Bitcoin has once again failed the $ 70,000 level

Bitcoin BTC $69,325.17 Mezo Wrapped BTC -2.48% Market capitalization $40.88 million VOL. 24 hours $1.27 billion today, March 26, fell back below the key $ 70,000 mark, hitting a daily low of $ 69,914 after a brief rise above $ 71,000 earlier in the week. Analysts say the drop reflects not only a reaction to political news but also the weakness of the network itself.

According to blockchain analytics, the Bitcoin network activity index continues to decline. Fewer active addresses and fewer transactions indicate a decline in user interest and weaker demand for block space. The dynamics of UTXO, an indicator of coin movement, has also slowed down, and blocks contain less data than during periods of high activity.

Analysts emphasize that the lack of strong demand explains the difficulty of the price to stay above $ 70,000. Despite the recent growth, it was not backed by an increase in network activity, which often leads to corrections. Short-term data shows small losses, and the market is gradually shifting to a more cautious mode.

The key support level is now $ 69,423. If it holds, Bitcoin may regain ground and try to break through to the first significant resistance at $ 71,645, and then to $ 73,687 and $ 75,930. If it falls below $ 69,423, the next support will be $ 67,167.

From a macroeconomic perspective, traders are focused on the upcoming US inflation data. If the PCE figure comes in below 2.8%, it could support risky assets and give Bitcoin a chance to recover. A higher result of more than 3%, on the other hand, will increase pressure and could trigger a new wave of decline.