BTC maintains $67K floor while market data reveals disconnect between price action and investor mood
While Bitcoin sustains support at the $67,000 level suggesting accumulation activity, its inability to break through $70,000 continues to raise questions.
Bitcoin (BTC) remains firmly supported at the $67,000 level, while an increasing disconnect emerges between the cryptocurrency's price stability and the pessimistic outlook held by market participants, keeping BTC locked in a balanced state.
The ability of BTC to stay above $60,000 has been fueled by robust demand from institutional players and sustained long-term accumulation, notwithstanding market turbulence related to the US-Israel-Iran conflict.
Wintermute identifies change in BTC market positioning
Market making firm Wintermute observed a divergence between Bitcoin's price action and prevailing market sentiment. The Fear and Greed Index registered a reading of 11 on Tuesday, maintaining its position in "extreme fear" territory for more than 30 days.
This sentiment indicator has stayed within this zone for the longest duration ever recorded in its operational history.
Despite this, BTC has successfully weathered a liquidation event totaling $403 million, continued negative demand signals from on-chain metrics, and multiple geopolitical shock waves from war-related news without breaking below its yearly low of $60,000 established on Feb. 6.
Wintermute highlighted that institutional participation was a crucial factor during March. Exchange-traded funds (ETFs) for spot Bitcoin accumulated approximately 50,000 BTC, while purchases by corporations contributed an additional 44,000 BTC.
Morgan Stanley additionally secured approval from the New York Stock Exchange (NYSE) for a spot ETF, broadening access to 16,000 financial advisors. Net inflows totaled $1.32 billion, bringing an end to a four-month period of net capital outflows.
This pattern received support from demand originating from accumulator addresses. According to CryptoQuant data, demand from long-term holding wallets climbed to 289,971 BTC on April 7, compared to 158,336 BTC during the preceding two-week period, representing an 83% surge.
Cryptocurrency researcher Rei observed that this divergence indicates continuous absorption, with the 30-day moving average trend serving as an important confirmation indicator. Rei said,
"If that happens alongside price establishing acceptance at higher levels, the signal becomes significantly more convincing."
BTC ETF flows experienced slowdown as leveraged trading activity increases
Wintermute further observed that notwithstanding the spike in institutional demand throughout March, ETF flow patterns changed direction as the month concluded. ETF activity reversed to register $414 million in outflows during the final week, while over-the-counter (OTC) positioning transitioned to neutral and early selling from previously dominant buying behavior.
In the meantime, cryptocurrency analyst Maartunn highlighted that BTC's climb to $70,000 on Monday represented a leverage-fueled rally. Approximately 75% of comparable rallies have fully retraced during 2026, with this latest surge developing from the $67,000 level.
A daily candlestick close above $67,000 on Tuesday would represent a constructive development and would maintain the signal of an advancing uptrend on the near-term price chart.
Examining the daily chart, BTC has registered closes beneath $67,000 on 26% of all trading days (16 out of 61) starting from Feb. 5, when it initially dropped below that threshold for the first time since October 2024.
