Bitcoin trades sideways in the $71,000 range…bullish trend intact despite a pullback

Bitcoin (BTC) has continued to fluctuate around the $71,000 level, and analysts say the market’s uptrend remains intact despite the short-term pullback.

According to Cointelegraph on the 18th (local time), after recently climbing to around $76,000, Bitcoin fell about 7% and has since been moving sideways in the $71,000 range. The correction is attributed to risk-off sentiment in equities driven by macro factors such as a sharp rise in global oil prices and an uptick in the U.S. Producer Price Index (PPI).

Even so, the market structure is still viewed as bullish. That is because inflows via spot ETFs and MicroStrategy’s (Strategy) ongoing Bitcoin purchases continue to support upward momentum.

Cointelegraph said, “Demand centered on the spot market is underpinning Bitcoin’s uptrend.”

In derivatives markets, the risk from excessive leverage also appears limited. According to CoinGlass, an on-chain and derivatives data analytics platform, even if Bitcoin were to drop to $68,000, the amount of long positions that would be liquidated would be about $450 million—roughly 1% of total open interest.

Funding rates are also staying in negative territory, indicating an increase in short positions. This structure could instead translate into upward pressure if prices do not fall further.

The macro backdrop is also a variable. As inflationary pressure persists, the appeal of bond yields is diminishing, raising the possibility that capital could shift to gold or Bitcoin.

Cointelegraph noted that “gold prices have recently shown signs of losing momentum,” adding that “if funds rotate into Bitcoin, it could become a catalyst for further gains.”

Overall, Bitcoin is maintaining a structurally bullish trend despite the short-term correction, and spot demand and shifts in the macro environment are expected to be key variables that determine price direction going forward.