Bitcoin Climbs by 6% to $71k as Selloffs Ease
Bitcoin (BTC) climbed by 6.14% over 24 hours to $71,133.51 on Wednesday, outperforming a 5.01% rise in the total crypto market cap, primarily driven by a technical breakout amid broad market momentum.
BTC broke above its recent swing-high resistance at around $71,140, a move validated by a high 24-hour volume of $56.58 billion. Bitcoin’s price is rallying despite institutional caution, creating a curious divergence in the market.
Bitcoin is experiencing a technical breakout fueled by derivatives, but faces headwinds from institutional exchange-traded fund (ETF) outflows, all while general market sentiment remains surprisingly fearful.
However, the rally coincided with a 5.01% surge in total market cap, indicating a broad-based move, though no specific macro catalyst was evident in the data.
The breakout suggests renewed buying interest and a potential continuation of the trend, but it’s extended with RSI14 at 73.33, signalling overbought conditions that could precede consolidation.
Perpetuals open interest rose 2.79% to $414.59 billion, and the average funding rate turned positive at 0.0042676%, indicating healthy leverage demand for longs.
Concurrently, Bitcoin’s dominance increased, signalling capital may be rotating from altcoins back into BTC amid a falling Altcoin Season Index.
While not the primary driver, these flows provided tailwinds for the move, reflecting trader conviction and a slight defensive tilt in the market, crypto analysts said.
The combination of a technical breakout and supportive market-wide flows points to continued strength, though overbought readings warrant caution for a near-term pause.
U.S. spot Bitcoin ETF assets under management (AUM) have declined to $93.23 billion, down from $110.92 billion a month ago, according to CoinMarketCap data. This represents an outflow of approximately $4.3 billion over 30 days, despite the price rising recently.
This is a bearish counterpoint to the price action, suggesting institutional investors or large holders are using the rally to exit positions and realise profits. It creates a divergence, with retail and derivatives traders buying while a key institutional channel shows distribution. Ethereum Stages Rebound, Gains 6% in 24 Hours
