May 25, 2024
Bitcoin's at $66,617, Absorbs $100M+ Sell Pressure
Bitcoin price today

Bitcoin’s at $66,617, Absorbs $100M+ Sell Pressure

Friday, April 5, 2024: Bitcoin Price trades at $66,617, it has shown remarkable resilience in the face of potential market corrections, with sellers failing to trigger a classic bull market downturn. According to data shared by Checkmate, the lead on-chain analyst at Glassnode, BTC’s price drawdowns have barely surpassed 20%. Despite retracing from its recent all-time high of approximately $74,000, Bitcoin’s corrections have remained relatively mild in percentage terms.

Source: Tradingview

Comparing the current market dynamics to historical bull markets, Checkmate highlighted that the recent corrections have been notably less severe. Even at the peak of profit-taking and selling pressure, BTC has only experienced drawdowns of up to 20%, with most corrections hovering around 15.8%. This resilience is particularly striking when contrasted with the previous bull cycle, which witnessed pullbacks exceeding 50%, including the significant 61.4% downturn during the COVID-19 outbreak in March 2020.

Checkmate expressed surprise at the absence of a substantial correction, acknowledging that while historical statistics favor such downturns, the current market has defied expectations. Despite concerns about potential corrections, Bitcoin’s market dynamics have undergone significant shifts in 2024, largely influenced by the introduction of United States spot Bitcoin exchange-traded funds (ETFs).

Impact of ETFs on the Bitcoin Market

Since their launch in January, these ETFs have accumulated over 500,000 BTC, providing considerable support on the buy side. Coupled with a decrease in BTC balances on exchanges to multi-year lows, this influx of institutional investment has fueled bullish sentiment and optimism for a return to price discovery.

While recognizing the remarkable performance of ETFs, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, urged observers to maintain perspective. He emphasized the significant inflows into ETFs and suggested that without them, Bitcoin’s price might have been significantly lower. Balchunas also highlighted the occasional net withdrawals from ETF products, indicating standard investor behavior.

Bitcoin holdings (screenshot). Source: Apollo

Cautious Optimism Amidst ETF Performance

While ETFs have undoubtedly played a crucial role in shaping Bitcoin’s market dynamics, cautious optimism prevails amidst their record-breaking performance. As investors continue to navigate the evolving landscape, attention remains focused on Bitcoin’s resilience and its ability to withstand potential market corrections, providing insights into the cryptocurrency’s maturing market dynamics.

Photo by Alesia Kozik

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