Bitcoin Breaches $70,000 Key Support, Weekly Chart Reveals True Market Sentiment

On March 6th, Bitcoin's price slipped to $69,640, breaking below the significant psychological and technical level of $70,000 for the first time. This decline followed a robust three-day rally that saw the price surge from $63,600 to $73,800, marking a weekly gain of over 15%.

Looking back to the movements since February 24th, Bitcoin initially hovered around $86,000 before entering a mild correction phase. The decline accelerated on February 28th, hitting a weekly low of $63,600, which became the turning point for the entire week's trading. Subsequently, the market exhibited typical short-covering characteristics: the price rebounded to $69,200 on February 26th before testing lower again, but each rally established a higher support level. By March 2nd, the market structure had subtly shifted, setting the stage for the explosive surge on March 4th. On that day, Bitcoin, driven by a single candlestick with maximum trading volume, soared from $65,800 to $73,800, a rapid move with no apparent consolidation. However, such rapid ascents are often unsustainable. Since hitting its high on March 5th, Bitcoin has entered a sustained correction, successively breaching the major psychological levels of $72,000, $71,000, and $70,000. Each level that briefly supported the price ultimately became a springboard for the next leg down. $70,000 is not only a technical level but also a watershed for market sentiment. The options market has a significant concentration of strike contracts at this level, institutions set their stop-loss orders based on it, and retail investors view it as a psychological anchor. When the price is above this level, the market generally interprets it as a "recovery continuation"; once breached, the sentiment shifts to "risk reassessment." The current intraday low of $69,644 marks the first break below this key level since the March 4th rally. The upcoming movements may be influenced by the non-farm payroll data. If the data is strong, a stronger dollar could further suppress risk assets; if the data is weak, it could reignite expectations of interest rate cuts, attracting buyers back into the market. The current market sentiment indicator, the Fear and Greed Index, is only at 18, in the "Extreme Fear" zone, indicating that the market has not established a clear bullish stance regardless of the subsequent direction. After rebounding 15% from the bottom within a week, market sentiment has returned to square one, reflecting the fragility of investor confidence and high volatility.