Bitcoin falls below $68k but long-term bond buying accelerates.
Bitcoin (BTC) fell to $67,000 during European trading on Friday, despite a long-term buy. Exchange rates rose to 16-month highs, suggesting that “immediate selling pressure” has eased, according to a new analysis.
Main Receptors:
Bitcoin withdrawals from the currency will increase, decreasing BTC available for sale.
Long-term holders accelerate the accumulation, adding 155,450 BTC in the last 30 days.
Bitcoin analysts see $65,000–$66,000 as a potential support zone for a bounce.
As long-term buying accelerates, the supply of bitcoins shrinks
CryptoQuant exchange flow data highlights “renewed signs of supply congestion” as large Bitcoin outflows continue on major exchanges.
The chart below shows that investors withdrew nearly $1.6 billion in BTC from Bitfinex on March 16, as shown by the orange bar in the chart below.
Related: As TradFi Returns, Bitcoin Floors ‘Near $70K' War, Will Inflation Shatter Their Faith?
Since then, the trend has spread to other major exchanges, with $678 million from OKX on Sunday, $728 million from Kraken on Monday, and another $400 million in BTC left by Binance on Wednesday.
“This pattern indicates that the recent wave of withdrawals is not isolated to one platform,” CryptoQuant analyst Amr Taha said in a recent Quick analysis.
The figures support recent data showing that Bitcoin whales and sharks have been piling up over the past two months, a pattern that could eventually trigger an exit from the range.
Long-term holders (LTHs), investors who have held Bitcoin for more than 155 days, have stepped up buying, reflecting a level of hoarding.
LTH's net position change has been positive since March 5, as 155,450 BTC were bought in the last 30 days.
In other words, holders are buying more on dips, including the recent one below $68,000.
As LTHs widen their positions as bitcoin leaves exchanges, it “usually shows a reduction in immediate selling pressure and stronger confidence among investors with longer horizons,” Amr Taha said.
If this trend continues, the market could enter another phase where sell-side equity strengthens and strong LTH demand “creates a more supportive backdrop for prices,” the analyst added.
Bitcoin price to revisit $65,000 before the drop
According to Cointelegraph, $70,000 remains key for Bitcoin bulls and a loss of this level could lead to the next leg down.
At the time of writing, the BTC/USD pair was trading below $67,000, below the 50-day simple moving average (SMA) and the 200-week moving average (EMA).
Bears will try to push the price towards the $65,000-$63,300 demand zone, focusing more deeply on the range below $60,000, reached on February 6.
“After that rejection at $75K, it's very clear that there isn't enough strength for the markets to go higher,” MN Capital founder Michael Van de Pop said in a recent X post.
The accompanying chart suggested that the price would need to print a higher low in the $65,000 to $66,000 range, otherwise “we'll start to see momentum down,” Van de Pop added.
I'll be looking at long ones in the sub $60k range.
Glassnode's Liquidity Heatmap highlighted “strong” wall bids around $65,000, suggesting that BTC price may test this area before plunging.
According to Cointelegraph, a break and close below the $68,000 trendline could push Bitcoin's price down to $60,000, followed by consolidation.
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