Bitcoin Retests $68,000 Support Amid Holiday Period; Optimism Persists for Post-Halving Highs
Summary:
On April 1, Bitcoin (BTC) retested the $68,000 support level, influenced by Wall Street's opening. Despite no major outflows from the Grayscale Bitcoin Trust, a return of institutional flow couldn't promote further growth. Traders, including Daan Crypto Trades, have expressed caution regarding BTC's trajectory given the price drop, and predict tentative market behavior due to the Easter holiday period. Downward pressure may persist, fostered by interest in selling calls and purchasing puts for both BTC and ETH. The overall outlook remains optimistic for all-time highs post-halving.
On April 1, Bitcoin (BTC) tried to reassess its support at $68,000 as the Wall Street opening triggered instability. BTC/USD 1-hour chart data from Cointelegraph Markets Pro alongside TradingView revealed that the start of Q2 was troubled, with BTC's price dropping by over 4.5%. Despite the absence in Grayscale Bitcoin Trust outflows, the re-emergence of institutional flow couldn't stimulate additional growth.
Daan Crypto Trades, a well-known trader, speculated that the Easter season might influence the situation. He imparted on X (formerly known as Twitter) that Grayscale only released insignificant amounts of ETH and other coins, an action linked to the market shut down around Easter time. Beginning from tomorrow, he anticipates normal inflows and outflows.
Despite the significant outflow from GBTC–$104 million on the last day of Q1 trading, considerably less than the $642 million recorded on March 18–the outflows seem to moderate, noted Daan Crypto Trades. With BTC/USD dropping to levels unseen since March 25, traders are being cautious. Daan Crypto Trades suggests a possibility of declining further below the 200-period moving average on 4-hour scales, currently at $67,330.
The trading company QCP Capital, in its latest "New York Color" report distributed to Telegram channel members, alerted about potential "downward pressure" across cryptocurrency spot markets. Significant interest in selling calls and purchasing puts for BTC and ETH have been recorded in the past day, according to the report.
Material Indicators sets the BTC price action outlook to gloomy up until the forthcoming block subsidy halving while examining the liquidity of the exchange order book on the world's largest trading platform, Binance.
Keith Alan, co-founder of Material Indicators, spotted an uptick in liquidity for bids approaching $60,000. Despite BTC's unprecedented seventh straight green monthly close, there's no guarantee of a rise toward the Halving. "Smart Money" has placed bids staggered down to $62,000.
Alan highlighted that the Bitcoin price behavior may be creating a predicament for institutional purchasers as prices exist in relatively novel zones. He remained optimistic that once the halving passes, confidence in achieving new all-time highs will be restored. Even institutions are unsure about the price, and are content to dollar-cost average (DCA) into positions from this range. This assures a sequence of new All-Time Highs (ATH) following the halving.
Note that such articles do not supply investing advice or recommendations. Each investment and trading shift carries a degree of risk, therefore, readers must carry out their own research before making any decision.
Published At
4/1/2024 7:45:08 PM
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