Bitcoin Stumbles Towards $60,000 Amid Prolonged Sell-Off; Potential Recovery Expected
Summary:
Bitcoin's price hovered around $60,000 on March 17 due to continuous selling over the weekend. Leading market observers indicate that the sustained selling from Coinbase and Binance since $74,000 majorly drives this. There are signals of a possible early-week recovery emphasized by a gap in CME Group's Bitcoin futures market.
As the selling wave continued over the weekend, the price of Bitcoin (BTC) stumbled towards $60,000 on March 17. BTC's pricing action saw pressure due to the persistent sales in the spot market, according to Cointelegraph Markets Pro and TradingView data. This was evident in Bitstamp's new low of BTC prices at $64,522.
Over the week, Bitcoin grappled with significant pressure from the sell-side after striking new peaks. A row of lower lows marked its performance, punctuated by unsuccessful attempts at recovery. Ahead of the much-watched weekly candle close, shedding of assets accelerated.
Skew, a popular trader, studied this situation and delineated areas of appeal to bidders on leading exchanges - principally ranging from $60,000 to $64,000. According to a post on X (formerly Twitter), the sell-off has largely been powered by takers (market selling), especially from coinbase & binance since $74K.
In addition to this, Skew noted that certain organizations were participating in massive dollar cost averaging (DCA) at the lows, instrumental in sparking the small timeframe rebounds. Consequently, Bitcoin's most recent bull market correction amounted to roughly 12%. In contrast, earlier cycles witnessed far steeper pullbacks while securing the wider upward trend.
With this in mind, market participants with a bullish outlook remained hopeful. They highlighted the continuous buying from the US spot Bitcoin exchange-traded funds (ETFs) set to resume on March 18.
Thomas Fahrer, CEO of Apollo - a crypto-focused review platform, responded on X, "This is indeed a Bear Trap.” He also anticipated the arrival of a liquidity waterfall on Bitcoin ETFs, asserting that actual money hasn't commenced allocation yet. In this context, he posed a rhetorical question as to how much a $150B allocation from advisors would elevate BTC, if a $1B Hedge Fund position caused a 10% downward swing in BTC prices.
Fahrer's assertions seem to echo whispers of a possible influx of institutional wealth into BTC in the upcoming months.
With the weekly close looming in a little over 12 hours, some are hopeful for an early-week recovery. Between the gloomy streak, a silver lining could be found in a gap in CME Group’s Bitcoin futures market. This gap rapidly amplified over the weekend's shedding; historical trends suggest it could trigger relief. The closing of the CME futures on March 15 at $69,135 and the resulting 'gap' from the spot price can perhaps serve as a springboard for recovery.
Please note: This news piece doesn't offer investment advice or recommendations. All investments and trading decisions carry inherent risks. Readers should undertake independent research when making decisions.
Published At
3/17/2024 11:21:40 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.