Bitcoin surged to a fresh monthly high near $74,000, triggering massive liquidations across the crypto market and leaving short sellers facing heavy losses. Market data shows that the latest rally wiped out hundreds of millions of dollars in bearish positions, shifting sentiment sharply in favor of bulls.

Despite the strong upward momentum, analysts suggest the market could still experience a pullback before the next major move. A possible support retest near the $65,000 range is now being discussed as traders assess liquidity levels and market positioning.

Short Sellers Face Heavy Liquidations

The latest Bitcoin rally forced a wave of liquidations across crypto exchanges. According to market data from CoinGlass, total liquidations across Bitcoin and other cryptocurrencies approached $600 million in a single day.

A large portion of these liquidations came from short sellers who were betting on falling prices. As Bitcoin climbed toward $74,000, these bearish positions were rapidly closed, amplifying the upward price movement.

CryptoReviewing, cofounder of trading community Wealth Capital, said the market dynamics have shifted significantly after the recent surge.

“Bears just got annihilated,” the analyst said while explaining that the recent price action dramatically changed the broader market structure.

Bulls Regain Control of Market Momentum

After several days of volatile price swings that wiped out both long and short positions, Bitcoin appears to have returned to bullish territory. According to CryptoReviewing, the rally has pushed the market into a critical liquidity zone between $73,000 and $75,000.

This area could act as a trigger point for further price expansion if buying pressure continues. When large liquidity zones are cleared, markets often move rapidly as stop orders and leveraged positions get activated.

For now, analysts believe the bulls have regained control after the recent breakout.

“Bulls just took back control,” CryptoReviewing noted, suggesting that the broader market outlook has improved following the move above key resistance levels.

Liquidity Data Points to Possible $65K–$71K Retest

While bullish momentum is building, liquidity analysis indicates that a deeper support zone still exists below the current price.

According to CryptoReviewing, the $65,000 to $71,000 range contains significantly more liquidity than the higher zone near $75,000. From a trading perspective, markets often move toward areas with greater liquidity as large orders get filled.

This makes a temporary pullback into that range a realistic scenario before Bitcoin attempts another upward move.

Keith Alan, cofounder of trading platform Material Indicators, also expects a consolidation phase to develop.

Alan believes a healthy trend reversal often includes a support test before a sustained rally begins. While he is not certain when such a move might happen, he suggested that a gradual climb could strengthen the long term trend.

“A support test sooner rather than later would be healthy,” Alan wrote in his latest market analysis.

Bearish Signals Still Linger

Even with the recent rally, some analysts remain cautious about the longer term outlook. Alan pointed out that several broader indicators still suggest the possibility of another downward move later in the cycle.

He warned that the current market structure could eventually lead to another correction if momentum slows.

According to Alan, the next significant drop could emerge from the current setup once the market completes its consolidation phase.

For traders, this means the present rally may not mark the final stage of Bitcoin’s upward cycle.

ETF Inflows Strengthen Institutional Interest

At the same time, institutional investment in Bitcoin continues to gain momentum. US spot Bitcoin exchange traded funds have recently recorded strong inflows, indicating renewed demand from large investors.

Data from UK based investment firm Farside Investors shows that Bitcoin ETFs recorded nearly $500 million in net inflows on Wednesday alone. Since Feb. 24, inflows have remained positive on nearly every trading day, with only one minor outflow of about $27.5 million.

In March so far, Bitcoin ETFs have attracted more than $1.1 billion in fresh capital.

Market analysts say this renewed institutional interest has supported Bitcoin’s recent price rise.

ETF Industry Sees Record Demand

The Kobeissi Letter, a widely followed financial research platform, reported that investor demand for exchange traded funds has accelerated sharply this year.

According to its data, US listed ETFs have attracted more than $380 billion in inflows so far in 2026. That represents roughly an 80 percent increase compared with the first two months of 2025.

The firm described the current pace of inflows as a historic surge in investor demand for ETF products.

While Bitcoin and Ethereum funds experienced periods of outflows in the past, recent weeks suggest a strong rebound in investor confidence.

If the trend continues, analysts believe institutional demand could remain a key factor supporting the cryptocurrency market in the coming months.