BTC price rises by 70 thousand dollars — 5 things to know in Bitcoin this week
Bitcoin (BTC) The new week begins with a wobble and new all-time highs as BTC price volatility remains firmly under control.
The largest cryptocurrency has managed to close to a recent weekly high, but bulls will face strong resistance as they move higher.
As the price rally rages on, Bitcoin is caught in a familiar bullish pattern — selling pressure at key psychological price levels combined with persistent bidding in exchange-traded funds (ETFs).
Which one will come out on top this week?
Few are prepared for the magnitude of impact that comes from buying ETFs now. Even long-term bulls will re-evaluate where they think BTC/USD could be in the coming years, $1 million is seen as conservative in the long term.
Others, on the other hand, warn that an accelerating bull run could trigger higher BTC prices than expected.
Closer to the present, US macro data is set to release on what the Federal Reserve's decision on interest rates should be.
With Bitcoin at a crossroads, miners are wasting no time in locking in profits before the April block subsidy is halved.
Cointelegraph takes an in-depth look at these topics and more to come in a weekly detailed report on BTC price volatility.
Record weekly highs before BTC price discovery
Bitcoin had classic volatility at its weekly close of March 10 – easily the highest in history.
At $69,000, the peak could not be sustained, as a sharp decline took BTC/USD to $67,120 minutes later, data from Cointelegraph Markets Pro and TradingView confirmed.
The relief began, echoing earlier taps around $69,000 from last week – which took Bitcoin to new all-time highs during the March 11 Asian trading session.
In response to X (formerly Twitter), popular trader Skew said: “Price is still falling around $70K.
The skew highlighted the area between $63,500 and $65,500 as the key to maintain the current advance if the key moves into the next one.
“Starting to see significant bids above $60k, it will probably throw out wait bids,” he said, referring to Binance's place order feature on the largest global exchange.
“Overall, compact price reductions lead to negligible buyer shortages.”
Adding to the picture, Martun, a contributor to on-chain analytics platform CryptoQuant, noted that the on-chain activity of coins has been going on for decades.
He previously cited the output age bands metric, which classifies coins involved in transactions based on how long they have been on the network.
“There was a 2,877 BTC move between 7 and 10 years before the drop,” he wrote about the weekly close.
The CPI week is looming and there are no Fed rate cut bets
Another “classic” week in terms of US macroeconomic data is set for February with the publication of the Consumer Price Index (CPI).
In the year Due to March 12, CPI will trade short-term in risk asset volatility, while Bitcoin will react differently.
The current inflation and federal policy narratives are uncorrelated. Markets are eager to see interest rates rise, and federal officials, including Chairman Jerome Powell last week, are trying to temper their expectations.
The nature of the CPI figures and other data points will be a key reference point, with the next Fed meeting more than a week away.
“This week's fresh CPI inflation report sets the stage for the March Fed meeting,” business resource Kobeisi wrote in part in a letter in the X weekly diary.
“Big week ahead of us.”
According to the latest estimates from the CME Group's FedWatch Tool, no one sees a dramatic rate cut at this month's meeting, with only a 3% chance at the time of writing.
Other key data coming this week include the producer price index, or PPI, and unemployment claims on March 13 and 15, respectively.
ETF Bitcoin has seen widening buyer pressure.
Bitcoin market watchers are expecting one thing as the week begins: a resumption of buying spot ETFs.
Now the most successful ETF launch in history, the nine participants have led a BTC price rally that many see continuing.
While bookings are showing, ETFs are not buying the price path as demand is likely to wane, so optimism among institutions is now evident.
Last week, Cathy Wood, CEO of asset manager ARK Invest, said the company's 2023 goal of a $1 million BTC price is “moving forward.”
“No platform has approved Bitcoin yet, so all of this price action happened before they were approved, and we haven't even started,” she said, noting the absence of major U.S. wirehouses like Morgan Stanley and UBS.
As Cointelegraph further reports, industry experts are preparing for this to happen and the price impact that could follow.
In a March 9 note, crypto-native asset manager Bitwise listed “major warehouses,” “institutional advisors” and “large corporations” as the next to increase BTC exposure.
“Based on current trends, I think we'll see the first significant flows from these three groups in Q2 2024, and I think those flows will spread throughout the year as these investors become more comfortable with the new products.” Officer Matt Hougan wrote.
Pool Multiple is almost a year old when it comes to mushroom mining.
Bitcoin reached a new all-time high before the next halving – a unique event in its history.
This has surprised many, and miners seem no different. Although the upcoming halving exposes them to 50% less “new” BTC per block, miners have largely increased their sales.
The incident took place in Since the ETF's launch on January 11, outflows from mining wallets have been seen in 2024, CryptoQuant data shows.
Total daily revenue on March 7 was the second highest at $75.9 million, CryptoQuant contributor Julio Moreno said on X.
“Mining revenues have increased rapidly as Bitcoin prices have soared recently,” trading suite DecenTrader continued on the topic on March 11.
DecenTrader cites the pull multiple – the price of a coin's exit compared to its annual moving average – hitting some of the highest levels in six years. Multiple functions such as macro upper and lower part instruction.
“This resulted in a historically high sided pool multiple score of +2.4 – although not as high as the previous cycle,” he explained.
Hodler resists selling
In the midst of foreign price gains, seasoned Bitcoin hoarders keep their hard-earned coins in their wallets.
RELATED: Bitcoin Accumulation Level Ends As ETFs Fire New $100K BTC Price Target
On-chain data shows that Glassnode long-term holders (LTHs) have yet to see an unprecedented volume of transactions in 2021, the year BTC/USD reaches $69,000 for the first time.
The biggest high of around 72,000 BTC, on February 24, has yet to hit a one-day high of $70,000 and above.
According to Crypto Educational Resource On-Chain College, meanwhile, net unrealized profit/loss (NUPL) for LTHs, while strong, has not yet reached a high strategic level.
On March 11th, he wrote to X followers: “Bitcoin's most bullish holders still hold unexpected levels of profit that occur before the peak of the cycle.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
