Bitcoin pulls back from $72K after multiple rejections at $71.5K, with shorts in profit and traders facing key decision points.
Bitcoin has pulled back sharply from its recent high of $72,000, testing traders’ patience and discipline.
With multiple rejections at the key $71,500 level, short positions are gaining momentum.
As market sentiment shifts, traders are facing one of the toughest phases holding through retracements while waiting for clear direction.
Managing Risk Through Pullbacks Is a Key Skill in Trading
Crypto trader and analyst Astronomer emphasized that this phase where price returns to entry after going into profit is one of the hardest in trading.
In a recent post, he noted: “Even if it goes back to entry, holding through it matters. This is what most don’t talk about.”
He explained that many analysts provide trade setups but rarely walk through trade management.
He also pointed out that entering and exiting a trade are challenging, but holding a position through retracements tests patience and discipline.
According to Astronomer, his community locked in three consecutive wins, with the most recent short from $72,000 reaching 2.5x reward-to-risk before partial exits.
His followers were advised to remain in the trade during a retest to entry. That decision has now proven correct, as Bitcoin continues to trade lower.
He also stated that real trading requires action, not just predictions. He criticized those on social platforms who share levels without trade planning or risk management, saying that without execution, charts alone provide limited value.
Bitcoin Fails to Break Above $71,500 for the Seventh Time
Bitcoin has now failed to break the $71,500 resistance level seven times in recent sessions. The latest attempt saw a lower high, which many traders say signals buyer fatigue.
The price has since dropped into the high $60,000s, confirming the strength of this ceiling.
Over the last several days, $71,500 became a focal point in the market. Traders had expected a breakout, but repeated failures have shifted the focus to possible downside levels.
Each failed attempt adds pressure, making short sellers more confident and long holders more cautious.
“Every rejection weakens the bullish setup,” one analyst noted, adding that price began to turn back earlier with each try.
Lower highs often indicate that sellers are stepping in sooner, and that traders are less confident in chasing upside.
The seventh attempt falling short has also pushed traders to shift their attention to key lower levels. These include $68,000 and $66,900, followed by stronger demand zones near $61,000.
Related Reading: Strategy Buys 1,142 Bitcoin for $90M as Holdings Reach 714,644 BTC
ETF Outflows and Macro Conditions Add Pressure
Spot Bitcoin ETF flows in the U.S. have shown mixed results over the past month. Although some days saw strong inflows, the 30-day trend is still negative.
Recent data shows $220 million in inflows on a single day, but a $2.6 billion outflow over the last 30 days.
This shift in ETF demand adds uncertainty to bullish expectations. Earlier in the year, ETF demand acted as a backstop for many traders during dips.
Now, traders are less certain that demand will return consistently.
At the same time, macro conditions remain tight. U.S. 10-year yields have hovered around 4.2%, adding pressure to risk assets like Bitcoin.
High yields make leverage more expensive and can slow speculative momentum in the market.
Options market data shows a growing demand for downside protection. This suggests traders are preparing for more volatility and wider price swings.
As premiums rise for puts, it signals caution among large market participants.
Source: https://www.livebitcoinnews.com/btc-shorts-pull-back-from-72k-as-traders-face-the-hardest-part-of-trading/
