Bitcoin Pivots from Profits to Stabilization: Mixed Signals Confuse Investors
Summary:
Bitcoin (BTC) experience a shift from profit-making to stabilization on March 26, exhibiting mixed signs to investors. Amid speculation about future paths, expert views oscillate between a fresh bullish momentum and an extended correction. The Grayscale Bitcoin Trust (GBTC) showed significantly lower outflows than previous weeks, however, lack of sufficient bids below spot price may mean a return to lower support levels. Rekt Capital emphasized the need for stabilizing the $69,000 mark as solid support, crucial for price discovery, while suggesting we are in the "pre-halving retracement" phase.
Bitcoin (BTC) has seen a shift from profit to stabilization as the stock market opened on March 26th, having sent out various cues, leaving investors undecided. The BTC/USD exchange rate exhibited a weakening performance during the day, revealing a 3.2% slump. With the crucial all-time high of $69,000 last year under its belt, Bitcoin's future steps seemed uncertain in the wake of the swift profits made within 24 hours.
While some are betting on an uptick in bullish momentum, others predict a prolonged correction. Preliminary information from Arkham, a crypto analytics firm, pointed to outflows from the Grayscale Bitcoin Trust (GBTC) at a minimal $120 million — notably lower than the weekly average.
Daan Crypto Trades, a well-known trader, mentioned in his commentary, accompanying the stats on the X platform (previously Twitter), that despite the net outflow from GBTC standing at -$350.1M, the market price surged rapidly.
However, the absence of sufficient bids below the spot price maintained the probability of a reversal to lower support levels. "It's obvious that the path of least resistance is downward when it comes to liquidity. This isn't conjecture," claimed Keith Alan, Materials Indicators' co-founder, as part of his latest BTC price commentary on the X platform. Alan insisted on paying attention to the upcoming weekly and monthly candle closes. He surmised that the $68.9k closing level of the prior week and the last month's $61.1k might be challenged again near Sunday's candle close/open.
Rekt Capital, a noted trader and analyst, continued by highlighting the necessity of fortifying the $69,000 mark as concrete support. In his latest YouTube video, he explained that such support is crucial to price discovery, which would keep the BTC/USD within historical guidelines.
As he observed Bitcoin's price trends around the time of previous block subsidy halving events, Rekt Capital noted that we should be in the "pre-halving retracement" stage now, which will be followed by a "post-halving reaccumulation phase." "We've successfully completed the 'pre-halving rally', reaching new all-time highs. With the 18% pre-halving retrace concluded, we could be entering a stable reaccumulation phase," he elaborated.
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Published At
3/26/2024 6:17:08 PM
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