Bitcoin has been on a remarkable run in recent weeks, setting a new all-time high of $73,835.57 on March 13th. However, the digital asset has since experienced a slight pullback, with its price decreasing by 4.97% over the past seven days, currently trading at $67,788.82 as of writing.
This surge in Bitcoin’s value has been fueled by a confluence of factors, including increasing institutional adoption, growing mainstream acceptance and the upcoming halving event scheduled for late April 2024. The halving, which occurs roughly every four years, is a pre-programmed event that cuts the reward for mining new Bitcoin blocks in half, effectively reducing the supply of new coins entering the market.
Despite the recent dip, Bitcoin’s market capitalization remains staggering, currently sitting at $1.33 Trillion. The 24-hour trading volume for Bitcoin stands at an impressive $41.36 billion as of writing, reflecting the heightened interest and activity surrounding the digital asset.
BTC Weekly Technical Analysis
From a technical view, the weekly candlestick chart for Bitcoin closed bearish last week, potentially signaling a correction or retracement in the near term. Historical data suggests that Bitcoin often experiences a pullback before a halving event.
Resistance levels are currently at the recent all-time high of $73,835.57. The weekly Relative Strength Index (RSI) stands at an elevated 86.10, while the Moving Average Convergence Divergence (MACD) indicator reads 2455, both suggesting potentially overbought conditions and that we could witness a retracement in the near future. Having this in mind, the immediate support levels to watch are the previous week’s low at around $64,596 zone and the prior week’s support zone at $59,298.
As the highly anticipated Bitcoin halving draws closer, market participants closely monitor the price action and technical indicators for potential buying opportunities or signs of a more significant correction.
BTC Daily Technical Analysis
Bitcoin’s daily chart shows bearish momentum building up, with the cryptocurrency closing lower for three consecutive days after hitting its all-time high. However, yesterday’s candlestick closed bullish as Bitcoin found support at the $64,596 level.
If this key support level is broken, traders will closely watch for a potential downward move toward the next significant support at the $59,298 level or at the ascending trendline immediately below the zone.
Today’s candlestick opened at $68,354.29 and has since traded in a range between $68,933.71 and $66,754.64. The daily Relative Strength Index (RSI) currently sits at 58.57, indicating neutral market conditions. The Moving Average Convergence Divergence (MACD) is in negative territory at -770.30, suggesting potential selling pressure.
Analysts Bullish Amid $1.4B Coinbase Outflow
Coinbase, a leading cryptocurrency exchange, witnessed a staggering $1.4 billion withdrawal on Sunday, marking the second-largest outflow this year. This coincided with a dip in Bitcoin’s price, leading to an unprecedented surge in demand from investors.
A whopping $1.4 billion withdrawn from Coinbase – the second largest this year!
Sunday’s Bitcoin dip saw unprecedented demand.
BlackRock went on a BTC buying spree last week. It will be interesting to monitor their actions this week. pic.twitter.com/pvRcmeg58c— Kyledoops (@kyledoops) March 18, 2024
Notably, asset management giant BlackRock took advantage of the dip and went on a Bitcoin buying spree last week. The actions of institutional players like BlackRock will be closely watched this week as the crypto market navigates through the volatility, providing insights into the evolving sentiment and strategies of major investors.
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