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- Bitcoin reclaimed $70K, triggering $186M in short liquidations and strengthening bullish momentum.
- Spot trading volume and ETF inflows surged, signaling renewed institutional demand.
- Analysts are watching $72K and $75K liquidity zones as the next potential targets.
Bitcoin surged back above the $70,000 mark on Tuesday, wiping out a wave of short positions and signaling renewed momentum in the crypto market. The move comes as traders reacted to geopolitical commentary from Donald Trump regarding tensions involving Iran, which added volatility to global markets.
At the same time, growing institutional demand and strong spot market activity are strengthening the case for a continued Bitcoin recovery. Analysts now say the next key liquidity zone sits near $72,000, where price could test the next cluster of orders.
Short Liquidations Fuel the Latest Bitcoin Rally
The latest rally triggered significant liquidations in the derivatives market. Data shows that roughly $186 million in short positions were wiped out as Bitcoin pushed above $70,000, forcing bearish traders to exit their positions.
Liquidation heatmaps indicate that the area between $70,000 and $72,000 currently has relatively thin liquidity. When liquidity is thin, price can move quickly through that range as orders are filled. This setup has led analysts to suggest that Bitcoin may briefly spike toward $72,000 to capture remaining liquidity before establishing its next direction.
Beyond that level, another major liquidation cluster sits near $74,000–$75,000. If momentum continues to build, this zone could become the next battleground between bulls and bears.
However, traders also note that deeper liquidity exists on the downside. Large clusters between $64,000 and $68,000 could act as a magnet for price if the current rally loses strength.
Momentum Indicators Signal Improving Market Sentiment
Technical indicators show signs that Bitcoin’s momentum is strengthening after a recent correction. The 14-day Relative Strength Index (RSI) has climbed from around 30 earlier this month to above 50, indicating a shift from oversold conditions to a more neutral momentum zone.
Spot trading activity is also rising sharply. Daily spot trading volume jumped to roughly $9.3 billion, a significant increase from around $3.38 billion just days earlier. This surge suggests that real buying demand — not just derivatives trading — is returning to the market.
ETF Demand and Institutional Flows Strengthen the Bull Case
Institutional demand remains one of the strongest drivers behind Bitcoin’s current momentum. Spot Bitcoin exchange-traded funds have attracted substantial inflows in recent days, with weekly net inflows reaching about $934 million.
Trading volumes across these funds also rose significantly, surpassing $23 billion. Analysts say this indicates continued engagement from traditional financial institutions and large investors.
Interestingly, capital appears to be rotating out of gold-focused investment products and into Bitcoin-related funds. Some market observers see this shift as a sign that institutional investors increasingly view Bitcoin as a long-term store of value.
Meanwhile, authorities in South Korea recently sold 320.8 Bitcoin that had been recovered after a phishing-related custody error. Prosecutors from the Gwangju District Prosecutors’ Office liquidated the assets gradually over 11 days to avoid disrupting the market.
The cryptocurrency had originally been seized from an illegal gambling operation and was temporarily lost during a custody transfer before being returned earlier this year. Officials ultimately transferred roughly $21.5 million from the sale into the national treasury.
Also Read: Bhutan Moves $11.8M in Bitcoin as Key BTC Indicator Flashes Rare ‘Value Zone’ Signal
Bitcoin’s rebound above $70,000 highlights improving momentum across both spot and institutional markets. With short liquidations accelerating, ETF inflows climbing, and trading activity surging, bullish pressure appears to be building again.
Still, liquidity clusters both above and below the current price suggest that volatility may remain high in the short term. Whether Bitcoin pushes toward $72,000 and beyond — or revisits lower liquidity zones — will likely depend on how strong buying demand remains in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
