Bitcoin Wobbles: $60k Support Tested, Grayscale Buys Continue

Bitcoin has retraced back to a value of less than $70,000 when articulating this piece. The current week is expected to be full of fluctuations, with the value likely to dance around $65,000. Specifically speaking, BTC is listed at $68,277.90, with a surge of 4.94% in the last 24 hours. Bitcoin is back at the center of the stage because it has retraced to this margin after exchanging hands at more than $72,000.

Early support, then a slide: Price movements throughout the week

BTC’s value of around $68,000 reflects a slip of 3.10% in the last 7 days. The graph’s lines are pretty much red, as the numbers are less than $70,000. Only after March 15, 2024, the coins lost their momentum. BTC closed the market on March 16, 2024, closer to $66,000. Values have been near $65,000 in the last 48 hours. The support level continues to be marked at $60,000.

Analysts believe that dropping below the said mark could potentially open the doors for values to plummet further. Two factors are likely to cause this kind of impact. First, investors are looking to book profits before the market goes downward. Second, Grayscale is still side-selling its units to platforms like Coinbase and Binance.

The market has been able to preserve the broader uptrend as traders are bullish about future movements. Also instilling a sense of confidence is the constant inflow into the Bitcoin ETF.

The halving is just around the corner, and it is expected to spark the next round of bullishness, cementing the prediction that BTC will conclude the year at $100,000. According to several analysts, real money has yet to enter the Bitcoin ecosystem. A stronger allocation could result in a surge of liquidity, boosting the price.

Many analysts have also said that the inflation narrative is playing its part, adding that Grayscale could sell more than usual. Grayscale is estimated to have moved almost $400 million worth of BTC to its custodian, Coinbase. The historical context highlights that Grayscale has even moved $2.2 billion worth of BTC tokens in a matter of days.

Bullish vs. bearish sentiment: Analyst predictions and market jitters

Willy Woo, a crypto analyst, believes that March will see some harsh dips in Bitcoin to trigger SOPR peaks later. March could be about consolidation for Bitcoin to stay around its last ATH. Willy also highlighted that SOPR (spent output profit ratio) peaks will bring buy-the-dip opportunities, enabling traders to get on board or accumulate tokens. They are confident that BTC will stay below $80,000 throughout March or at least end the current month below $80,000.

There are two previous instances when BTC brought buy-the-dip opportunities. These happened in the fourth quarter of 2020 and the first quarter of 2017. The dip opportunity was -17% and -31%, respectively.

Price drops in the previous week could have been because of profit-taking, market uncertainty, and other factors like inflation fears, potentially lowering the chances for the Fed to cut rates any time soon. Also, the crypto market is more inclined to own meme coins like BOME, Book of Meme.

Looking ahead: What is next for Bitcoin?

Next lies Halving, tentatively scheduled to happen in April 2024. That would lower the supply and boost the price. Plus, Bitcoin may stick around $69,000 or rise to the maximum value of $80,000, subject to volatility.

Conclusion

Bitcoin has experienced volatility in the past week, and the waves continue hammering the token for a while. The buy-the-dip opportunity does not precisely come with a tagline. Hence, diverting funds to the crypto market is recommended based on one’s risk assessment.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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