The trading day of March 25 saw Bitcoin (BTC) opening above the $67,500 mark, propelled by an 8% recovery over the weekend led by bullish sentiment, following a sell-off of Bitcoin ETFs worth $840 million the previous week.

Last week, Bitcoin faced downward pressure as ETFs contributed to selling activity, prompting concerns about increased volatility in the upcoming week according to on-chain data trends.

The surge in Bitcoin price to as high as $67,600 on March 25 was largely attributed to significant post-market purchases by whale investors based in the United States during the weekend.

Bitcoin ETFs experienced their largest weekly net outflows since their inception, with outflows exceeding $800 million. This contributed to a decline in Bitcoin prices to around $65,000 by the close of trading on March 22.

However, on-chain data reveals that strategic whale investors capitalized on the price dip over the weekend to accumulate more BTC, resulting in an 8.3% price rebound.

The Coinbase Premium Index, which tracks the difference in BTC prices between Coinbase Pro and Binance exchanges, reflected increased buying activity on Coinbase Pro as BTC dipped below $65,000 on March 22, maintaining positive values throughout the weekend.

Positive values of the Coinbase Premium Index indicate heightened buying activity among US-based whale investors, leading to slightly higher prices on Coinbase compared to Binance.

Despite the weekend's upward pressure on BTC price, other significant market metrics suggest potential volatility in the week ahead.

Long-term investors have been observed moving BTC worth $6.4 billion, potentially signaling a major sell-off ahead of the 4th Bitcoin halving event scheduled for April 20.

On March 23, long-term investors transferred 97,737 BTC coins previously held dormant for over a year, valued at over $6.4 billion at the current price of $67,500, into circulation. This movement of long-held coins ahead of a significant network event like the Bitcoin halving typically indicates an impending sell-off.

While there's a possibility that these long-term holders have shifted the coins into a different storage option, the substantial increase in BTC prices since March 2023 incentivizes them to sell. Consequently, if this fresh supply of BTC starts entering the market, it could lead to significant volatility in the week ahead.

Considering the surge in dormant BTC supply in circulation, Bitcoin price may face intense sell pressure in the coming week, potentially hindering its rally to new all-time highs above $75,000. While bullish sentiment currently prevails with an 8% weekend rebound, breaking above $70,000 may encounter resistance, as indicated by high-leverage short positions mounted around the $68,400 territory. If BTC manages to surpass $70,000, minimal resistance is anticipated on its path to $75,000.