Bitcoin just made an emotional "u-turn" in the past 48 hours, officially sweeping away the darkness of the deep correction at the end of February. From the "panic" zone of 64,000 USD, BTC has surged strongly, establishing a short-term peak at 74,000 USD this morning (05/03).
Below are 3 important "links" that created this surge:
1. The "Short Squeeze" effect: When the Bears are trapped
The breakthrough through the psychological resistance level of 70,000 USD has triggered a series of mass liquidations. According to data from Coinglass, over 300 million USD in Short positions have been "wiped out" in 24 hours.
Expert opinion: This is forced buying. When the short side is forced to close positions to cut losses, they inadvertently become the demand force pushing Bitcoin's price higher, creating a decisive "green column" on the chart.
2. Institutional money flow: "Sharks" are not afraid
Contrary to the panic of retail investors when the price reached 64,000 USD, Bitcoin ETFs in the US still recorded extremely stable inflows.
• Strategy: Financial institutions are taking advantage of dips to accumulate stocks at discount levels.
• Expectation: The presence of smart money is the most solid "foundation" for BTC to aim for the ambitious target of 80,000 USD this second quarter.
3. "Digital Asset Clarity Act": A boost from the legal corridor
The market is reacting extremely sensitively to speculations about the Digital Asset Transparency Act in the US.
• Influence: If approved, this will be the "official pass" for large pension funds and financial institutions to enter Crypto.
• Sentiment: "Buy the rumor, sell the news" — this expectation is keeping the Fear & Greed index at a high level of excitement.
📉 STRATEGY FOR MARCH 2026:
• Resistance Zone: 75,200 USD – 78,700 USD (Old peak).
• Support Zone: 68,500 USD (Must hold to confirm a sustainable uptrend).
Conclusion: Bitcoin is sending a strong message: The growth cycle has not ended yet. However, investors need to be cautious before retesting support levels before deciding to increase their positions.
According to you, will BTC break the 80,000 USD peak this March or will it need another accumulation phase at the 70k range? Leave your opinions below! 👇