Bitcoin: 5 Key Points to Know This Week as GBTC Outflows Satisfy “Extraordinary Demand”

Bitcoin (BTC) is entering the last week of March with a chance to reach new all-time highs. The market is showing renewed energy and consolidation, and investors are anticipating a return to price discovery. Last week, Bitcoin experienced significant losses, but this week has seen a different landscape. There is a CME gap to the downside, and mining difficulty is set to increase, signaling bullish signals. In addition, macroeconomic triggers could inject volatility into risk assets. BTC price is returning to a crunch resistance zone, with a slow grind higher leading to a weekly close just under $67,200. A CME gap to the downside is being closely watched by analysts. Some traders have reservations about the strength of the Bitcoin bull market, while others see positive signs in indicators such as the RSI and MACD. Bitcoin ETFs are also being closely observed, as they experienced several days of net negative flows last week. However, commentators are hoping for a return to positive flows. The Personal Consumption Expenditures (PCE) Index in the US is expected to have an impact on markets, and Fed Chair Jerome Powell’s upcoming speech could reinforce expectations of interest rate cuts. Despite recent price volatility, Bitcoin network fundamentals are strong, with mining difficulty and hash rate holding at or near all-time highs. The upcoming block subsidy halving in April is also being closely monitored by miners. Mainstream interest in Bitcoin appears to be waning, as Google search intensity for Bitcoin is decreasing. However, the power of the Bitcoin bull market should not be underestimated.