Bitcoin (BTC), after a meteoric rise to new highs, is now facing the reality of its price. Investors are wondering whether the recent price drop is just a temporary setback, or an indication of more negative future.
This is the most popular cryptocurrency in the world. intraday low of $64,620 The 17th of March saw a dramatic drop in the value from its previous peak, which was above $73,000. Analysts have cited declining profitability as well as a decline in the number of daily active accounts on the network to explain this pullback.
Bitcoins down by 7% in the past week Source: Coingecko
There is a shadow that bears looms
As we move closer to the election, analysts say investor sentiment remains weakened by successive descending peaks, and failed upward movements. “weekly candle close.” This is echoed in data collected by IntoTheBlock which shows a steep decline in the numbers of addresses “In the Money,” Signifying a decline in profitability across the Bitcoin network.
Source: IntoTheBlock
Find Support: The Beacon of Hope
But not all are in panic mode. The technical analysis indicates that buyers could find support between $67,000 and $60,000 Skew is a well-known trader who highlights the area between $60,000 and $67,000 as an important turning point. Skew also points out that major exchanges, like Coinbase or Binance have been selling significant amounts of spot.
$BTC Spot Market Data Thread in Partnership @_WOO_X $BTC Binance Spot
Weekend spot buyer hereSpot Supply ($72K – $74K)
Spot demand ($60K).It is interesting to note that the last bounce, which was also sold in resulted lower quotes for a pile of limit offers.
~ Keep an eye on those bids… pic.twitter.com/3PKHyddNlv— Skew Δ (@52kskew) March 17, 2024
Bulls On The Horizon, Are The Giants Waking Up?
Although the near future is uncertain, many analysts are still bullish about Bitcoin’s prospects in the long term. Some analysts see the current correction in a bull market as healthy and normal. They point to past data that shows similar pullbacks led to future growth.
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Potential institutional capital returning to the market is sure to fuel the flame of optimism. Potential catalysts of the recovery are the recent return of US Bitcoin ETF buying and the prospect that hedge funds and advisors will be bringing in significant funds over the next few months.
Weekly chart of BTCUSD: Trading at $68.087 TradingView.com
Thomas Fahrer, the CEO of Apollo, a cryptocurrency decentralized platform renowned as a comprehensive online crypto review and an analysis of ETF flows, echoed sentiments about X.
The current state of affairs is described by the driver as: “Bear Trap” The resumption on 18 March of US Bitcoin ETFs as a catalyst for X’s upward rise is highlighted.
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In addition to highlighting the increasing institutional acceptance of Bitcoin, Driver anticipates that there will be a significant increase in Bitcoin ETF liquidity, indicating that institutional capital has yet not materialized in large amounts.
Get Ready for A Volatile week
This week is crucial for Bitcoin. In the coming days, the resilience of Bitcoin and its capacity to overcome current pressure will be tested. The possibility of a return towards record highs is still there if bulls regain their control. If the downward trend continues, Bitcoin may face an extended period of correction.
Chart from TradingView, Featured Image from Pexels
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