Research and brokerage firm K33 said bitcoin has become deeply oversold after six consecutive weekly declines and five straight down months, with its weekly relative strength index dropping to one of the lowest readings on record. Head of Research Vetle Lunde argued that extreme bearish positioning in derivatives and heavy de-risking by long-term and institutional holders have created a risk-reward profile that favors accumulation, adding the firm sees no compelling reason to sell BTC at current prices.

Indiana Governor Mike Braun signed House Bill 1042, titled Regulation and Investment of Cryptocurrency, authorizing certain state-run retirement plans to add a brokerage window with at least one cryptocurrency investment option. The law defines digital assets as cryptographically secured currencies outside central control, introduces tax protections for legitimate crypto use, and coincides with Bitcoin trading around $71,522 after rising nearly 8% in the past 24 hours. The state legislature also advanced House Bill 1116 to prohibit crypto ATMs, which awaits the governor's signature.

In the first days of March 2026, US spot Bitcoin ETFs and MicroStrategy together absorbed more than $1.7 billion worth of BTC, with ETFs alone seeing $1.1 billion in net inflows over three trading sessions and MicroStrategy adding 3,015 BTC for about $155 million. Bitcoin has climbed roughly 8.5% to around $71,000, while traders now focus on the key $64,000 resistance and a critical support zone between $50,000 and $55,000 as institutional demand outpaces new supply.

According to on-chain data, long-term Bitcoin holders holding coins for at least 150 days accumulated 212,000 BTC over the past 30 days, valued at more than $14 billion at current prices. During the same period, seventeen of the 25 largest Bitcoin ETF holders increased their positions, while retail traders were selling as Bitcoin traded around the mid-$60,000 range after an earlier peak of $126,200. Bitcoin ETFs also recorded $1.5 billion in inflows across five trading sessions, ending with a single-day intake of $458 million.

Bitcoin briefly dropped to $63,000 during a weekend escalation involving Israel, the U.S., and Iran, before rebounding to reclaim the $71,000 level. On-chain data points to seller exhaustion around $63,000 and negative exchange flows as coins moved off exchanges, while analysts highlight growing market resilience versus traditional assets. Key technical levels now focus on support near $65,700 and potential upside targets toward $74,000–$75,000 if Bitcoin holds above $70,500.

Bitcoin has stayed under $70,000 during its current downturn, sparking debate over where the next major price bottom will form. Crypto analyst Crypto Patel uses past market cycles to argue that BTC could still decline toward $50,000, or even below $40,000 if historical patterns repeat. After such a drawdown, he forecasts a possible multi-hundred-percent advance that could eventually drive the Bitcoin price to around $220,000.

On Tuesday, US spot Bitcoin ETFs recorded $225.2 million in net inflows as BlackRock’s iShares Bitcoin Trust (IBIT) attracted $322.4 million, offsetting sizable redemptions from rival products. Fidelity’s FBTC and Grayscale’s GBTC saw outflows of $89.3 million and $28.2 million, while weekly inflows for US spot Bitcoin ETFs reached $683.3 million amid ongoing market fear and geopolitical uncertainty.

On-chain data indicates that Bitcoin long-term holders have recently seen their net position change turn less negative, suggesting that months of distribution from this cohort may be slowing. These investors, who acquired their coins more than 155 days ago, began net selling when BTC weakened in the last quarter of 2025 and intensified as the price fell toward $60,000. Selling pressure is still present but has diminished as Bitcoin trades near $68,500 after a failed push toward $70,000 that triggered significant profit-taking.