Bitcoin

Bitcoin holds $70K, but BTC bull market isn’t back: Here’s why

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Bitcoin climbs toward $73K amid rising Coinbase Premium and liquidations, yet weak participation hints the rebound may lack structural strength

Posted: March 6, 2026 Avatar

By: Muriuki Lazaro Journalist Edited By: Jacob Thomas Avatar

Muriuki Lazaro Journalist Edited By: Jacob Thomas Posted: March 6, 2026 Share this article

Bitcoin’s [BTC] rebound toward $73,000 reflects a cooling of aggressive sell pressure rather than a revival of broad market demand.

Even so, the Bull Score Index remained near 10, at press time. This shows that overall network participation remains weak.

Earlier in the cycle, Bitcoin advanced from roughly $60,000 to above $120,000 while the Bull Score repeatedly climbed above 60. During that period, capital inflows, derivatives expansion, and spot demand aligned to sustain the rally.

However, conditions deteriorated after the mid-2025 peak as macro risk and profit-taking triggered a gradual withdrawal of liquidity, leading to a significant decline in market confidence and further worsening the demand contraction.

These events led to a sharp drop in Bitcoin’s price and heightened market volatility.

Source: CryptoQuant

As weaker holders exited, demand contraction narrowed sharply from about -136,000 BTC to nearly -25,000 BTC. At the same time, long-term holder selling fell roughly 70% since November 2025, indicating that major distribution pressure has slowed. This reduction in supply allowed the price to stabilize.

Yet broader participation has not returned. Institutional positioning and derivatives activity remain subdued, keeping the Bull Score low. This reflects weak investor confidence and suggests market conditions are still unfavorable for a sustained upward trend.

Therefore, the current rebound likely reflects seller exhaustion and short-term positioning, rather than the start of a structurally supported bull phase.

Coinbase Premium flip hints at…

Bitcoin’s structure still appears fragile, reflecting weak market-wide conviction. Even so, spot demand dynamics have begun shifting. The Coinbase Premium Index recently flipped positive after nearly 40 consecutive days in negative territory.

Source: CryptoQuant

Earlier, the Premium frequently dropped below -0.15, aligning with Bitcoin’s slide from roughly $95,000 toward the mid-$60,000 range. Those persistent negative readings indicated that U.S. participants were leading the sell pressure during the downturn.

As the decline matured, Bitcoin stabilized near $70,000 while the premium gradually climbed toward the zero line. Its move into positive territory suggests U.S. buyers have begun absorbing supply again.

Yet with the Bull Score still deeply bearish, this accumulation likely signals early stabilization rather than a confirmed bullish reversal.

Short liquidations trigger Bitcoin rebounds

Bitcoin often produces sharp rebounds even during deep bearish phases. Initially, heavy short positioning builds across derivatives markets as traders expect further downside. At the same time, funding rates turn deeply negative, showing shorts paying longs to maintain positions.

As price stabilizes, even a modest uptick can trigger forced liquidations. Recently, roughly $736 million in short positions were wiped out as Bitcoin surged toward $70,000. This liquidation cascade forces traders to buy back BTC, accelerating the rebound.

Meanwhile, exchange inflows are slowing from earlier peaks, easing sell pressure and suggesting fewer traders are willing to offload coins at current prices.

As a result, recent rallies appear driven more by short squeezes and whale accumulation than by genuine trend reversals within the broader bearish cycle.

Final Summary

Bitcoin [BTC] stabilization near $70,000 reflects seller exhaustion and supply absorption, yet weak Bull Score readings show the broader market still lacks conviction for a sustained uptrend.
Bitcoin rebounds currently rely on short liquidations and localized accumulation, suggesting tactical rallies within a fragile market structure rather than a confirmed bullish cycle.

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Muriuki Lazaro

Muriuki Lazaro is a on-chain data analyst with a B.Sc. in Data Science. Muriuki specializes in dissecting complex on-chain data into clear and accurate insights for readers in the crypto ecosystem, with a particular focus on Bitcoin. More Articles