Bitcoin has bounced more than 4% since February 19, climbing back above $68,200 after weeks of weakness. However, technical signals are flashing caution: an 8-hour head-and-shoulders pattern and a hidden bearish RSI divergence suggest momentum may be fading. On-chain data also shows large supply clusters around $66,800 and $65,636, levels that could act as pressure zones if price starts to fall. Meanwhile, derivatives markets show rising open interest and positive funding rates, while spot Bitcoin ETFs have recorded five straight weeks of net outflows.

Why does this matter? When technical weakness, heavy supply zones, ETF outflows, and growing leverage align, volatility often increases. If key support levels break, downside pressure could accelerate, making this an important moment to watch risk and market structure closely.