Bitcoin (BTC) experienced significant volatility at the opening of Wall Street on March 27, with analysts suggesting that short liquidations were overdue.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin experienced a surge in price, reaching its highest level in nearly two weeks at $71,754 on Bitstamp. However, it quickly corrected and dropped $1,300 in just a few minutes. Bulls attempted to support the key $69,000 zone.
BTC/USD 1-minute chart. Source: TradingView
Despite the volatility, the latest data on flows for United States spot Bitcoin exchange-traded funds (ETFs) showed positive signs. The Grayscale Bitcoin Trust (GBTC) saw a modest outflow of 1,300 BTC ($91 million) at the start of Wall Street trading. This data was shared by popular trader Daan Crypto Trades on X (formerly Twitter).
Source: Daan Crypto Trades
Daan Crypto Trades also noted that there was a large wall of BTC sell orders at the recent local highs, contributing to the high volatility.
Market observers are now focusing on liquidating short BTC positions. Data from on-chain monitoring resource CoinGlass showed an increase in bids around $69,000, which could act as a safety net if the market reverses.
BTC liquidation heatmap (screenshot). Source: CoinGlass
Trader CrypNuevo also commented on the situation, hoping for an attack on the short positions near the all-time highs of $74,000. He reasoned that the closer proximity of these positions to the current price made them more likely targets for liquidation.
BTC liquidation heatmap for Binance. Source: CrypNuevo/X
The $69,000 level remains a key point on the BTC price map. Popular trader Crypto Ed encouraged calm as the price approached $68,500, suggesting that it could provide a suitable entry point for long positions and would not necessarily indicate a major corrective move. He speculated that BTC/USD could potentially reach $73,000 before any further correction occurs.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.