Bitcoin Breaks $71K, Analysts Including Tardigrade Verify Composite Signals

Bitcoin (BTC) is currently trading around $71.21K, up 3.54% over the past 24 hours. Following last week’s accelerated inflows into BTC ETFs, the market is now experiencing multiple technical signals appearing simultaneously. The oversold condition on the weekly RSI, the shift in ETF capital flows, and overlapping liquidity concentration zones are attracting traders’ attention.

Industry analysts evaluate the market from three perspectives: long-term chart patterns, liquidity maps, and ETF trends. It is rare for these signals to appear together, and opinions among traders are divided on the outlook.

Weekly RSI reaches oversold, Tardigrade highlights a key moment

Noted trader Tardigrade identified two conditions near important lows on the weekly chart. His analysis suggests that the price has been pushed down to the lower boundary of the upward channel, while the weekly RSI has re-entered the oversold zone (below 30).

On the chart, attention is drawn to the green upward trend framework. Recent price movements are near the so-called “channel bottom.” The RSI panel also shows behavior consistent with past cycles, declining into the oversold band.

Tardigrade’s analysis indicates that in past cases, when these two signals coincided, Bitcoin recovered to new highs. However, this pattern does not guarantee the same outcome now, and traders continue to monitor subsequent movements cautiously.

After three weeks of capital outflows, ETF inflows turn positive

Active traders who share trading strategies note that Bitcoin remains within a compressed range after testing long-term support. There is a growing consensus that the market is structured around clear liquidity concentration points.

Looking at the BTC/USDT chart, a bearish bias scenario is considered. The fair value gap at $66,360 and the order block zone around $66,800 are especially watched, depicted as gray bands stacked above the current price on the chart.

A key level is the reversal line of the candlestick. Surpassing the high of $67,078 could signal a breakout from the compression zone, with the next target around $68,150. The current oscillation below the gray resistance area presents two options: a move upward toward liquidity or rejection and decline.

The shift in ETF capital flows also marks an important market turning point. After three consecutive weeks of net outflows (-6.35K, -5.30K, -4.58K), the latest week saw a net inflow of +11.8K. This indicates a renewed acceleration of capital inflows, suggesting institutional interest is returning.

Liquidity battles concentrate around $67,000–$68,000

Data from the on-chain analysis platform Coinglass reveals a critical level near $67,482. A rapid rise to this level could trigger the forced liquidation of approximately $20.5 million worth of BTC short positions.

The liquidation heatmap shows bright bands at the top, indicating heavy liquidity accumulation. Bright areas on these maps are closely linked to leveraged positions. When prices push into these zones, forced liquidations tend to cascade, accelerating price movements. Traders are closely watching the narrow liquidation bands within this range.

Notably, the $67,000–$68,000 zone appears across multiple traders’ analysis tools simultaneously. This convergence significantly increases the importance of this level. However, since liquidity magnets attract in both directions, a reversal cannot be ruled out if prices reach this level.

From Coinglass’s ETF net flow chart, it’s clear that ETF inflows shifted distinctly after the last week of February. The three-week outflow phase was followed by a positive turn, reflecting a recovery in market sentiment and renewed institutional demand.

Currently, Bitcoin is at a crossroads where technical signals, liquidity hotspots, and institutional capital trends intersect. Trading around the $71K level carries both upside and downside risks in the short term. The combination of the oversold weekly RSI and ETF inflow reversal suggests a cautious approach is warranted.