March 27, 2024
Bitcoin's at $65,503, Dips from Recent All-Time High
Bitcoin price today

Bitcoin’s at $65,503, Dips from Recent All-Time High

Tuesday, March 5, 2024: Bitcoin price dips to $65,503, slightly lower than its earlier peak today. Setting the stage for the next bull run, Bitcoin surged to a new all-time high (ATH) of $69,300 today, marking a pivotal moment nearly two and a half years post the last bull market’s peak. This extended journey began in November 2021, witnessing Bitcoin’s momentum decline and transforming from a strong bull market to a prolonged crypto winter.

Crypto enthusiasts endured a wait until the outset of 2023 for signs of recovery. Subsequently, BTC’s price exhibited a steady climb, entering a phase of new price discovery. However, navigating this uncharted territory poses challenges for investors and traders, as historical data becomes less informative, and traditional resistance or support levels are absent.

Chris Dunn, a seasoned crypto investor and Bitcoin educator, shared insights on what to anticipate as Bitcoin enters this price discovery phase. In the short term, Dunn expects a domino effect to propel Bitcoin to higher heights. He anticipates accelerating the trend through the ATH break, fueled by breakout purchases, short liquidations, and potential sellers withdrawing their offers from order books.

Bitcoin’s ascent has been remarkable over the past year, particularly since February 16, marked by substantial green candles propelling the price by 25%. Contrary to expectations of a pullback, on February 27, another significant green candle elevated the price by an additional 25%, surpassing the $60,000 level.

These unexpected upward movements caught many Bitcoin short traders by surprise. On February 27 alone, data from CoinGlass indicates that $161 million in BTC shorts were liquidated within 24 hours, amounting to a total of $268 million as Bitcoin briefly touched $57,000.

Short liquidations, where traders covering bets on a price decline are forced to repurchase Bitcoin, often at a higher price, can trigger a short squeeze. This phenomenon intensifies buying pressure, leading to rapid price increases and heightened volatility in the Bitcoin market.

The approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission has significantly impacted the market. BlackRock’s iShares Bitcoin Trust surpassed $10 billion in assets under management within just over seven weeks, contrasting with the two years it took the first U.S. gold-backed ETF to reach the same milestone in 2004.

Will Clemente, market analyst and Reflexivity Research co-founder highlights the extraordinary success of Bitcoin ETF inflows, surpassing those of gold. The continuous injection of capital into spot Bitcoin ETFs indicates robust demand and ongoing support from institutional investors.

As of March 4, U.S.-based spot Bitcoin ETFs witnessed net inflows of $562 million, marking the third-largest day of inflows since their trading initiation on January 11.

Dunn emphasizes the pivotal role of Bitcoin ETFs in attracting Wall Street and institutional investors, noting that ETF inflows have underscored the genuine demand for Bitcoin from these quarters.

The trajectory of capital pouring into spot Bitcoin ETFs demonstrates resilience, with net inflows remaining substantial. The continued influx of money on March 4, amounting to $562 million, reflects the sustained appeal of spot Bitcoin ETFs since their commencement. This trend underlines the ongoing enthusiasm and support for Bitcoin among investors and institutions alike.

Image by Pete Linforth from Pixabay

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