Bitcoin (BTC) remained at higher levels on March 21 after a rapid rebound resulted in a 12% increase in BTC price for the bulls.
BTC price surged higher due to the outlook of the Federal Open Market Committee (FOMC). Data from Cointelegraph Markets Pro and TradingView showed that Bitcoin consolidated in a narrow range following a dramatic comeback the previous day.
Bitcoin reacted positively to comments made by the United States Federal Reserve, as it decided to maintain interest rates at current levels. After the FOMC meeting, Fed Chair Jerome Powell suggested that it would be “appropriate” to implement rate cuts later in the year. An accompanying press release reiterated that the committee does not expect to reduce the target range until there is greater confidence in inflation moving towards 2 percent.
BTC/USD managed to avoid another retest of the $60,000 support level and instead rose to $68,000, fully recovering its previous losses.
Popular trader Jelle stated in his latest analysis that the objective for the day was to hold above $65,300.
Shorters suffered losses during this upward movement, with total short BTC liquidations on March 20 amounting to $70 million, according to data from monitoring resource CoinGlass.
Meanwhile, new outflows from US spot Bitcoin exchange-traded funds (ETFs) did not have a significant impact on sentiment. Investment firm Farside estimated that $261 million left the new ETF products on March 20, mainly caused by $386 million in outflows from the Grayscale Bitcoin Trust (GBTC). The other ETFs saw inflows, but these were relatively small compared to previous daily revenues.
Market observers responded optimistically, with popular commentator Dyme suggesting that Bitcoin’s lack of reaction to the third consecutive day of outflows showed a newfound resilience to ETF forces. Samson Mow, CEO of crypto adoption firm Jan3, argued that even GBTC would eventually see net inflows in the future.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.