Bitcoin (BTC) has a difficult week ahead as the price attempts to hold above $65,000. The world’s most popular cryptocurrency hit fresh all-time highs last week but suffered a major pullback with selling interest intensifying over the weekend.
According to TradingView, BTC reached an intraday low of $64,522 on Bitstamp on March 17, 2024 which is the lowest since the correction began. Investor sentiment has been hurt by a series of descending peaks and failed upturns. Selling pressure remains rampant as we approach the weekly candle close.
A popular trader, Skew pointed out that there might be a support area for buyers between $60,000 and $67,000 on major exchanges. It indicated that Takers (Market Selling) may have driven most of the sales through analysis on X (previously Twitter).
Skew also pointed out that there had been a constant spot selling since $74K, mainly from Coinbase & Binance; but at the same time, it mentioned some who are dollar cost averaging (DCA) buying at these lower costs, leading to short term price rebounds.
Bitcoin Bullish Sentiment Persists Despite Correction
In spite of the recent slump, some analysts still maintain their positive outlook for the future of Bitcoin. The current pullback is at roughly 12%, this correction is much less severe (compared to those) that were witnessed during prior bull runs. Historical data suggests that these corrections are healthy for the overall uptrend.
Thomas Fahrer, the CEO of Apollo, a decentralized online cryptocurrency platform which publishes crypto reviews that follow ETF inflows, also shares this feeling on X. Fahrer described it as a “Bear Trap” and singled out the resumption of buying from US Bitcoin ETFs on March 18 as a potential catalyst for a rebound.
He stresses the importance of further institutional acceptance stating that Bitcoin ETFs will soon be awash with liquidity. Not even real money has begun to be allocated. If a $1B Hedge Fund position sends BTC down 10%, where do you think $150B from advisors will take it? These comments may imply that a lot of institutional capital is about to flow into Bitcoin in the next few months.
This week will be crucial to Bitcoin as it tries to find support and reverse the current downtrend. Continuous buying by institutions, future gap-filling possibilities, and a long-lasting market can eventually help Bitcoin jump back to its record peak. Yet the selling pressure and general market sentiment are going to be closely watched in the days ahead.
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