of ETF-driven demand. The flagship crypto climbed toward the $70,000 mark earlier in the week, supported by renewed institutional interest in spot Bitcoin ETFs and a broader risk-on mood after strong tech earnings.
The market’s short-term momentum was helped by a bullish Nvidia report that boosted tech stocks and sparked risk appetite across asset classes. Equity gains often encourage capital to rotate into high-beta assets like BTC, and institutional flows into U.S. spot Bitcoin ETFs have been a clear catalyst this month.
On Feb. 25, data showed the 12 U.S. spot Bitcoin ETFs recorded roughly $506 million in net inflows, nearly double the prior day’s figure. Spot ETF inflows continued the next session with about $254 million entering funds, helping Bitcoin attempt a reclaim of the $70K threshold.
Price action and intraday moves
Bitcoin surged nearly 7% to approximately $70,000 before a profit-taking leg pushed price down roughly 4% to about $66,641. That retracement coincided with a small pullback in the Nasdaq as traders booked gains after the earnings-fueled rally. After the dip, BTC recovered above $67,500 as buyers stepped back in and ETFs continued to attract capital.
BTC/USDT 1-day chart
Despite the rebound, sentiment among some market technicians remains cautious. Several analysts warn that the broader downtrend that began in early January could persist until a clear structural reversal is confirmed.
Technical picture: bearish flag and momentum readings
The daily chart shows a bearish flag — a pattern formed by a sharp decline followed by a narrow upward consolidation inside parallel trendlines. Historically, bearish flag setups often resolve to the downside, extending the prior fall after consolidation completes.
Bitcoin price has formed a bearish flag pattern on the daily chart — Feb. 27
Key momentum indicators also lean toward sellers. The Aroon Down indicator was substantially higher than the Aroon Up, signaling that bearish trend components remain dominant. The Relative Strength Index (RSI) has drifted toward neutral territory, implying there is room for further downside before BTC becomes oversold.
For now, $65,000 is the critical support to monitor. That level has acted as a psychological floor and a cluster of buy orders and long positions has accumulated around it over recent weeks. A decisive break beneath $65K could see bears aim for the $60K zone, which previously served as a focal point during the early February sell-off.
Outlook and what traders should watch
- ETF flows: Continued strong inflows into spot Bitcoin ETFs would help underpin higher prices and increase the odds of a sustained push above $70K.
- Technical confirmation: Bulls ideally need BTC to clear and hold above $70,000 with volume to validate a bullish breakout from the current consolidation.
- Macro and equities: Further strength in tech stocks and a persistent risk-on environment would likely support crypto demand; conversely, sudden equity sell-offs could pressure BTC.
- Indicator thresholds: Watch the Aroon readings and RSI for clues on momentum shifts. If Aroon Up turns sharply higher while Aroon Down falls, it would signal a potential trend change.
Some strategists caution that market psychology can flip quickly. One analyst has suggested that once the crowd accepts $60,000 as the bottom, a renewed leg lower could materialize if sentiment reverses. That view underscores the continued importance of watching support levels and ETF flow dynamics.
In summary, Bitcoin remains above a key $66K support after a renewed ETF-driven bid, but technical patterns and momentum indicators favor caution. Traders should monitor ETF inflows, $65K support, and a confirmed break above $70K to gauge whether the recovery will sustain or give way to further consolidation or declines.
Source: crypto
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