Bitcoin ETF Demand Strong Despite Market Dip: Other Cryptocurrencies Show Mixed Performances
Summary:
Despite Bitcoin's recent dip, demand for Bitcoin Exchange-Traded Funds (ETFs) remains strong. They recorded substantial net inflows on March 26 and 27, following five days of outflows. BlackRock CEO Larry Fink expressed positivity regarding Bitcoin's future, while analysis platform CryptoQuant reported a significant rise in Bitcoin’s demand. The cryptocurrency market's future trends are currently uncertain, with mixed performances observed across other cryptocurrencies including Ethereum, Binance Coin, Solana, XRP, Cardano, Dogecoin, Avalanche, Shiba Inu, and Toncoin.
The recent slump in Bitcoin's (BTC) price hasn’t dampened the appetite for Bitcoin Exchange-Traded Funds (ETFs). Following five days of consistent net outflows last week, there’s been a significant recovery with net inflows of $418 million into ETFs recorded on March 26 and a further $243 million on March 27, according to data from Farside Investors. BlackRock CEO Larry Fink expressed his pleasant surprise in an interview with Fox Business regarding the performance of his firm's Bitcoin ETF, which set a record as the fastest growing ETF ever. He remained optimistic about Bitcoin’s long-term prospects. CryptoQuant, an on-chain analytics platform, reported in its latest ‘Weekly Crypto Report’ that Bitcoin’s demand spiked from 40K at the start of 2024 to 213K on March 26, hinting at a potential liquidity crisis within the next twelve months.
It remains uncertain whether Bitcoin will maintain its recovery to surpass its historic high before the next Bitcoin halving occurs. Will it spur further buying in other cryptocurrencies, or altcoins? A close examination of the charts could shed light on this.
In spite of profit-taking activities observed on March 26 and 27, one positive sign is the market bulls' efforts in maintaining Bitcoin's price above the pennant. The reversal could possibly lead to a rally to $80,000 if buyers manage to increase the price beyond $73,777.
For Ethereum (ETH), while resellers are operating around the $3,678 mark, there is a noticeable effort by market bulls to sustain the 20-day EMA ($3,530). If the price can breach $3,678, a rally to $4,100 is more likely.
However, Binance Coin (BNB) seems to be encountering difficulties with the bears defending the 61.8% Fibonacci retracement level of $588. For Solana (SOL), its recovery is stumbling at $196, suggesting that the sellers are taking advantage of relief rallies near the overhead resistance of $205.
Hovering between the uptrend line and $0.67 for the past days, XRP (XRP) demonstrates a standstill between the buyers and sellers. In contrast, Cardano (ADA) seems to have the bears striving to keep the price below $0.68.
Moreover, Dogecoin (DOGE) surged over the $0.19 to $0.21 resistance zone on March 28, showing that the bulls are making strong buying moves. The slight advantage to traders is demonstrated by the upslope of the 20-day EMA ($52) and positive territory of the RSI for Avalanche (AVAX). With the recent recovery of Shiba Inu (SHIB) climbing above the resistance line, the selling pressure seems to subside. Lastly, Toncoin (TON) is observing a correction, but the pullback is receiving support at the 38.2% Fibonacci retracement level of $4.78.
Published At
3/28/2024 8:30:00 PM
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