Bitcoin Reaches High of $71,000 Despite GBTC Outflows and CME Futures Gaps
Summary:
On March 25, Bitcoin (BTC) surpassed the $69,000 mark, achieving its highest daily value in ten days. The Wall Street trading session saw BTC's price rise by up to $4,600, with the good performance continuing throughout the day to breach $71,000. While GBTC outflows remained steep, Bitcoin managed to break the barrier and eye a six-figure valuation. Meanwhile, certain analysts highlighted the existence of "gaps" in CME Group's Bitcoin futures market, with some not viewing these as concerning for BTC's price dip.
On March 25, Bitcoin (BTC) surpassed the $69,000 mark, with bulls regaining control over a crucial resistance area. The latest data from Cointelegraph Markets Pro and TradingView suggests that BTC/USD has achieved its highest daily close in a decade. During the inaugural Wall Street trading session, BTC's price rose by up to $4,600, shifting the market mood. Even after the Wall Street trading session ended, Bitcoin's strength persisted, breaching $71,000 at press time.
Tedtalksmacro, a financial analyst, observed that US Bitcoin spot exchange-traded funds (ETFs) witnessed an influx of investment, reversing a prior trend of net outflows. The past week saw these ETFs experiencing "red" days, with subpar activity dovetailing with record outflows from the Grayscale Bitcoin Trust (GBTC).
"Bitcoin spot ETFs witnessed an inflow of $15.4M on Monday, following five consecutive days of outflow. Fidelity contributed $262M to this," Tedtalksmacro posted on X (formerly Twitter), noting the resurgence of buyer interest.
While GBTC's outflows remained steep with a documented $350 million, according to British investment firm Farside, BTC/USD managed to combat these obstacles to achieve growth. Optimistically eying the future, prominent trader and analyst Matthew Hyland speculated that the route to Bitcoin's six-figure valuation may be clearing.
He stated on X, "If this represents Bitcoin clearing this final hurdle, a $100k sprint might be imminent." Most notably, Hyland had earlier indicated that a key BTC price metric had reset to a point not seen since Bitcoin's trading value was $40,000 late in January.
On March 20, Daily Relative Strength Index (RSI) values plunged below the critical 50 level, which Hyland construed as a positive sign for a rebound. At the time of publishing, Daily RSI was a touch over 60 — not yet in the traditional bull market zone above 70.
Meanwhile, Mark Cullen, another analyst, highlighted the existence of "gaps" in CME Group's Bitcoin futures market, which are often viewed as short-term BTC price objectives. However, a gap left over the weekend below $64,000 is yet to be filled.
"Somehow, $BTC could fill the upper CME gap, then the lower gap, and consolidate within a triangle before escalating higher," Cullen speculated. Unlike other traders, Daan Crypto Trades doesn't foresee any immediate threat of a fresh BTC price dip.
"We've seen a significant gap for the first time in a while, but it didn't instantly close. As long as the price is significantly distant, this gap isn't something to worry about. We have a tendency to leave such gaps behind during major breakouts," a post on X outlined.
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Published At
3/26/2024 10:33:52 AM
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