The leverage ratio reached a low weekly average that aligned with ongoing deleveraging.
Bitcoin traded near $70,000 on Monday as war fears grew across the Middle East, and the market held steady and pushed higher. Traders watched exchange activity closely because short-term flows shifted again. The latest chain data showed cooling loss-driven selling, and futures activity kept falling as open interest reset lower during the session.
Short-term holder loss transfers dropped to a two-week low, and this shift aligned with slowing exchange flows across major venues. Realized losses fell to 3,700 BTC on March 1 as tensions rose, and traders kept BTC above $63,000 as inflows stayed muted.
The reduction contrasted with early February, and that period saw 89,000 BTC sent at a loss within one day. Analysts said the current environment showed reduced stress and “zero panic,” and loss-driven inflows kept compressing into March.
This decline showed less pressure from recent buyers, and the market tracked whether losses would surge again. The steadier flows set a calmer tone, and traders watched if the pattern would hold under geopolitical pressure.
BTC moved through $70,000 on the four-hour chart, and the price approached liquidity between $70,000 and $71,500. Traders said this area could turn into support, and they pointed to past supply reactions near $80,000.
Analysts highlighted growing clusters near the range highs, and these pockets sat between $70,000 and $73,000. They said these areas often pull price when they grow, and the market kept scanning for reactions.
Spot flows supported the move, and Binance recorded $7.79 million in positive delta during the breakout. Coinbase added $1.16 million, and OKX logged $3.7 million, and this pattern pointed to steady spot demand.
The activity showed stronger bidding across venues, and the move came while leverage decreased again. Traders then turned to the $71,500 band, and they watched for a reaction if buyers held the zone.
Futures data showed a clear reduction in risk, and analysts tracked a 25% contraction in Binance open interest since the year began. The metric fell from 130,800 BTC to 97,680 BTC, and the reset aligned with calmer positioning.
The estimated leverage ratio slipped to a 0.146 weekly average, and past cycles tied low readings with heavy deleveraging. This trend revealed a lighter market structure, and traders monitored the shift as BTC tested key monthly metrics.
BTC attempted to reclaim its Monthly RVWAP in the high-$68,000 zone, and trading above it placed the month’s average buyer in profit. Analysts said this move often changes positioning, and they watched to see if BTC could stabilize above the level.
The session ended with BTC near the $71,500 liquidity band, and the market focused on spot flows as the price tested the region.
