Bitcoin (BTC) Suffers Significant Price Downturn: New Lows of $64,522 on Bitstamp
The cryptocurrency market experienced a notable downturn with Bitcoin (BTC) leading the charge. According to TradingView reports, the price of Bitcoin reached a new low of $64,522 on Bitstamp. This downturn came after Bitcoin hit record highs and was met with considerable sell-side pressure. The price action resulted in lower lows and unsuccessful rebounds.
Analyzing Market Sentiment: Large Institutions and Individual Investors
Bitcoin’s correction saw approximately 12% decrease from recent highs. Despite this price downturn, optimistic market observers maintained a positive outlook. The ongoing buying activities in the United States spot Bitcoin exchange-traded funds (ETFs), which were set to resume on March 18, fueled their confidence.
Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, expressed his belief in the market’s resilience, referring to the current situation as a potential “Bear Trap.” Fahrer pointed to the anticipated influx of liquidity from institutional sources and rumors of significant institutional wealth allocation to Bitcoin in the coming months.
Major Exchanges: Potential Zones of Interest and Market Selling
Popular trader Skew offered insights into potential zones of interest for bidders on major exchanges, focusing on levels between $60,000 and $64,000. Skew observed that the majority of selling pressure originated from market selling, particularly noticeable since the $74,000 mark, with significant activity observed on platforms like Coinbase and Binance. However, Skew also noted some entities engaging in large dollar cost averaging (DCA) at the lows, contributing to short-term bounces.
Weekly Candle Close and Futures Gap Concerns
With over 12 hours remaining until the weekly close, some market participants remained hopeful for a potential early-week comeback. However, attention also turned to the significant gap in Bitcoin futures, which neared $4,000. While Bitcoin’s price volatility continues to attract traders and investors, concerns about unfilled futures gaps add an element of uncertainty to short-term price movements.
Price Action and Market Sentiment: A Rollercoaster Ride
Bitcoin’s recent price action has been characterized by heightened volatility and notable sell-side pressure following its surge to new all-time highs. Despite facing a correction of around 12%, market sentiment remains cautiously optimistic, driven by expectations of continued institutional interest and buying activities from Bitcoin ETFs. However, uncertainties persist, particularly regarding the potential impact of unfilled futures gaps and the broader macroeconomic landscape.
