Bitcoin Dips Below $70,000 Again: Analyzing Three Key Factors

Bitcoin's price has recently fallen back below the $70,000 mark, leading to a noticeable pullback in market sentiment. On-chain data and trading indicators suggest that concentrated profit-taking by short-term holders, decreased demand on US trading platforms, and contracting buying liquidity are collectively exerting downward pressure on the price.

According to on-chain analysis, a significant number of short-term holders chose to move profits to exchanges as Bitcoin's price approached $70,000. The scale of these outflows is among the largest since November 2025. The average holding cost for these investors is around $68,000, indicating that their primary profit-taking occurred during the recent week-to-month rally. Simultaneously, the spot market's net fund flow (CVD) fell to -$202 million, and perpetual contract fund flows also declined to -$186 million, reflecting a significant weakening of buying power in the market.

The premium index of Coinbase, a major US trading platform, also sends a similar signal. On March 4, when Bitcoin surged to $73,000-$74,000, the index briefly exceeded 0.08, indicating strong local buying enthusiasm. However, as prices retreated, the premium quickly turned negative, suggesting a clear cooling of willingness to enter the market among US retail and institutional investors, which is putting substantial pressure on prices.

From a technical perspective, the current price is oscillating around the $67,000-$68,000 range, which is considered the core support for the short-term trend. If the price can stabilize in this range, it may accumulate momentum for the next upward move. Traders are closely watching the deeper liquidity support level at $66,500, and effectively holding this position could become an important node for price reversal.