You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Big Bitcoin Price Swings Wipeout Traders as ETF Buyers Battle Profit-taking Sellers – Where is BTC Headed Next?

Friday witnessed significant fluctuations in the price of Bitcoin (BTC), leaving many traders facing losses as both bullish and bearish factions grappled amidst a struggle between US spot Bitcoin ETF buyers and profit-seeking sellers.

The day commenced with BTC trading above $71,000, only to undergo a sharp decline during the Asian trading session, plunging to as low as $65,500.

However, amidst the volatility, the Bitcoin price swiftly rebounded to $70,500 during US trading hours, although it currently hovers around $68,000. Notably, leveraged futures positions totaling $200 million were liquidated, according to coinglass.com, marking a significant setback for traders.

This day stands out as particularly punishing for bullish investors since March 4, when long positions worth $244 million were wiped out.

Despite reaching fresh record highs near $74,000 just a day prior, Bitcoin’s bullish momentum has waned, with profit-taking dominating the market despite sustained interest in spot Bitcoin ETFs.

Profits At Absurd Levels, On-Chain Analysis Reveals

According to CryptoCon, the 30-day moving average of the Realized Profit/Loss Ratio, a widely tracked on-chain metric, has reached “absurd” levels, indicating that investors who have amassed significant profits may be growing restless to sell. However, CryptoCon emphasizes that this does not necessarily imply that the market is nearing a peak.

Despite this observation, it’s worth noting that at the current price levels around $68,000, Bitcoin has surged over 60% year-to-date. The rally has been primarily fueled by substantial inflows into spot Bitcoin ETFs, which have been gaining momentum.

JP Morgan’s research note highlights that weekly inflows into these ETFs were the largest recorded since their launch in January. Despite a 7.5% retracement from recent highs due to profit-taking, confidence in Bitcoin’s bullish trajectory remains high.

It’s noteworthy that Bitcoin achieved a new all-time high before its scheduled April halving event, rather than after, further bolstering confidence in its long-term potential.

Where to Next for the Bitcoin Price?

During previous Bitcoin bull markets, it was common for the price to experience a reversal of around 30% from its local highs. For instance, in January, Bitcoin saw a dip from its yearly high of approximately $49,000 to as low as $38,500. This historical pattern implies that the recent pullback in Bitcoin’s price may have further room to decline. A retest of $50,000 shouldn’t be ruled out based on these historical comparisons.

However, the emergence of ETFs has potentially altered the dynamics of the market. Institutional investors, entering the Bitcoin arena for the first time, are likely less sensitive to price fluctuations compared to earlier cohorts of Bitcoin investors. Moreover, they may adopt a “buy-the-dip” mentality, which could mitigate sharp declines in BTC price.

Given these factors, any downward movements in the BTC price might struggle to extend beyond 10-15%. This suggests that $60,000 could serve as a near-term price floor.

While $74,000 might represent the pre-halving high, it could pave the way for a breakout to new record levels later in the year, potentially challenging the $100,000 mark.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

Coinbase Board Member Kathryn Haun to Step Down – What’s Going On?
21.04.2024By
Kenyan Volcano Turns on Lights in Rural Homes with Jack Dorsey’s Bitcoin Mining Support
21.04.2024By
Telegram to Introduce USDT Payments With Telegram Wallet and the Open Network
20.04.2024By

Latest news

Coinbase Board Member Kathryn Haun to Step Down – What’s Going On?
21.04.2024
Kenyan Volcano Turns on Lights in Rural Homes with Jack Dorsey’s Bitcoin Mining Support
21.04.2024
Telegram to Introduce USDT Payments With Telegram Wallet and the Open Network
20.04.2024
HashKey Exchange Suspends Binance Deposits and Withdrawals Citing Policy Adjustments
20.04.2024
Mango Markets Hacker Found Guilty, Faces 20 Years in Prison: Reuters
20.04.2024
Japan’s SBI Group Plans to Issue NFTs Built on XRP Ledger for World Expo 2025 in Osaka
20.04.2024
Ethereum Sees $365 Million in Revenue in Q1, Up by 155% YoY
20.04.2024
Anti-Bitcoin SEC Commissioner Caroline Crenshaw May Soon Lose Her Seat
20.04.2024
Is The Bull Market Over Before The Bitcoin Halving? Glassnode Report
20.04.2024
Escaped South Korean Criminal Suspect ‘Used Weapon to Rob OTC Crypto Buyer’
18.04.2024