Bitcoin experienced a significant drop towards $60,000 on March 17, amid continued selling pressure over the weekend. This movement marked a departure from the new all-time highs set earlier in the week, showcasing a period of heightened sell-side activity and failed attempts at recovery. The constant offloading of Bitcoin, particularly noted on platforms like Coinbase and Binance, led to a series of price declines, with the cryptocurrency hitting lows of $64,522 on Bitstamp.
Analysts, including the popular trader Skew, have pinpointed the $60,000 to $64,000 range as critical for potential buyer interest on major exchanges. The driving force behind the recent sell-off has been attributed to market sellers, with a noticeable “constant spot selling” since Bitcoin reached $74,000. Despite this, some market participants have been capitalizing on the lower prices to engage in dollar-cost averaging, contributing to short-term price bounces.
This correction, amounting to about a 12% drop from recent highs, is viewed within the context of Bitcoin’s bull market trends, which have historically included deeper pullbacks while maintaining an overall uptrend. The optimism among market observers is partly due to the anticipated resumption of buying by U.S. spot Bitcoin exchange-traded funds (ETFs) on March 18, with some predicting a substantial influx of institutional money into Bitcoin in the near future.
The closing of the CME Group’s Bitcoin futures market on March 15 at $69,135 and the subsequent opening gap have led some to speculate about a potential early-week recovery. This gap in the futures market, a common phenomenon, could serve as a catalyst for price stabilization or even a rebound, following historical patterns.
In light of these developments, the Bitcoin market is at a crucial juncture, with traders and analysts closely monitoring for signs of a bear trap or the strength of the support levels around $60,000. The coming weeks could prove pivotal in determining the direction of Bitcoin’s price trajectory amidst the swirling rumors of fresh institutional investment and the dynamics of the futures market.