Bitcoin<\/a> rose above $70,000 today for the first time since early February, extending a rebound that is starting to look less like a brief relief rally and more like a market trying to reverse momentum after months of heavy selling.<\/p>\n CryptoSlate<\/em> data showed Bitcoin gaining over 7% on the day, lifting the flagship digital asset to its highest level in almost a month. The move came amid renewed geopolitical tension over Iran, a backdrop that has kept volatility elevated across global markets.<\/p>\n Update (March 5, 2026, 10:30 UTC):<\/strong> Bitcoin has continued climbing after publication, briefly trading above $73,000 and touching roughly $74,000 in early March trading as ETF inflows and renewed institutional demand helped extend the rebound, though analysts still caution that sustained acceptance above the $70,000 zone remains unresolved.<\/em><\/p>\n What makes the latest bounce notable is not only the headline price move. It is the condition Bitcoin was in before the rebound started.<\/p>\n Vetle Lunde, the head of research at K33 Research, said Bitcoin had entered the previous weekend heavily oversold, heavily shorted,<\/a> and significantly underowned.<\/p>\n That matters because Bitcoin was already trading under very different conditions from gold, stocks,<\/a> and other major assets before the latest Middle East escalation added a new layer of uncertainty.<\/p>\n According to K33, Bitcoin had fallen 50% after five consecutive months of downside price action. Its weekly relative strength index had dropped to its third-lowest reading ever<\/a>.<\/p>\n In other words, Bitcoin entered the week in an unusually stretched state, one that looked statistically abnormal even before geopolitical stress became the dominant market theme.<\/p>\n That backdrop is central to the reversal argument now taking shape.<\/p>\n K33\u2019s case<\/a> is that Bitcoin was vulnerable to a sharp move higher because positioning had become too one-sided.<\/p>\n Institutional investors had already reduced exposure considerably during the previous months of selling pressure.<\/p>\n For context, spot Bitcoin ETFs<\/a> had endured nearly 100,000 BTC in outflows, while notional CME open interest had fallen 30% from October levels.<\/p>\n That meant one of the investor groups most likely to use Bitcoin as a hedge against uncertainty had already stepped back, allowing some of the asset\u2019s usual correlations to soften.<\/p>\n At the same time, crypto-native positioning had become unusually defensive. K33 said funding rates in perpetual futures had been unusually low, and that throughout February, traders had paid premiums to sit short.<\/a><\/p>\n That is atypical behavior for Bitcoin, an asset that tends to maintain a structural long bias over time.<\/p>\n The firm said similar funding-rate regimes have often appeared during bottoming phases, reflecting crowding, imbalances, and signs of seller exhaustion.<\/p>\n Notably, the options markets were sending a similar message. In February, skews jumped to levels seen only during the worst panic periods of 2022, including the collapses linked to Luna, Three Arrows Capital, and FTX.<\/p>\n There were signs from the chain as well. K33 pointed to long-term holder distribution subsiding as Bitcoin lost support at $75,000 and approached its 200-week moving average.<\/p>\n Taken together, the setup was one of an asset that had already absorbed a large amount of bad news, washed out leverage and sentiment, and was increasingly positioned for a sharp reversal if selling pressure eased.<\/p>\n The reversal thesis has gained traction in part because Bitcoin has held up better than some expected, given the broader stress building around it.<\/p>\n Data<\/a> from CryptoQuant showed that US tensions with Iran have continued to escalate, with oil and gas trade flows becoming more complex,<\/a> while gas prices in Europe surged by more than 70%, and South Korean stocks fell another 12% on the day.<\/p>\n Yet within that environment, Bitcoin broke above $71,000 and reclaimed the $70,000 level.