Bitcoin (BTC) Forming the First Local Top Suggests Any Dip Is A Buying Opportunity

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On late Saturday, March 13, Bitcoin (BTC) topped its all-time high above $61,500 levels thereby entering the price discovery zone. However, it has registered partial retracement but is still holding above $60K strongly. At press time, BTC is trading at a price of $60,326 with a market cap of $1.123 trillion.

Looking at Bitcoin’s historical chart patterns and previous bull runs, Bitcoin (BTC) seems to be forming its first local top above $60K. comparing to its previous bull runs of 2013 and 2017, it is clear that BTC might see some partial retracement from the current levels. However, any dip in the BTC price presents a buying opportunity.

As Coingape reported, the BTC greed/euphoria zone hasn’t peaked which means that Bitcoin isn’t over-heated even at its new all-time high. Despite Bitcoin (BTC) surging more than 100% year-to-date, many market analysts are still giving higher targets. Popular Bitcoin supporter and evangelist Max Keiser thinks that the BTC price can touch $77,000 in the short term and $220,000 by the year-end. Other analysts have already given a $100K target for BTC by the end of 2021.

Bitcoin Futures Open Interest Peak to $23 Billion

As per the charts from Glassnode, the Bitcoin Futures Open Interest peaked out as the price crossed $60K levels. This could probably add more fuel for the next run-up in the Bitcoin price.

On the other hand, the Bitcoin (BTC) perpetual funding rates on all exchanges have also surged to new highs indicating more traders are going long. In its latest report, Glassnode writes:

“Funding rates seem to be both a curse and a cure right now. They create friction on the way up, which at the same time causes a slower and more sustainable price rise”.

One of the biggest positive indicators for the BTC price rally has been the continuous decline of Bitcoin (BTC) supply/liquidity at exchanges. As seen in the below chart from Glassnode, there have been massive BTC outflows at exchanges at every price surge.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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