Bitcoin Threatens To Retreat To $60,000

After a spectacular ascent to record highs, Bitcoin (BTC) is facing a reality check. The past week has seen a dramatic price correction, leaving investors wondering if this is a temporary setback or a sign of a more bearish future.

The world’s most popular cryptocurrency reached an intraday low of $64,620 on March 17th, a significant drop from its recent peak above $73,000. This pullback has triggered a wave of pessimism, with analysts pointing to declining profitability and a drop in daily active addresses on the network.

Bitcoin down in the last week. Source: Coingecko

A Bearish Shadow Looms

According to analysts, investor sentiment has been hurt by a series of descending peaks and failed upturns, while selling pressure remains rampant as we approach the “weekly candle close.” This sentiment is echoed by data from IntoTheBlock, which shows a sharp decline in the number of addresses “In the Money,” signifying a decrease in overall profitability within the Bitcoin network.

Source: IntoTheBlock

Finding Support: A Beacon of Hope?

However, not everyone is hitting the panic button. Technical analysis suggests a potential support zone for buyers between $60,000 and $67,000. Popular trader Skew highlights this area as a possible turning point, while also acknowledging significant spot selling from major exchanges like Coinbase and Binance.

$BTC Spot Market Data Thread, in partnership @_WOO_X $BTC Binance Spot
Weekend spot buyer here

Spot Supply ($72K – $74K)
Spot Demand ($60K)

Interestingly last bounce which was sold into also resulted in a stack of limit bids being quoted lower.
~ Keep an eye on those bids… pic.twitter.com/3PKHyddNlv

— Skew Δ (@52kskew) March 17, 2024

Bulls On The Horizon: Are The Giants Awakening?

While the immediate future appears uncertain, some analysts remain bullish on Bitcoin’s long-term prospects. They view the current correction as a natural and healthy part of any bull run, pointing to historical data where similar pullbacks paved the way for further growth.

Related Reading: Bitcoin Crashes: Dip To $65,000 Triggers Over $400 Million Liquidation Avalanche

Adding fuel to the fire of optimism is the potential return of institutional capital. The recent resumption of buying from US Bitcoin ETFs and the prospect of a significant influx of funds from hedge funds and investment advisors in the coming months are seen as potential catalysts for a rebound.

BTCUSD trading at $68,087 on the...