Bitcoin Surpasses $66,000 Despite Rising Outflows from Grayscale Investment Trust
Summary:
On March 4, Bitcoin (BTC) surpassed $66,000, despite increasing outflows from the Grayscale Bitcoin Trust, its largest institutional investment fund. While some analysts predict a pattern similar to last week's volatility following swift gains, others foresee a potential correction. However, the market might overlook psychological factors and exceed the current highest record of $69,000. Price increases have remained consistent despite the recent half a billion dollar outflow from the Grayscale Bitcoin Trust.
On the morning of March 4, Bitcoin (BTC) soared over $66,000, despite the increased outflows from its top institutional investment fund. This upward swing in price was captured by BTC/USD 1-hour chart data from Cointelegraph Markets Pro and TradingView, with Bitstamp reflecting a high of $66,483. Following the weekly close, the market experienced rapid gains, with a 5% increase on the day.
As the all-time highs are just below $3,000, expert opinions suggest potential future trends. CryptoQuant analyst, Venturefounder, proposed that Bitcoin could mirror the fluctuations experienced last week where sudden gains led to instability when the largest US exchange, Coinbase, faced a system crash.
Venturefounder anticipates a similar pattern unfolding today, followed by a challenging week. Conversely, Material Indicators' co-founder, Keith Alan, maintains a vigilant approach, forecasting potential Bitcoin corrections.
Alan noted a standard "Cup & Handle" formation on the macro chart from the all-time high. To validate this pattern, some degree of pullback from the double top at the all-time high is necessary. Alan however accepts that market trends might neglect psychological factors and surpass the record highs of $69,000.
He hinted that the predictable market pattern may deter some traders, as the market often tries to penalize those with high-risk trades. Alan is currently focusing on a potential regression into the macro channel - a turn-off point lying within the $74k - $75k range that is expected to shift upwards over time.
Interestingly, despite the rising outflows from the Grayscale Bitcoin Trust (GBTC), BTC prices have steadfastly risen. Outflows, which were significantly reduced in February's second half have reversed trajectory in March, with the sum for 4th March exceeding half a billion dollars.
Well-known trader, Daan Crypto Trades, highlights this by shedding light on the substantial GBTC data on X, an internet-based platform. Regardless of the continuing decrease since mid-January, GBTC still holds the highest amount of Bitcoin holdings at 428,540 BTC ($28.9 billion), as shown by data from the CoinGlass monitor on March 4.
This report does not offer investment advice or suggestions. All investments and trades carry an inherent risk, hence individuals should independently study and make informed decisions.
Published At
3/4/2024 6:24:19 PM
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