- Bitcoin retests $63,000 amid a market-wide price slump.
- Grayscale’s ETF outflows tower to $642M, the highest in March.
- Chart analyst marks Bitcoin’s main support clusters to observe.
The leading digital asset, Bitcoin (BTC), continues its rollercoaster after claiming a new all-time high five days ago. The crypto bulls now face a major hurdle due to pending sells outweighing BTC bids by over $1 billion, according to on-chain data by blockchain research platform CoinPaprika.
Why Is Bitcoin Backpaddling?
Swinging back to the key support at $63,000, BTC witnessed a 7% pullback over the past 24 hours, likely influenced by Grayscale’s massive GBTC ETF outflows. According to Swan, Grayscale Bitcoin Trust (GBTC) saw $642.5 million in outflows, indicating that many investors chose to exit their positions.
The king crypto flipped a new all-time high (ATH) of $73,737.94 on March 14, 2024. However, the freshly claimed BTC price milestone backtracked 13% in less than a week. These price lows at the $63,000 support line coincided with three bearish on-chain signals in network growth, large transfers, and concentration, according to on-chain data by IntoTheBlock.
BTC Levels to Watch Out for During Bear Takeover
Bitcoin risks a $60K retest if the selling bids on Spot markets continue outperforming pending buys. However, BTC’s Relative Strength Index (RSI) points to 18.97 on the 4-hour charts, deemed bullish due to an oversold condition or demand outweighing the supply.
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Following its impressive run to $73,750, BTC is bound to use some of the claimed price ranges as support, as seen today with $63,000. If this key support doesn’t hold, BTC’s plunge below $60,000 is more likely. Crypto chart analyst Ali Martinez highlighted $61,100, $56,685, and $51,530 as the main support clusters to watch in a bearish scenario.
In a more optimistic framework, two critical resistance points to watch out for are $66,990 and $72,880. Ali marks these using the UTXO Realized Price Distribution (URPD) on Glassnode. This trading instrument allows us to understand the dynamics of BTC price movements measured by unspent transaction outputs, but other key macroeconomic factors can also come into play.
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For example, institutional interest in BiTC has weakened, according to Coinbase Premium on-chain data. Many crypto aficionados expect the upcoming United States Federal Reserve’s interest rate decision on March 20, 2024, to significantly impact Bitcoin’s price fluctuations.
As the crypto markets go through a double-digit drawdown, Fed Chair Jerome Powell’s speech tomorrow could accelerate the volatility of BTC, with some crypto analysts calling Powell’s speech “the local bottom for risk.”
On the Flipside
- Grayscale’s Bitcoin Trust (GBTC) was the only exchange-traded fund (ETF) to record negative cash flow on Monday, as Fidelity, BItwise, and Ark Invest ETFs grew by $26.2M combined.
- BlackRock’s iShares (IBIT) are leading the ETF market with $451.5M in addition to assets under management, softening the blow to $154.3M in outflows on Monday.
Why This Matters
Bitcoin’s price analysis depends on both technical and social factors, while traditional finance’s recent adoption adds a new player to the top digital asset’s dynamics.
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