Bitcoin (BTC) attempted to retest the$68,000 support on April 1 as the Wall Street open sparked weakness.
Bitcoin traders eye support levels amid early weakness
Data from Cointelegraph Markets Pro and TradingView tracked a problematic start to Q2, with BTC price losses passing 4.5%.
The return of institutional flows appeared unable to induce further upside — despite a lack of outflows from the Grayscale Bitcoin Trust (GBTC).
Commenting on the situation, popular trader Daan Crypto Trades suggested that the Easter holiday period may be a factor.
“Grayscale didn’t send out anything except some $ETH and other coins which weren’t any noteworthy amounts,” he told followers on X alongside data from crypto intelligence firm Arkham.
“Likely to do with the markets being closed around easter. Expecting the usual in/outflows again starting tomorrow.”
Daan Crypto Trades added that overall, GBTC outflows “seem to be slowing down.” $104 million left on the final trading day of Q1, considerably less than the record $642 million seen on March 18.
Now at its lowest levels since March 25, meanwhile, BTC/USD gave traders pause for thought. For Daan Crypto Trades, a dip below the 200-period moving average on four-hour timeframes, currently at $67,330, was not out of the question.
“Price testing 4H/1D trend here, still more on the defensive side till price is back above $70K,” fellow trader Skew added in part of his own X analysis.
In its latest “New York Color” update sent to Telegram channel subscribers, meanwhile, trading firm QCP Capital warned of increased “downward pressure” across crypto spot markets.
“In the last 24 hours, we’ve seen significant interest to sell calls and buy puts in both BTC and ETH,” it reported.
Analysis: "Smart money" aims to buy the dip at $62,000
Examining exchange order book liquidity on the largest global trading platform, Binance, trading resource Material Indicators painted a grim picture for BTC price action between now and the upcoming block subsidy halving.
Related: Highest monthly close ever — 5 things to know in Bitcoin this week
In a series of X posts, the firm, along with co-founder Keith Alan, flagged increasing bid liquidity further toward $60,000.
“Despite the history making 7th consecutive green monthly close for BTC, there is no ‘up only’ to the Halving,” part of one post read.
“Smart Money has bids laddered down to $62k.”
Alan continued that Bitcoin may be posing a problem for institutional buyers thanks to price acting within relatively uncharted territory.
Once the halving has come and gone, he nonetheless noted, belief in new all-time highs is firmly in place.
“At least one entity believes that’s a high probability as they have laddered over $150M in BTC bids all the way down to $62k after price dipped below $69k briefly,” he explained.
“Among other things, this illustrates that even the institutional guys aren’t sure where price is going to land, so they are happy to DCA into positions from this range, because there is high conviction that there will be a series of new ATHs after the halving.”
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.
