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Bitcoin retained the $65,000 support and climbed to a local high of $70,578 before easing slightly. At the time of writing, BTC was trading around $69,951, up 4.31% in the last 24 hours.
This rebound also pushed Bitcoin near the Exponential Moving Average (EMA9) at $68,428, signaling short-term bullish momentum.
Despite this, analysts pointed to a deeper structural shift in derivatives positioning. CryptoQuant analyst Darkfost noted that leverage in Bitcoin markets has fallen sharply, indicating a broader market reset.
Bitcoin faces leverage reset amid prolonged weakness
Global macro uncertainty and recent volatility have forced traders to reduce leverage. This change was clearly evident Bitcoin (BTC) Estimated Leverage Ratio (ELR) on Binance.
Accordingly dark forestELR has dropped from 0.198 to 0.152 since February. Such sharp declines often occur after phases of strong volatility.
Source: CryptoQuant
Historically falling leverage ratios reflect investor closings of positions or forced liquidations. This process reduces speculative risks and eliminates excess leverage in the system.
This move was in line with broader derivatives activities.
Data from Checkonchain showed that the Bitcoin Futures Open Interest 7-Day Change turned negative, dropping from roughly 4.2 to around -0.6.
Source: Checkonchain
Decrease in Open Positions usually indicates that investors are closing positions instead of opening new positions. In many cycles, such deleveraging phases stabilize markets before larger directional moves.
Can short-range acceleration be sustained?
However, the recent upward momentum appeared to be closely linked to short-term liquidations rather than fresh capital inflows.
More than $115 million in short positions were liquidated between March 9 and 10 as BTC rebounded from the $65,000 decline.
Source: CryptoQuant
This shift triggered forced buying as traders closed bearish positions.
On top of that, the Taker Call/Ask Ratio rose above 1 for two days in a row, signaling stronger aggressive buying in the derivatives markets.
A ratio above one generally reflects dominant buy-side pressure from market buyers.
This demand coincided with improving momentum indicators.
Bitcoin’s Relative Strength Index (RSI) has increased from 42 to roughly 51, indicating that short-term momentum is strengthening.
Source: TradingView
This move also pushed BTC above the EMA9 support level, strengthening the short-term uptrend.
Despite this, the durability of the rally remained uncertain.
If BTC maintains momentum above EMA9 near $68,400, the next resistance could appear near $74,050.
Failure to maintain this level could expose Bitcoin to another pullback towards the $65,000 support zone.
Final Summary
- Bitcoin (BTC) recovered from the $65,000 support, briefly reaching $70,578 and then stabilizing near $69,951.
- But the rally appears to be driven in part by a short-term stop rather than new bullish positioning, increasing the risk of another pullback.
