- The Bitcoin rally has stalled amid a sharp increase in the outflow of funds from trading platforms and ETFs.
- Since January, there has been a clear trend towards an outflow of funds from crypto platforms. In particular, on March 27, the third largest outflow of funds in history was recorded.
- A reversal of these flows, coupled with lower volumes and the liquidation of large long positions, points to a fall towards the $60,000 zone.
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The rally stalled above the key $70,000 level the other day, indicating that the bulls’ enthusiasm is waning. The cryptocurrency eventually stabilized at $67,000. This slowdown coincides with significant outflows from cryptocurrency-linked exchange-traded funds (ETFs).
A clear trend towards an outflow of funds from crypto platforms has been ongoing since January, and it did not slow down in March. Thus, on March 27, the third largest outflow of funds in history was recorded – 22 thousand tokens worth $1.54 billion.
Following a sharp increase in inflows into ETFs since January 10, the trend has recently reversed, reflected in a decline in trading volumes and an outflow of $931 million last week. In addition, large long positions of approximately $312 million were liquidated in early April, signaling a possible price drop towards $60,000.
With the Bitcoin halving approaching, market participants are actively speculating about what impact it will have on the current uptrend. Some believe that the impact of the halving may be limited this time, since the lion’s share of bitcoins has already been mined. Miners have mined approximately 93% of Bitcoin, so the impact of the halving on the price of the cryptocurrency will likely not be as severe as in previous cycles.
Interestingly, although the halving is just ahead, the price of Bitcoin has already reached new highs, deviating from the historical pattern. This means that the market may have already largely taken into account in the quotes the expected price change in the current phase.
According to Grayscale analysis, the bull market continues, and this indicates the potential for further growth, despite the halving effect already embedded in quotes.
Technical outlook: $60,000 is a key buying zone
The market is currently undergoing a correction, with the key level located around $60,000. This is the demand zone, and judging by how the situation developed in March, buyers will be active in this area.
If the $60,000 level is broken, the next target could be support around $53,000. If the correction scenario is rejected, the price will break through resistance at local peaks just below $73,000.
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Disclaimer: This article was written for informational purposes. It does not constitute a solicitation, offer, advice, consultation or recommendation for investment and is therefore not intended to induce the reader to purchase assets. Please remember that any asset is assessed based on various parameters and is subject to significant risks, which means that the reader must make his own investment decisions and bear the associated risks.
2024-04-04 16:34:25
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