When writing this article, the value of Bitcoin has fallen to less than $70,000. It is anticipated that this week will be very variable, with the value most likely fluctuating between $65,000 and $65,000. In particular, BTC is currently trading at $68,277.90, up 4.94% over the previous day. After trading at above $72,000, Bitcoin has retraced to this margin, putting it back in the center of the stage.
Weekly price movements: early support followed by a decline
At almost $68,000, BTC’s value shows a decline of 3.10% during the last seven days. Since the values are fewer than $70,000, the graph’s lines are essentially red. The coins didn’t lose their momentum until after March 15, 2024. On March 16, 2024, BTC closed the market at a price near $66,000. Values during the past 48 hours have been close to $65,000. The support threshold remains set at $60,000.
According to analysts, values could potentially fall much lower if they go below the mentioned threshold. This kind of influence is probably the result of two causes. Initially, investors want to lock in profits before a decline in the market. Secondly, Grayscale continues to sell its units on the side to websites like Binance and Coinbase.
The market has maintained the overall upward trend because traders have high expectations for future price moves. The steady stream of money flowing into the Bitcoin ETF is another factor boosting confidence.
The next wave of bullishness is anticipated to be sparked by the impending halving, which will solidify the forecast that BTC will close the year above $100,000. Several observers claim that real money has not yet entered the Bitcoin ecosystem. A higher allocation might cause a spike in liquidity, which would raise the price.
In addition, a lot of analysts have noted that Grayscale might sell more than usual and that the inflation story is doing its bit. It is reported that Grayscale transferred about $400 million worth of Bitcoin to Coinbase, its custodian. The historical background demonstrates that Grayscale has even transferred BTC tokens valued at $2.2 billion in a few short days.
Bullish versus bearish sentiment: Forecasts from analysts and market anxiety
Crypto researcher Willy Woo predicts that severe drops in Bitcoin in March will lead to later SOPR peaks. March may be the month of consolidation if Bitcoin were to remain near its previous ATH. Willy further emphasized that buy-the-dip opportunities will arise at SOPR (spent output profit ratio) peaks, allowing traders to join the trend or amass tokens. They predict that Bitcoin will remain below $80,000 for the entire month of March, or at the very least, close to it.
There have been two earlier occasions where buying on the dip was possible because of BTC. These occurred in 2020’s fourth quarter and 2017’s first quarter. The respective dip opportunities were -17% and -31%.
The previous week’s price declines may have been caused by profit-taking, unpredictability in the market, and other elements including concerns about inflation, which may have reduced the likelihood that the Fed will reduce rates anytime soon. Additionally, the cryptocurrency market is more likely to hold meme coins such as Book of Meme, or BOME.
In the future, what can we expect from Bitcoin?
Halving is the next in line, with a planned date of April 2024. This would increase the price and decrease the supply. Plus, depending on volatility, Bitcoin might stay at $69,000 or reach its highest value of $80,000.
In summary
Over the past week, Bitcoin has seen volatility, and the waves will likely continue to batter the token for some time. The option to buy the dip is not exactly packaged with a catchphrase. Therefore, depending on one’s risk assessment, investing in the cryptocurrency market is advised.
