- The massive profit taking right after the climb of Bitcoin (BTC) to a new all-time high (ATH) is not just a disappointment to the digital coin’s ecosystem but to the overall cryptocurrency community because it dragged altcoin prices along with it.
- If there’s any consolation to this though, it just unlocked a new price discovery for the asset.
- The dip also paved the way for investors to stack up their supply before the anticipated halving.
Investors Undeterred by the Dip
Based on its price movements this month, especially during its extreme fluctuation, Bitcoin found strong support above $60,000. The crypto asset also defied expectations when it logged a new record peak of $69,170.63 over 40 days prior to the halving in its ecosystem.
Last month, some experts thought the halving event was already priced in while BTC was moving along the $50,000 and $52,000 range. But then again, the digital asset suddenly found a sustained rally by the end of February on the way to its ATH on March 5.
Right now, BTC appears to be in a consolidation phase and the dip merely provided an opportunity for investors to stack up more of its supply. With that, it may be primed for another rally, which could culminate in a new historical peak.
Alex Thorn, head of research at Galaxy Research, noted that the present trajectory of Bitcoin coincides with the pattern it displayed back in December 2020. Almost a year away from its previous ATH at $68,789, the digital currency tapped its then-ATH at $20,000 twice before ranging and trading down by 11% and eventually breaching the territory to its 2021 top.
According to the analyst, Bitcoin is no stranger to dropping over 10% in the past bull cycle. Hence, the current behavior of its values may not be any different from that period.
John Bollinger, who is famous for his Bollinger Bands strategy, throws in a bit of caution in the present state of Bitcoin though. For him, the profit-taking was expected, but the one right after BTC’s ATH may have been “a bit much.” So, a failed rally at this point could be disastrous.
Bitcoin and Spot ETFs Now
Bitcoin didn’t show much action in the 24-hour chart but it remains at the $65,800 mark. Trading volume also slowed by nearly 40% as $60.95 billion worth of BTC moved between addresses.
Nevertheless, Bitcoin remains just below silver among the top assets in the world by market cap with the digital currency’s overall value of $1.29 trillion compared to the precious metal’s $1.37 trillion total valuation.
Meanwhile, the total net inflows of the top 10 spot Bitcoin exchange-traded funds (ETFs) in the US slumped by over 50% last Wednesday based on Farside Investors’ data. Nevertheless, they remained at a staggering amount of $332 million.
Leading the fray were the usual suspects, BlackRock ($218.7 million) and Fidelity ($205.7 million).