Bitcoin (BTC) surged 8% on Wednesday, trading above $73,000, a level that has halted every recovery attempt over the past three weeks. Analysts Reveal Why Bitcoin Needs to Hold $70,000 to Secure a Rebound.

Key takeaways:

• Profit taking during the rally to $70,000 needs to nippy down for the BTC price to sustain.

• To confirm recovery, Bitcoin needs to maintain support at $68,000-$70,000.

Profit taking must be absorbed with sturdy purchases

After closing in the red for the sixth consecutive week, Bitcoin has finally broken through the $64,000-$70,000 range that has defined its price action over the past three weeks.

Glass knot overview of the most significant events that Bitcoin’s struggle to break above $70,000 was due to repeated spikes in realized profit near that level, signaling hefty profit taking.

Related: Bitcoin still has a “next dip” as BTC price at 73k. dollars precedes the death cross

The chart below shows that every time the 12-hour SMA of the Net Profit and Loss Ratio rose above $5 million per hour, the price stopped and reversed at the high of $69,400.

Any data recovery attempt continues to be restricted in this region, which occurred on February 19, 25 and Tuesday.

This absorbs growth momentum in a tight liquidity environment, “reflecting the fragility of the current demand structure,” the onchain data analytics firm said.

For BTC to stay above $70,000, “the level of profit taking must be absorbed without causing rejection,” Glassnode added.

Meanwhile, private wealth manager Swissblock he said that after almost 30 days of “extreme risk” at 100, Bitcoin’s risk index is degenerating.

This shift towards low risk could trigger a bullish rally, allowing Bitcoin to sustain above $70,000.

“While it remains elevated for now, a return to a low-risk environment could catalyze another rally, with initial targets of $83,000 and a potential increase to $110,000.”

As Cointelegraph reports, compressed volatility, rising ETF flows and reduced discounts on Coinbase suggest that Bitcoin’s downtrend is slowing, increasing the chances of a near-term rebound.

Bitcoin price must have a support of $70,000

Bitcoin’s 21% rebound from multi-year lows below $60,000 has seen its price regain key support levels, including the 200-day exponential moving average (SMA) at $68,000 and the psychological level of $70,000.

“For any sustained rally from here, Bitcoin would need to reclaim the EMA as support” on the weekly time frame, Rekt Capital analyst he said in X’s last post, adding:

“Until proven otherwise, EMA acts as the resistance.”

A daily candlestick closing above $70,000 “would be good for markets,” fellow analyst Ted Pillows said in a Wednesday post on X, adding:

“If Bitcoin fails to hold above the $70,000 support zone, expect a retest of the $65,000-66,000 support zone.”

Glassnode’s short-term holder (STH) cost-based distribution heatmap reveals the largest cluster under $70,000, with investors purchasing approximately 230,000 BTC over the past month.

Staying above the CPK supply clusters is a key condition for regaining dynamics and making a significant recovery.

As Cointelegraph reports, a break of the symmetrical triangle resistance line at $70,000 would strengthen the case for a sustained rally towards $75,000 before the end of the month.