Bitcoin Price Prediction: Why Whales Eschew Buying BTC Despite Drop To $60,000?
Highlights
- Both BlackRock and Grayscale record negative daily net ETF inflows as BTC finds stability.
- Bitcoin could settle for consolidation between $60,000 and $65,000 pre-halving.
- A pre-halving retrace below $60,000 is on the cards unless Bitcoin triggers FOMO moving above $65,000.
Bitcoin price prediction: After a gruesome start to the week, Bitcoin and select leading altcoins are stabilizing before either breaking out or continuing with the fall. The bellwether cryptocurrency has in the last 24 hours sustained above $63,000, underscoring exhaustion among bears and the unwillingness of whales and retail investors to take an early chance to buy BTC.
The bearish cloud hovering since the weekend has seen Bitcoin price plunge by approximately 14% to trade at $63,326 on Wednesday.
Bitcoin Price Prediction As The ETF Daily Net Inflow Sees Red
The rally to the new all-time high of $73,737 can majorly be attributed to the approval of Bitcoin ETFs in January. Prior to the nod on January 10, sentiment had been improving as investors bought the rumor.
Institutional and retail investors overwhelmingly jumped on the ETF bandwagon soon after, causing volumes to rise exponentially to unprecedented levels.
This increase in volume also ignited a parabolic rise in BTC as demand surged. So far, the ETF has attracted $11.67 billion in cumulative total net inflow. BlackRock’s IBIT ETF emerged as the best performer in terms of daily net inflow while Grayscale’s GBTC has continued to record negative daily net inflow.
According to market data by SoSoValue, the recent downturn in Bitcoin price has quickly impacted investor sentiment, resulting in a daily total net inflow of $326 million.
Should the negative forces in the market intensify and Bitcoin price falls below $60,000, the ETFs could face more negative daily total net inflows.
Investors may be jitter about buying the Bitcoin dip amid falling ETF volumes. The ETF fuelled the recent rally to all-time highs and without it, the price could drop below $60,000 reflecting the norm of a pre-halving retrace.
Bitcoin Stabilises On Key Support, But For How Long?
Bitcoin holds above the previous day’s open — a minor bullish signal. At the same level is the 200-day Exponential Moving Average (EMA) (the purple line on the chart), further reinforcing the bullish outlook on the four-hour chart.
A descending trendline drawn to show key levels shows that Bitcoin price has climbed above the middle boundary support/resistance and shows signs of reaching $65,000 (the upper boundary) in the upcoming few sessions.
With Bitcoin holding below the other important indicators — the 20-day EMA and the 50-day EMA (blue and red lines on the chart, recovery may not gain momentum as quickly with consolidation between $60,000 and $65,000 lasting longer.
Blockchain data analytics firm, Crypto Quant reckoned in a post on X that historically following a period dominated by shorts, Bitcoin price tends to consolidate or make a drastic recovery.
Current Market is Dominated by Shorts
“The historical pattern shows that after a period of dominant market shorts, #Bitcoin price either moves sideways or rebounds sharply.” – By @SignalQuant
Full post 👇https://t.co/BjQ2uUjejx
— CryptoQuant.com (@cryptoquant_com) March 20, 2024
The Relative Strength Index (RSI) although not oversold, currently oscillates below the midline (50) in the neutral region. Traders would like to see this indicator moving toward the overbought region to validate the potential uptrend.
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