Bitcoin (BTC) is teetering on the brink of the significant milestone of $70,000, with its current trading value settling at $69,800, reflecting a slight decline of 1.7% over the last 24 hours. This fluctuation in price coincides with a resurgence of investors’ attention towards US spot Bitcoin Exchange-Traded Funds (ETFs), underscoring a renewed vigor in the cryptocurrency market.
Spot Bitcoin ETF inflows are experiencing a surge, propelled by major industry players. The ETF sector witnessed a notable transformation, with a combined influx of $418 million directed towards US spot Bitcoin ETFs. Notably, BlackRock and Fidelity’s ETFs emerge as frontrunners, attracting substantial investments and indicating a bullish sentiment in the market. Fidelity’s fund, in particular, achieves a remarkable single-day gain of $279.1 million, driven by a recent acquisition of 4,000 Bitcoins.
It appears that #Bitcoin is breaking out of an ascending triangle on the lower time frames, which could see $BTC rise toward $71,800 as long as the $70,400 support holds. pic.twitter.com/CQUyrc9vkv
— Ali (@ali_charts) March 26, 2024
According to a recent update by BitMEX Research on X, Spot Bitcoin ETFs witnessed a collective net inflow of $15.7 million on March 25. This marks a notable shift towards positivity following a series of negative flows observed throughout the previous week. It’s worth noting that the wave of profit-taking activities among investors in these Bitcoin ETFs played a role in the dip experienced by BTC during that timeframe.
Bitcoin Reward Consolidation Speculation
Hashdex enters the fray of Spot Bitcoin ETFs, debuting its Hashdex Bitcoin ETF (DEFI) in the US, becoming the eleventh player in this market segment. This launch underscores traditional financial institutions’ increasing adoption of cryptocurrencies, marking a significant milestone in integrating digital assets into mainstream finance.
Bitcoin mining reward consolidation has ignited speculation within the cryptocurrency community. An entity, yet to be identified, or perhaps a collective with a historical footprint in Bitcoin mining, has merged 2,000 Bitcoins, mined back in 2010, into a solitary wallet. With the current market value of this aggregated Bitcoin stash nearing $140 million, concerns arise regarding the potential motives behind this consolidation, particularly whether it signals an inclination towards selling.
Bitcoin Faces Profit-Taking Obstacles
The current trajectory of Bitcoin’s price movement suggests that profit-taking activities might impede its surge. Despite recent upward momentum, Bitcoin has resisted surpassing its all-time high, primarily attributed to profit-taking maneuvers.
On-chain analytics provided by Glassnode reveal a notable uptick in profit-taking instances, totaling over $2.6 billion in realized profits withdrawn from the market. This profit-taking trend is perceived as a barrier to substantial price growth, indicating a cautious stance among investors and potentially limiting Bitcoin’s ascent.
This current cycle has been a story of Re-Accumulation Ranges (green-red)
And one interesting possibility for price going into the Halving is further consolidation at highs (i.e. Re-Accumulation)
This turn of technical events would be historically accurate
It would… pic.twitter.com/HyNOlJBgMf
— Rekt Capital (@rektcapital) March 25, 2024
Anticipation looms within the cryptocurrency sphere as market analysts project the possibility of a short BTC squeeze driven by a notable buildup in short positions. This potential scenario is poised to catapult Bitcoin’s value towards the $80,000 threshold. Insights taken from CoinGlass underscore the significance of a price surge to $71,000, which could trigger substantial liquidations of short positions, amplifying the upward momentum.
Delving into the technical landscape of BTC/USD, the current price hovers around $69,800, positioning the cryptocurrency at a pivotal juncture. Notable resistance levels lie at $70,000 and $75,000, while support is anticipated at $65,000, with the weekly low resting at $61,224. Amidst this backdrop, indicators offer a nuanced perspective.
The Moving Average Convergence Divergence (MACD) exhibits a dip below the signal line, hinting at a potential downtrend in the offing. Meanwhile, the Relative Strength Index (RSI) stands at 52, portraying a neutral stance in the market, awaiting decisive momentum to dictate future trajectories.
Recent data from Santiment indicates a decline in the amount of Bitcoin held on centralized exchanges (CEXs), with outflows surpassing inflows. As of March 22, exchange reserves stood at just over 836,000 BTC compared to the total supply of 18.82 million BTC. This decrease in exchange-held BTC, amid a backdrop of profit-taking, contrasts with previous bearish sentiments, including JPMorgan’s warning of potential price declines.
Read More: Bitcoin Price Prediction 2024 – 2040