Bitcoin’s struggle to hold above $70,000 is revealing a clash between profit-taking and renewed FOMO. On-chain data shows investors are selling into rallies, with realized profit recently surpassing $20 million per hour. However, sentiment indicators and significant capital inflows from entities like Metaplanet and U.S. ETFs suggest underlying bullish demand remains strong.
Bitcoin faces strong resistance as it approaches the $70,000 mark, with traders quickly taking profits on rallies. This pattern of distribution into strength has been consistent since February 2025, according to Glassnode data.
The asset has attempted to reclaim the $75,000 level roughly seven times since a sharp decline in January, failing to hold each time. Technically, this reinforces the idea of strong overhead resistance and thin liquidity in that price range.
Macro risks are contributing to cautious positioning, with reports of potential U.S. military actions adding volatility. In this environment, trading data shows Bitcoin’s Long/Short Ratio has flipped negative as bears position for possible downside.
Despite this, market sentiment tells a different story, reaching its third-highest greed reading in three months. Put simply, following BTC’s latest surge, retail investors quickly flipped back into FOMO mode, a Santiment report stated.
Substantial capital is continuing to flow into the asset. CryptoQuant reported that Metaplanet has accumulated 5,075 BTC as part of a broader acquisition plan. Meanwhile, U.S. Bitcoin ETFs recorded $471 million in inflows on April 6, the largest single-day inflow in nearly three months.
The market now sits at a clear psychological crossroads between macro-driven caution and underlying demand. This dynamic makes Bitcoin’s current choppy price action appear less like weakness and more like a potential bear trap forming.
