Nexo Analyst Flags This Bitcoin Price Blocker — Why Crossing $70,000 Is Critical Now
Bitcoin's recovery stalls below $70,000 due to weak conviction, low volume, and significant supply resistance, making the $70,800 level critical for a confirmed breakout.Summary
Despite Bitcoin briefly touching $70,000 and recovering nearly 12% from recent lows, the rally lacks conviction needed for a sustained breakout, according to Nexo Research Analyst Dessislava Ianeva. While the Smart Money Index signals early positioning and technical patterns like the cup and handle suggest bullish potential, key indicators show weakness. Trading volume has dropped over 58% compared to earlier in February, and open interest has fallen by 43%, indicating subdued market participation and a lack of aggressive buying pressure. Furthermore, long-term holders continue to sell supply rather than accumulate, signaling weak conviction amidst ongoing macroeconomic uncertainty.
The immediate barrier is the supply cluster between $70,000 and $70,800, identified via URPD data, where investors who bought earlier are likely selling to break even. Crossing and holding above $70,800 is critical because supply thins out significantly afterward, potentially leading to the next major target near $78,600. However, if Bitcoin falls below $65,700, the bullish structure is threatened, and a drop below $62,400 would invalidate the pattern.
(Source：BeInCrypto)