Bitcoin commenced trading on March 25 above the $67,500 mark, marking an 8% weekend recovery spurred by US-based whale investors following a significant sell-off of Bitcoin ETFs totaling $840 million the previous week.
Last week saw Bitcoin battling bearish pressures as ETFs intensified selling, leading to heightened volatility anticipated for the upcoming week according to on-chain data trends.
The surge in Bitcoin’s price can be attributed largely to swift post-market acquisitions by US-based whale investors, propelling the price as high as $67,600 in the early hours of March 25.
Notably, Bitcoin ETFs experienced their largest weekly negative netflows since their inception, with outflows surpassing $800 million, consequently driving Bitcoin prices downwards towards $65,000 by the close of trading on March 22.
However, strategic whale investors capitalized on the price dip over the weekend, leading to an 8.3% rebound in Bitcoin’s price, as indicated by on-chain data.
The Coinbase Premium Index, illustrating the disparity in BTC prices between Coinbase Pro and Binance exchange, saw an upward swing as Bitcoin’s price dipped below $65,000 on March 22, maintaining positive values throughout the weekend. This suggests heightened buying activity among US-based whale investors, resulting in slightly elevated prices on Coinbase compared to Binance.
While the surge in buying pressure led to an 8% increase in Bitcoin’s price over the weekend, other key market metrics hint at potential volatility in the week ahead.
Long-term investors have been observed moving Bitcoin worth $6.4 billion, signaling a possible impending sell-off ahead of the upcoming Bitcoin halving event scheduled for April 20.
The movement of 97,737 BTC previously held dormant for over a year on March 23 highlights the potential for a substantial sell-off, particularly considering Bitcoin’s significant price appreciation since March 2023.
This influx of dormant BTC supply into circulation could potentially trigger heightened market volatility in the coming days, potentially hindering Bitcoin’s rally towards new all-time highs above $75,000.
Despite the current control held by bulls following the weekend rebound, the presence of leveraged short positions around the $68,400 mark suggests challenges in surpassing the $70,000 threshold.
In conclusion, while the market faces the prospect of intense downward pressure, a breakthrough above $70,000 could pave the way for Bitcoin’s ascent towards $75,000 with minimal resistance.
