Bitcoin rebound ignites FOMO as traders turn bullish

Bitcoin's gains above $70,000 followed US spot exchange-traded funds swinging to net inflows and online chatter turning upbeat, with traders eyeing whether the price can reclaim $72,000.

Flows favored Bitcoin while funds linked to Ether, XRP, and Solana saw continued outflows, signaling a rotation back to the market leader.

ETF flows and price levels

On Monday, US spot Bitcoin ETFs attracted about $167 million in fresh inflows, ending a short two-day streak of outflows.

Bitcoin was trading around $70,230, up 0.4% on the day and maintaining a weekly gain as investors rotated away from riskier assets.

Institutional interest also remained visible.

Michael Saylor’s company bought another 17,994 BTC between March 2 and 8, spending roughly $1.28 billion during the dip.

Sentiment and geopolitics

Social media sentiment has shifted back toward optimism as Bitcoin recovered above $70,000, according to on-chain analytics firm Santiment.

Santiment said discussions across X, Reddit, Telegram, and other forums improved after US President Donald Trump suggested the conflict with Iran may be nearing an end, adding that falling oil prices also encouraged risk appetite.

Trump said, “I think the war is very complete, pretty much,” while later noting that if Iran slowed oil supply, the United States would increase military pressure.

Ryan McMillin, chief investment officer at Merkle Tree Capital, told Cointelegraph that Bitcoin’s resilience during geopolitical shocks and renewed institutional momentum could be lifting sentiment, alongside the asset holding above its February lows.

Despite the optimistic tone online, the Crypto Fear & Greed Index remained at 15, indicating “extreme fear,” and Google Trends interest for “Bitcoin” was around 71 as of Wednesday, down from a peak of 100 on March 5.

Rotation within digital assets

While Bitcoin consolidates, funds tied to Ether, XRP, and Solana continued to see outflows for a third straight day.

Etheruem ETFs $51.3 million outflow on Monday making it $225.1 million outflows in the previous 3 trading sessions.

XRP ETFs lost $13.29 million on Monday with total of $38.66 outflow in the 3 day period.

On Monday, Solana ETFs saw $30.65k withdrawal, making the total outflow in the 3 days to $193.63k.

Key levels and what to watch

Spot buyers are active near the $71,000 area, though derivatives positioning remains cautious, keeping momentum contained.

Analysts tracking technical gauges said the “Rainbow Chart” points to potential downward pressure into late March, with lower support bands possibly tested before the next leg higher.

Near term, reclaiming $72,000 and flipping it into support would improve the path higher, while a break of $65,000 could risk another swift flush before a more durable rally.

McMillin added that shorts are vulnerable and that liquidity on the short side could get squeezed toward $80,000 before a clearer decision point, noting that “bears ruled for months” and may now face an early test.