Bitcoin (BTC) Supply On Exchanges Slips To 4-Year Low, Impact On Price

Technology

10X Returns Beckoning As BTC Approaches $70K? – Crypto News

Published

12 months ago

March 21, 2024

Dripp

Bitcoin price forecast: The crypto market led by Bitcoin made a surprise recovery on Thursday morning, during Asia business hours. Bitcoin tagged $67,000 before pulling back to collect more liquidity at $66,850 (current market value) while sustaining a 5% increase in the last 24 hours.

The second-largest cryptocurrency, Ethereum (ETH) surged by 7.5% after mirroring Bitcoin’s move to trade at $3,527 during US business hours. Meanwhile, Solana (SOL) emerged among the top gainers amid signs of approaching the $200 level. Meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) are also in the green, underpinning rising interest among traders.

Bitcoin Price Forecast: Will Bitcoin Rally Before Halving?

Bitcoin’s breakdown from the all-time high to near the $60,000 level left many investors wounded except for those who took profits. For a moment, the bull market dimmed, as experts projected further losses.

There was a noticeable setback in the ETF market with negative daily total net inflows posted for several days this week, reported in Bitcoin price prediction on Wednesday.

The ETF volumes have continued to drop according to data by SoSoValue which shows the net inflows for all ETFs at -$261.65 million. Apart from Grayscale, which has witnessed the largest outflows since the ETF launch, BTCO is the only other product in the red at -$10.2 million as of March 20.

Bitcoin ETF data | SoSoValue

Although the cumulative total net inflow has reached $11.41 billion, the ongoing outflows are of concern, especially for investors investors buying BTC because of the improved sentiment.

Despite the worrisome aspect of Bitcoin ETFs, Bitcoin soared to highs above $67,000 today, lifting most altcoins with it. As it settles above all key moving averages including the 200-day Exponential Moving Average (EMA), the 50-day EMA, and the 20-day EMA (the purple, red, and blue lines on the chart), the previously shaky structure could find new life for gains above $70,000.

Bitcoin price prediction chart | Tradingview

The 50-day EMA is the immediate support level at $66,880. Several four-hour closes above this area would signal the ability to uphold the uptrend above $70,000.

Although the Relative Strength Index (RSI) dons a bullish outlook, it cannot be relied on fully until it breaks above the descending trendline resistance. Bitcoin’s movement above $70,000 would also be buoyed by a break above the dotted trendline.

If support at the 50-day EMA weakens possibly due to profit-taking, it might be wise to wait until Bitcoin price secures another lower support area for dollar-cost averaging.

Potential support areas in case of a fresh round of declines include the 20-day EMA at $65,940, the 200-day EMA currently holding at $62,430 as well as the continuous trendline.

The Moving Average Convergence Divergence (MACD) reinforces the uptrend after confirming a buy signal on the four-hour chart. Traders are likely to keep buying BTC as long as the blue MACD line holds above the red signal line and histograms stay green.

Some whales have also been on a buying spree. For instance, blockchain transactions tracking company, Lookonchain highlighted an investor who “has been buying $BTC on dips since $BTC dropped on March 14.”

A whale has been buying $BTC on dips since the $BTC dropped on Mar 14.

He has accumulated 4,451 $BTC($294.6M) from #Binance at an average price of $66,195.

With the rise of $BTC, he started making money, with an unrealized profit of ~$3.35M.

Address:… pic.twitter.com/dikaQjCd6m

— Lookonchain (@lookonchain) March 21, 2024

After accumulating 4,451 BTC worth around $298 million at the prevailing exchange rate, the whale has today purchased another 673 BTC worth approximately $45 million.

With such an uptake of BTC among whales, Bitcoin price could build momentum for a breakout above $70,000 while eyeing new all-time highs towards $80,000 pre-halving.