Bitcoin (BTC) swapped gains for consolidation at the March 26 Wall Street open as BTC price action gave bulls “mixed signals.”
Bitcoin downside "path of least resistance"
Data from Cointelegraph Markets Pro and TradingView showed upside fading on the day, with BTC/USD dipping up to 3.2%.
Now circling the key $69,000 all-time high from 2021, Bitcoin appeared uncertain where to head next after snap gains over the prior 24 hours.
Market dynamics revealed arguments for both fresh bullish momentum and a continued correction.
Preliminary data from crypto intelligence firm Arkham put outflows from the Grayscale Bitcoin Trust (GBTC) at just $120 million — considerably less than average for the past week.
“Yesterday's ETF net flows saw a minor net inflow at +$15.6M. $GBTC saw a net outflow of -$350.1M,” popular trader Daan Crypto Trades wrote in part of commentary while uploading the numbers to X (formerly Twitter).
“Regardless, price moved up swiftly during all this.”
At the same time, a lack of bid liquidity below spot price kept the odds of a return to lower support levels in play.
“What's clear, is that in terms of liquidity, the path of least resistance is down. That's not speculation,” Keith Alan, co-founder of trading resource Material Indicators, wrote in part of his latest BTC price analysis on X.
An accompanying video showed the nearest patch of significant bids still centred around $60,000 on the Binance BTC/USDT order book.
Going forward, Alan said that the upcoming weekly and monthly candle closes would be significant.
“With last week's close at $68.9k and last month's close at $61.1k we could (and should) see one or both of those levels challenged relative to the candle close/open on Sunday,” he added.
BTC price seen copying 2020 breakout
Continuing, popular trader and analyst Rekt Capital stressed the importance of flipping $69,000 to definitive support next.
Related: GBTC outflows meet ‘incredible demand’ ― 5 things to know in Bitcoin this week
This, he explained in his latest YouTube video, would provide the foundation for price discovery, keeping BTC/USD within historical norms.
Flipping $20,000 over a two-week period in 2020, for instance, was what allowed Bitcoin to explore new all-time highs on and off for the subsequent eleven months.
As before, Rekt Capital focused his assessment on BTC price patterns around block subsidy halving events.
With the next due in mid-April, Bitcoin should be in the midst of its “pre-halving retracement” phase, with a “post-halving reaccumulation phase” to follow.
“First of all, we’ve satisfied the ‘pre-halving rally’ — we’ve seen a fantastic take us to new all-time highs. This pre-halving retrace of 18% has occurred, could be over, but of course, this pre-halving retrace exists to enable a sideways range — a reaccumulation structure that sees us just consolidate for a long time,” he said.
“Could it be the same case going forward right now? That’s something that I’m watching for.”
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.
