Price Analysis

Bitcoin Price Prediction: Will Powell’s Congress Testimony Impact BTC’s 12% Bounce Back?

Bitcoin price bounces back 12% from the plunge below $60,000 on Tuesday but stalls due to a robust sell wall in the range between $67,000 and $68,000.
Published by
Bitcoin Price Prediction: Will Powell’s Congress Testimony Impact BTC’s 12% Bounce Back?

Highlights

  • Bitcoin price flash drop to $59,323 triggers massive liquidations as investors count losses.
  • Bitcoin ETFs are unfazed by the sudden sell-off, as BlackRock’s IBIT leads with $788 million in daily net inflow.
  • Fed Chair Jerome Powell to testify before Congress with a focus on expected rate cuts in 2024.

Bitcoin price prediction: BTC made a shocking move on Tuesday, first breaking out to a new all-time high of $69,170 and flash falling below $60,000 moments after to $59,323, according to CoinMarketCap data.

The sudden plunge tipped off massive liquidations, exceeding $1 billion. As Coinglass data shows, liquidations in BTC accounted for approximately $800 million of the total. Moreover, the majority of the liquidations comprised longs, implying that leveraged bulls suffered immense losses.

Advertisement

What Triggered The Sell-Off?

According to some market watchers’ reports, profit-taking and miners offloading their wallets added significantly to the volatility, resulting in the flash drop. A glance at the Miner’s Outflow (Total) trends by CryptoQuant revealed a sudden spike in selling activities, especially from BTC miners.

The chart below shows the Miners’ Outflow exploding to 39,000 on March 1 and 36,000 BTC on March 5. During this period, miners transferred a colossal amount of BTC to exchanges, anticipating to sell at or near the previous all-time high.

Bitcoin Miners’ Outflow Volume (Total) | CryptoQuant

Amid the intense volatility, Bitcoin swiftly rebounded on March 6 to trade at $66,188 during US business hours. Select altcoins have also made an impressive comeback, led by Ethereum price as it makes headway above $3,800.

Uniswap (UNI), Leo Token (LEO), and Aptos (APT) are some of the altcoins recovering in substantial single-digit and double-digit percentages.

Advertisement

Bitcoin Price Prediction: Where To Next As BTC Makes Major Comeback?

The drop to $59,323 spooked investors, leaving many dealing with unexpected losses. However, BTC’s immediate rebound above $66,000 confirmed that sentiment has not changed and that the rally will continue.

Based on the four-hour chart, a period of sideways price action could take preceded before Bitcoin makes another major move above its most recent record high.

The Moving Average Convergence Divergence (MACD) indicator backs the short-term bearish outlook after presenting a call to sell BTC. If the blue MACD line holds below the red signal line and the indicator drops further toward the neutral area (0.00), more traders would be compelled to sell to buy later at a lower price level.

Bitcoin price prediction chart | Tradingview

Bitcoin’s immediate support lies with the 20-day Exponential Moving Average (the line in blue on the chart at $6,412). Several four-hour candle closes above this level will steady the uptrend, for another run toward $70,000.

If declines overshoot the 20-day EMA, confluence support created by the 50-day EMA (the line in red on the chart) and the ascending trendline (in black) will try to absorb the selling pressure.

Investors may take advantage of the discounted price to load up on BTC while betting on the continuation of the uptrend, with attributes to the well-performing Bitcoin ETFs.

BlackRock’s IBIT ETF stands out after maintaining the highest daily net inflows since the SEC gave the green light. SoSoValue, a platform tracking the performance of the products, highlighted a staggering $788 million in daily net inflow into IBIT, listed on Nasdaq.

Grayscale’s GBTC is on the other extreme, posting the biggest daily net outflow of $332 million on March 5. So far, the cumulative total net inflow reached $8.56 billion on Tuesday.

Bitcoin ETFs data | SoSoValue
Advertisement

Jerome Powell Heads To Congress To Testify

Jerome Powell, the Federal Reserve’s chair is expected to appear at Capitol Hill for Congress hearing amid mixed signals from Bitcoin and gold in the traditional market.

The lawmakers are expected to dwell on the state of the economy with rate cuts likely to take centre stage in the testimony. At the end of the previous FOMC meeting, Powell remarked saying that members did not foresee the first interest rate cut in March, with inflation coming in hotter than expected in January.

Powell and other officials of the bank have over the recent weeks emphasized that they are in no hurry to begin rate cuts, underpinning a stronger US economy.

His comments later today will provide a sneak peek into the future of the economy. Lawmakers will want to know why the Fed is holding borrowing costs high despite making commendable leaps in inflation.

Participants in the crypto market would be on the lookout for comments likely to prop Bitcoin for a rally, or those that may dampen the recovery on March 6.

Related Articles

Share
John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Price Analysis

Solana Price Prediction: Will Solana Hit $320 as SOL Strategies Gains Nasdaq Approval?

The Solana price has held steady, currently trading at around $202 at press time. Recent…

September 6, 2025
  • Price Analysis

XRP Price Forecast: Analyst Eyes $127 as BlackRock Joins Ripple Swell 2025

XRP price has stayed in the spotlight, pushing through mixed phases while holding steady above…

September 6, 2025
  • Price Analysis

Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition

Chainlink price has been carving a path of resilience, supported by steady inflows and consistent…

September 6, 2025
  • Price Analysis

Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut

Cardano price is eying a 30% surge in the coming weeks after forming a highly…

September 5, 2025
  • Price Analysis

ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?

Ethereum ETF products have gained increased attention as the market observes new institutional entries. At…

September 5, 2025
  • Price Analysis

Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?

Bitcoin price has continued to draw attention as the market reacts to fresh catalysts. At…

September 5, 2025