The $73,000 Test: Crowded Shorts And Negative Funding Fueled Bitcoin’s 15% Recovery

Bitcoin recovered 15% to push above $70,000 toward $73,000 after a sharp selloff triggered by Middle East geopolitical tensions in late February. The rebound was fueled by renewed ETF inflows exceeding $200 million on March 4 and massive short covering as crowded bearish positions unwound.

• →Bitcoin fell to $63,000 on February 29 following reports of US-Israel military strikes on Iran but quickly recovered to $70,000+ by March 2.
• →US spot Bitcoin ETF inflows exceeded $200 million on March 4, driving institutional demand and supporting the price recovery.
• →Negative funding rates and crowded short positions led to forced liquidations that amplified upward momentum through short covering.
• →Bitcoin broke above key technical resistance at $70,000 and is now testing the 200-period moving average near $74,000.
• →The Coinbase Premium Index turned positive after extended negative readings, suggesting recovering US investor demand.