The High Price of Deterring Russia

Bitcoin (BTC) is increasingly compressed in a narrow range as the latest effort to rally past $72,000 stalled Thursday.

BTC rallied to $71,700 earlier during the day following the European Central Bank (ECB)'s rate cut, but quickly tumbled nearly dipping below $70,000 before bouncing to $70,600 at press time, down about 1% over the past 24 hours, CoinDesk's Bitcoin index data shows.

Well-followed market analyst Skew noted concerted spot selling activity on crypto exchanges Binance and Coinbase, and a simultaneous built-up of short perpetual futures positions on derivatives marketplaces, weighing on prices.

CoinGlass data shows a significant leverage built-up around the $70,000 and $72,000 price area that could be liquidated in case of a breakout from the narrow trading range in either direction.