Bitcoin pushed above $66,000 at the March 4 Wall Street open despite “reaccelerating” outflows from its largest institutional investment vehicle.
Analysts eye Coinbase, BTC price rejection
Data from Cointelegraph Markets Pro and TradingView tracked Bitcoin (BTC) price upside building on an already strong day, hitting $66,483 on Bitstamp.
The market had made swift gains after the weekly close and was up 5% on the day at the time of writing.
With all-time highs less than $3,000 away, market observers predicted what could come next.
Venturefounder, a contributor to on-chain analytics firm CryptoQuant, suggested that Bitcoin might copy the events of a week prior when snap gains resulted in volatility after the United States’ largest exchange, Coinbase, crashed.
“Almost 1% funding rate and $31B of open interest. Get ready for $69k ETF buying squeeze up, Coinbase circuit breaker and flash dump in the same day again. Same roadmap as last Monday. Today is easy, the rest of the week will be hard,” he forecast on X.
Keith Alan, co-founder of trading resource Material Indicators, meanwhile preserved his more cautious tone, eyeing where Bitcoin could correct.
“We are seeing a classic Cup & Handle pattern forming on the macro chart from the ATH,” he wrote in his own X post, echoing Venturefounder’s sentiment from earlier.
“For this pattern to form, we would need to see at least some sort of pullback from the double top at the ATH. Technically it doesn’t matter if it’s a 3% or a 30% correction to form the pattern, as long as a handle forms.”
Alan nonetheless acknowledged that the market may ignore psychological pressure and continue beyond the record highs of $69,000.
“The caveat to this idea is that it is quite predictable, so the market might not give us the easy trade because it likes to punish as many over leveraged traders as possible,” he concluded.
“With that in mind, I'm looking at a break back into the macro channel as a potential point of rejection. That's currently in the $74k -$75k range, but if it takes a while to get there that line moves higher.”
BTC price ignores surging GBTC outflows
Notable on the day was the BTC price upside marching onward despite increasing outflows from the Grayscale Bitcoin Trust (GBTC).
Related: Why are BTC traders bearish above $64K? 5 things to know in Bitcoin this week
After declining markedly in the second half of February, March saw outflows reverse trend, with the tally for March 4 passing half a billion dollars.
“Outflows from Grayscale definitely re-accelerating again above $60K,” popular trader Daan Crypto Trades wrote in part of an X reaction, uploading GBTC data from crypto intelligence firm Arkham.
“Friday saw the first bigger net outflow day at -$139.6M mainly due to another big outflow from $GBTC at -$492.4M.”
GBTC remains the largest Bitcoin investment vehicle by BTC holdings despite these decreasing daily since mid-January.
Its holdings as of March 4, per data from monitoring resource CoinGlass, totaled 428,540 BTC ($28.9 billion).
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
