On the 17th of March, Bitcoin (BTC) made an abrupt lunge towards a formidable threshold of $60,000, as persistent selling protracted its existence into the weekend period, thus painting a rather downtrodden picture.
Perpetual Selling Exerts Mounting Pressure on BTC Valuation
A meticulous examination of the data collated by Cointelegraph Markets Pro and the comprehensive finance platform TradingView, exposed disheartening new lows for Bitcoin, plummeting to a dismal $64,522, as recorded on the esteemed Bitstamp platform.
Post reaching an unforeseen zenith within the weekly framework, Bitcoin was confronted by a significant surge of selling pressure, embodying an unpleasant cycle of terminal lows followed by unsuccessful attempts at recovery.
This daunting mise-en-scène was further exacerbated by an ongoing barrage of offloading that gathered momentum much earlier than anticipated, casting a sorrowful shadow well in advance of the eagerly awaited end-of-week candlestick chart conclusion.
The amateur-Spéculateur and prominent trader, Skew, dissected the dilemma, highlighting several zones of interest for potential buyers operating across major platforms. His analysis primarily focused on the critical interval between $60,000 and $64,000.
“The principal driving force behind the relentless liquidation are, essentially, market sellers or ‘takers’,” Skew expounded on his post via X (the erstwhile Twitter).
“An incessant contribution of spot sell orders have been marked from a high of $74K, conspicuously driven by coinbase & binance.”
Skew also revealed that certain entities are resorting to large-scale dollar cost averaging (DCA) at these dismal lows, which should ameliorate the impact and aid in bouncing back from these short-term downturns.
Thus, the latest depressions in Bitcoin’s bullish market comprise approximately 12% of its value. Historically, Bitcoin has endured similar sell-offs, nevertheless, maintaining an overall healthy uptrend.
Despite a seemingly gloomy outlook, key market pundits have expressed continued optimism, buttressed by the imminent buying activity from United States Bitcoin ETFs, slated to recommence on March 18th.
“Be under no illusion, this is a classic Bear Trap,” commented Thomas Fahrer, CEO of Apollo, a portal dedicated to crypto-centric reviews and ETF flows, responding to the conjecture on X.
“Expect a deluge of liquidity to rush towards the Bitcoin ETFs. Substantial investments are yet to commence. If a mere 1B Hedge Fund allocation caused a 10% landslide in BTC, imagine the impact of a staggering 150B influx from advisors.”
Fahrer’s anticipations seemingly encapsulate whispered rumors of an impending cascade of institutional wealth allocation to BTC in the upcoming months.
At close quarters, Bitcoin futures display a startling $4,000 disparity
With more than 12 hours left until the weekly close, many are positing the possibility of a comeback in the early phase of the new week.
In contrast to the seemingly bearish trend, a prospective solution could lie in the form of a gap in the Bitcoin futures market of the renowned CME Group. This gap rapidly expanded over the weekend’s drawdown and could potentially provide impetus for a recovery, as substantiated by historical trends.
The CME futures closed on March 15 at $69,135, and the resultant “gap” between this and the spot price could potentially serve to stoke Bitcoin’s dormant volatility — in line with historical records.
This article does not purport to offer investment advice or recommendations. All investments and trading maneuvers carry inherent risks. Readers are advised to conduct their independent research and arrive at informed decision.