<\/p>\n That resilience is not being read as a random bounce. CryptoQuant said it was supported by five days of inflows into spot Bitcoin ETFs<\/a> over the last six trading days. During that period, cumulative inflows into the spot Bitcoin ETFs exceeded $1.6 billion.<\/p>\n Derivatives have also started to reawaken. CryptoQuant said Binance\u2019s taker buy-sell ratio reached 1.18, the highest level of the year.<\/p>\n That metric measures the balance between aggressive buy and sell activity in the derivatives order book, and the latest reading suggests buyers are starting to regain control after a long stretch in which selling pressure dominated.<\/p>\n The pace of buying was notable. CryptoQuant said taker buy volume exceeded $1 billion per hour several times in a single day, helping push Bitcoin above $71,000.<\/p>\n Moreover, additional data<\/a> from K33 showed that notional open interest on Binance\u2019s BTCUSDT perpetual contract rose by 7,547 BTC over the previous four hours, marking the first four-hour growth of that magnitude since 2023.<\/p>\n The implication is that derivatives traders, who had spent weeks leaning heavily bearish, were suddenly being forced to respond to strength.<\/p>\n So, if ETF inflows continue and derivatives buyers maintain the upper hand, the firm said a short-term reaction higher would not be surprising.<\/p>\n This is where the current story becomes more nuanced. The rebound is not simply about spot demand returning. It is also about the way a deeply oversold market can move when short positioning becomes crowded and aggressive buyers start to press back.<\/p>\n Another reason analysts see scope for a broader momentum turn is that US investors appear to be reengaging with the market<\/p>\n Notably, CryptoSlate <\/em>previously reported that US investors were leading the current phase of Bitcoin buying.<\/a><\/p>\n CryptoSlate Daily Brief<\/span><\/p>\n Market-moving headlines and context delivered every morning in one tight read.<\/p>\n 5-minute digest<\/span> 100k+ readers<\/span><\/p>\n<\/div>\n Free. No spam. Unsubscribe any time.<\/p>\n You\u2019re subscribed. Welcome aboard.<\/span><\/p>\n<\/div>\n<\/div>\n One of the clearest signs came from the Coinbase Premium Index, which turned positive in February 2026. Since then, Bitcoin has risen 15% and reclaimed $71,000, a level it had not seen in 27 days, according to CryptoQuant data<\/a>.<\/p>\n The signal matters because the Coinbase Premium Index is often used as a gauge of US-led spot demand.<\/p>\n When it turns positive and stays there, it suggests buyers on Coinbase are willing to pay more than traders on offshore venues, often a sign that the US appetite is strengthening.<\/p>\n In this case, the index turned positive and has held that zone roughly one week ago on the hourly timeframe, before the latest leg higher unfolded.<\/p>\n If the premium remains positive, it would reinforce the idea that the rally is not just a derivatives-driven squeeze but a broader recovery in demand.<\/p>\n Despite these moves, this does not mean the market has cleanly broken through resistance.<\/p>\n Crypto analytics firm Glassnode said perpetual open interest posted its largest daily percentage increase since July 2025 as leverage expanded while Bitcoin tested about $69,400.<\/p>\n That level has consistently served as a rejection zone for BTC during periods of intensified profit-taking by traders.<\/p>\n![\"bitcoins](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/03\/HCjtEdMawAI_D23.png\" "\\"bitcoins\\"")
Bitcoins A market already primed to snap back<\/h2>\n
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Bitcoins Why resilience matters in this macro backdrop<\/h2>\n
![\"bitcoins](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/03\/Screenshot-2026-03-04-131352.jpg\" "\\"bitcoins\\"")
![\"bitcoins](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/03\/HCj3fzIWAAA_UZ0.jpg\" "\\"bitcoins\\"")
Bitcoins The reversal signal is coming from US demand<\/h2>\n
Daily signals, zero noise.<\/h3>\n
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Bitcoins The $70,000 zone is still contested<\/h2>\n
![\"bitcoins](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/03\/HCfah-1WAAA09L2-scaled.jpg\" "\\"bitcoins\\"")