Bitcoin traded within a defensive absorption range between $67,000 and $68,000 as volatility narrowed. Support remained near $65,000-$67,000, while resistance kept the price near $70,000-$72,000, reinforcing directional hesitation.
Meanwhile, the MVRV Z-Score was floating near 0.41, while the MVRV ratio was around 1.21, indicating a subdued holder profitability. The Glassnode chart showed BTC remaining well below previous cycle top zones above 7.0 on the MVRV Z-Score.
Source: Glassnode
Thereafter, declining spot volumes reflect weakening participation, while a hashrate almost 940–955 EH/s prompts miners to liquidate reserves.
Gradually, long-term investors absorb this offering, limiting downside follow-on effects and compressing volatility. This process reduces free floats and positions prices for stronger bids, building resistance.
Dip buyer fatigue sets in as aggressive sales flows take hold
Building on the absorption structure, Bitcoin [BTC] recovered from lows of $60,000 but stalled around $66,500-$67,500 as sellers reaffirmed control. The Taker Buy Ratio printed 0.48, the weakest since October 2025, showing aggressive sell orders dominating the flow.
As macroinflation fears persisted, risk aversion led to positioning toward shorts, suppressing the subsequent dip.
Source: CryptoQuant
Buyers reactively absorbed the supply, but any bounce faded to $70,000 as conviction remained shallow. Meanwhile, miners have been draining their supplies under hashrate pressure, amplifying the pressure from above.
Whale cohorts then stabilized the bottom by collecting approximately 53,000 BTC per week.
Gradually, this passive absorption has extended consolidation, while at one time structurally stronger bids were being prepared ratio force approached 1.0.
ETF redemptions and CVD divergence increase BTC’s absorption structure
Expanding the absorption structure weakens institutional demand as ETF redemptions suppress marginal inflows.
Daily net Outflow reached $133 million on February 18, led by IBIT Printing -$84 million, while FBTC recorded -$49 million.
This extended a four week remission streak, by cumulative weekly losses of nearly $360 million after January’s inflow peak.
As macroeconomic fears persisted, institutions reduced their risks and secured gains after the 40% correction from October highs. Liquidity conditions tightened, prolonging market compression and eroding dip conviction.
Source: CoinGlass
At the same time CVD divergence amplifies vulnerability as spot flows turn negative and perpetual selling accelerates. Open interest shrinks by 55% to $44 billion, due to aggressive deleveraging. Funding shrinks almost -0.0088%, indicating a moderate long hunger.
Liquidations then clear excess debt, stabilizing the structure and positioning flows for eventual spot-based recovery.
Final summary
- Defensive absorption dominates by capitulating short-term supply transfers to long-term holders and whales, compressing volatility and prolonging bandwidth constraints.
- Institutional outflows and the deleveraging of 55% are suppressing recovery momentum, with deleveraging having a stabilizing structure but slowing the flow-driven upward movement.