Bitcoin eyes $71K relief rally as rare buy signal flashes

• Significant bid-side imbalance observed near $65,000, reaching the 99th percentile across multiple depth levels.
• Potential for a relief rally toward $71,000, where over $1.6 billion in short leveraged positions are at risk of liquidation.
• Historical data suggests April 1 often serves as a local price bottom, occurring in 67% of cases over the last nine months.

Order Book Imbalance Signals Local Bottom

Recent market data indicates a rare trading setup for Bitcoin (BTC) after it dipped below the $65,000 mark on Sunday. A sharp skew in the bid-ask ratio suggests that buying pressure has intensified significantly. Data provided by Hyblock shows that the bid-side imbalance hit the 99th percentile across the 1%, 2%, 5%, and 10% order book depths.

This level of demand absorption typically signals that selling momentum is exhausted. Following this spike in buying interest, the price of Bitcoin quickly rebounded toward the $67,000 to $68,000 range, suggesting that buyers are actively defending clustered liquidity zones.

Technical Targets and Liquidation Risks

For the current relief rally to maintain its momentum, analysts suggest that Bitcoin must secure a daily close above $66,700. From a technical perspective, a four-hour bullish break of structure has already provided an initial signal of a trend shift.

If the upward movement continues, the primary target is $71,000. This price level is particularly significant because it hosts a massive cluster of cumulative short liquidation leverage. It is estimated that more than $1.6 billion in short positions could be forced to close if Bitcoin reaches this threshold, potentially accelerating the price surge.

Conflicting Historical Patterns

The outlook for early April is influenced by two competing historical trends. On one hand, the April 1 pivot has historically been favorable for the market; data from trader LP indicates that the first day of the month has marked a local low in 67% of instances over the past nine months.

On the other hand, Mondays have traditionally shown a pattern of weakness. Analyst KillaXBT noted that approximately 90% of Mondays over the last six months have seen early highs followed by a sell-off. Specifically, 20 out of the last 24 Mondays resulted in at least a 3% price drop. Bitcoin is currently navigating between these two signals as it eyes the major liquidity target at $71,000.