Bitcoin

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After a spectacular ascent to record highs, Bitcoin (BTC) is facing a reality check. The past week has seen a dramatic price correction, leaving investors wondering if this is a temporary setback or a sign of a more bearish future.
The world’s most popular cryptocurrency reached an<a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener noreferrer nofollow"> intraday low of $64,620</a>&nbsp;on March 17th, a significant drop from its recent peak above $73,000. This pullback has triggered a wave of pessimism, with analysts pointing to declining profitability and a drop in daily active addresses on the network.
<h2 data-sourcepos="7:1-7:26" id="strong-a-bearish-shadow-looms-strong">A Bearish Shadow Looms</h2>
According to analysts, investor sentiment has been hurt by a series of descending peaks and failed upturns, while selling pressure remains rampant as we approach the “weekly candle close.” This sentiment is echoed by data from IntoTheBlock, which shows a sharp decline in the number of addresses “In the Money,” signifying a decrease in overall profitability within the Bitcoin network.
<h2 data-sourcepos="11:1-11:38" id="strong-finding-support-a-beacon-of-hope-strong">Finding Support: A Beacon of Hope?</h2>
However, not everyone is hitting the panic button. Technical analysis suggests a potential support zone for buyers between $60,000 and $67,000. Popular trader Skew highlights this area as a possible turning point, while also acknowledging significant spot selling from major exchanges like Coinbase and Binance.
<blockquote class="twitter-tweet">
 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> Spot Market Data Thread, in partnership <a href="https://twitter.com/_WOO_X?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@_WOO_X</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> Binance Spot Weekend spot buyer here
 Spot Supply ($72K – $74K) Spot Demand ($60K)
 Interestingly last bounce which was sold into also resulted in a stack of limit bids being quoted lower. ~ Keep an eye on those bids… <a href="https://t.co/3PKHyddNlv" rel="noopener noreferrer nofollow">pic.twitter.com/3PKHyddNlv</a>
 — Skew Δ (@52kskew) <a href="https://twitter.com/52kskew/status/1769187774639591825?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 17, 2024</a>
</blockquote> Bulls On The Horizon: Are The Giants Awakening?
While the immediate future appears uncertain, some analysts remain bullish on Bitcoin’s long-term prospects. They view the current correction as a natural and healthy part of any bull run, pointing to historical data where similar pullbacks paved the way for further growth.
Related Reading: <a href="https://www.newsbtc.com/news/bitcoin-crashes-dip-to-65000-triggers-over-400-million-liquidation-avalanche/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Crashes: Dip To $65,000 Triggers Over $400 Million Liquidation Avalanche</a>
Adding fuel to the fire of optimism is the potential return of institutional capital. The recent resumption of buying from US Bitcoin ETFs and the prospect of a significant influx of funds from hedge funds and investment advisors in the coming months are seen as potential catalysts for a rebound.
Thomas Fahrer, CEO of Apollo, a decentralized online cryptocurrency platform renowned for its comprehensive crypto reviews and analysis of ETF inflows, echoes sentiments regarding X.
Fahrer characterizes the current state as a “Bear Trap” and pinpoints the resumption of buying from US Bitcoin ETFs on March 18 as a potential catalyst for an upward surge in X’s value.
Related Reading: <a href="https://www.newsbtc.com/news/forget-dogecoin-shiba-inu-set-to-become-the-top-dog-expert-predicts-100-billion-market-cap/" target="_blank" rel="noopener noreferrer nofollow">Forget Dogecoin, Shiba Inu Set To Become The Top Dog: Expert Predicts $100 Billion Market Cap</a>
Emphasizing the significance of increased institutional acceptance, Fahrer anticipates a surge in liquidity within Bitcoin ETFs, suggesting that substantial capital inflows from institutional investors have yet to materialize. The Verdict: Brace For A Volatile Week
This week will be crucial for Bitcoin. The coming days will be a test of the cryptocurrency’s resilience and its ability to overcome the current selling pressure. If bulls can regain control and positive sentiment prevails, a return to record highs remains a possibility. However, if the downtrend continues, Bitcoin could face a more extended period of correction.
Featured image from Pexels, chart from TradingView

Bitcoin Threatens To Retreat To $60,000 As Bulls Seek Solid Ground

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