「Buying the Dip」 of 400,000 BTC: Is $74,000 a Rebound or a Reversal?

Original Title: "After 'Buying the Dip' of 400,000 BTC: Is $74,000 a Rebound or Reversal?"

Original Author: Mach, Foresight News

The cryptocurrency market recently saw a long-awaited strong rebound. On March 5, the price of Bitcoin once exceeded the $74,000 mark, with a nearly 8% increase within 24 hours, setting a new high for almost a month. Currently, the BTC price is fluctuating in the $72,000-$73,000 range, with the overall crypto market sentiment improving. ETH has risen to around $2,100, up over 7%, and some altcoin markets have experienced a slight rebound.

Regarding liquidation data, according to coinglass, the total value of liquidated positions in the past 24 hours was $595 million, with $482 million from short liquidations. The market's fear index has finally moved out of the extreme fear zone, rising to 29.

Recently, the White House officially submitted Kevin Wash's nomination as Federal Reserve Chair to the Senate, and the U.S. Senate rejected a war powers resolution limiting Trump's military actions against Iran. These two major political events quickly boosted global risk sentiment. The market generally believes that Wash, as a renowned economist, significantly enhances the Fed's policy continuity and market-friendly expectations with his nomination, while the Senate vote effectively eases concerns about escalated Middle East geopolitical tensions, avoiding the worst-case scenario.

Gold, as a safe-haven asset, has performed well, currently hovering around $5,150-$5,300 per ounce. U.S. crypto-related stocks surged, with MSTR closing up 10.37%, COIN up 14.57%, and CRCL up 5.63%.

In addition, according to Bitget market data, the daily Korean and Japanese stock indices opened higher, with the Korean KOSPI index rising by 565.69 points to 5,654.72 points, an 11.02% increase, and the Nikkei 225 index rising by 2,319 points to 56,564.54 points, a 4.28% increase.

BTC Spot ETF Sees Continuous Large Net Inflows Since Late February

Data shows that between the end of 2025 and early February 2026, Bitcoin spot ETF data occasionally showed large net inflows, but mostly large net outflows.

Since Bitcoin hit an all-time high in early October last year, as of February 20, 2026, the holdings of U.S. Bitcoin spot ETFs have experienced the largest reduction in this cycle, with a total decrease of approximately 100,300 BTC.

However, this trend began to change on February 20, showing multiple significant net inflows.

As of March 5, there were only 2 instances of net outflows, both not significant in value. Meanwhile, during this period, there were large net inflows of $4.58 billion and $5.06 billion in a single day.

Inflowing funds are starting to recover, so it's no surprise to see an increase in BTC price.

400,000 BTC Acquired in the $60K-$70K Range, Selling Pressure Easing

During the Bitcoin pullback in February, according to Glassnode data, a significant amount of on-chain accumulation occurred in the $60,000 to $70,000 range, with over 400,000 BTC acquired by investors, indicating strong "buy the dip" behavior.

The BTC supply in this price range has increased from around 997,000 BTC on January 1 to approximately 1.43 million BTC currently, representing an addition of about 429,000 BTC, a 43% increase. Over 8% of the circulating supply off exchanges is held in this range, forming a concentrated holding band.

Furthermore, data from March 3 shows that after months of continuous net selling, Long-Term Holders' (LTH) net positions are now showing signs of stabilization.

This indicates that as the Bitcoin price stabilizes, the selling pressure from experienced holders is easing. Resistance in BTC supply remains, but the intensity of selling is diminishing.

Stablecoin Market Cap Remains High, Up $1.737 Billion in the Past 7 Days

Stablecoin data continues to be one of the indicators to watch for market funds.

According to DeFiLlama data, the total market cap still stands at a high of $3,108.48 billion. In the past 7 days, USDT's total market cap increased by 0.03%, while USDC saw a 1.84% increase.

It is worth mentioning that in the past 1 month, USDC market capitalization has increased by 8.6%, PYUSD by 16.7%, U by 29.04%, and USDG by 12.87%.

The high-level operation of stablecoins not only provides ample market liquidity but also reflects a signal of ongoing capital inflow into the crypto ecosystem—trading volume remains at the trillion-dollar level, serving as a bridge, accumulating potential energy for the next phase of growth for assets like Bitcoin. Despite the lack of explosive growth, the stablecoin supply itself is an indication of market maturity and confidence restoration.

Michael Saylor continues to increase his Bitcoin holdings through the company's unlimited purchase strategy, with a current holding of over 720,000 BTC at an average cost of about $76,000. He has publicly stated multiple times: "We are in a phase similar to Apple's early 'desperate valley,' where Bitcoin, as digital property and digital credit, will outperform traditional assets."

ARK Invest founder Cathie Wood stated in an outlook report in early February 2026 that the Bitcoin downward cycle may be nearing its end. "The key to achieving asset allocation diversification is to introduce new assets with low correlation to existing assets, and Bitcoin fits the bill. The addition of low-correlation assets can, in the long run, enhance risk-adjusted returns. Therefore, Wood believes that institutions are indeed taking cryptocurrencies seriously. Previously, they may have hesitated due to the 'four-year cycle' narrative. Regardless of whether the four-year cycle exists, the market has indeed gone through a significant decline and is currently approaching what many technical analysts consider a potential low zone. Near the bottom, the market tends to experience sharp fluctuations. Afterwards, people often say: 'If only I had bought at that low point. The V-shaped rebound is quite significant.' Of course, this is not a commitment in any form, but it seems that multiple factors are gradually aligning."

Tom Lee, Chairman of Ethereum Treasury company BitMine, said in an interview with CNBC, "No one wants to see the U.S. involved in a conflict. But it must be pointed out that the market is much more resilient than expected. I don't think anyone can assert that we have hit bottom now, but it looks like we are building a bottom—bad news keeps coming out, yet the market can absorb it and remain stable. More importantly, I believe positions have been significantly reset. Looking back to last April, a simple signal was the VIX rising above 40. It went up to 80 last year, but this time it may not go that high. Another signal is: if there is another panic-inducing news, gold continues to fall, and the stock market turns higher on the same day, that means the market has cleared out. I think we are approaching that stage."

Tom Lee believes March is a period of bottom formation. Software, Mag 7, and crypto assets have already completed about 90% of their decline. They are outperforming the market, which shows leadership. Even in the event of global trade disruptions, you still need AI, and you still need Mag 7. The fundamentals of these companies remain strong. Investors need to remain patient and cautious, holding onto some cash. But I believe opportunities are emerging.

Original Article Link