Bitcoin holds $67K support as data exposes price to sentiment divergence

Bitcoin (BTC) continues to show strong support at $67,000, even as a growing split between BTC's price stability and bearish sentiment among investors leaves the cryptocurrency in a state of equilibrium.

BTC’s resilience in avoiding dips below $60,000 has been driven by strong institutional investor demand and long-term buying, despite volatility stemming from the US-Israel-Iran war.

Wintermure flags a shift in BTC positioning

Market maker Wintermute noted that Bitcoin’s price and sentiment were diverging. The Fear and Greed Index sat at 11 on Tuesday, staying in “extreme fear” for over a month.

The sentiment index has remained in this range for the longest period in its history.

However, BTC has absorbed a $403 million liquidation event, persistent negative on-chain demand, and repeated war headline shocks without losing its yearly lows set at $60,000 on Feb. 6.

Wintermute explained that the institutional demand played a central role in March. Spot Bitcoin exchange-traded funds (ETFs) absorbed around 50,000 BTC, while corporate buying added 44,000 BTC.

Morgan Stanley also received approval for a spot ETF from the New York Stock Exchange (NYSE), expanding access to 16,000 advisors. The total net inflows reached $1.32 billion, ending a four-month streak of net outflows.

The demand from accumulator addresses supported this trend. CryptoQuant data indicates that demand from long-term wallets rose to 289,971 BTC on April 7, up from 158,336 BTC over the previous two weeks, i.e., an increase of 83%.

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Demand from accumulator addresses. Source: CryptoQuant

Crypto researcher Rei noted that this divergence points to steady absorption, with the 30-day average trend acting as a key confirmation signal. Rei said,

“If that happens alongside price establishing acceptance at higher levels, the signal becomes significantly more convincing.”

BTC ETF flows slowed down as leveraged trading rises

Wintermute also noted that despite surging institutional demand in March, ETF flow data shifted toward the end of the month. ETF activity flipped to $414 million in outflows in the final week, while over-the-counter (OTC) positioning moved to neutral and early selling from buying.

Meanwhile, crypto analyst Maartunn pointed out that BTC’s surge to $70,000 on Monday was a leverage-driven pump. 75% of such rallies have retraced completely in 2026, with the recent rally taking shape from $67,000.

BTC price and open-interest change. Source: Maartunn

A daily candle close above $67,000 on Tuesday will be a positive development and will continue to signal a rising uptrend on the short-term chart.

On the daily chart, BTC has closed below $67,000 on 26% of total trading days (16 out of 61) since Feb. 5, when it first fell below that level since October 2024.