Bitcoin (BTC) surpassed $66,000 on April 3 as market participants disregarded the Silk Road BTC sales.
BTC/USD 1-hour chart. Source: TradingView
BTC price recovers lost ground in April
After reaching lows of nearly $64,500 after the daily close, data from Cointelegraph Markets Pro and TradingView showed a modest recovery in BTC prices.
The recovery came after news that the United States government had sold more than 30,000 BTC ($2.1 billion) that it had confiscated from the defunct Silk Road marketplace. The government sold 2,000 BTC ($133 million) on-chain.
Despite concerns in the market, traders quickly called for calm. Michaël van de Poppe, founder and CEO of trading firm MNTrading, wrote in response, “In every market, we have bullish and bearish narratives.” He added that he was “happy” that more BTC supply was now available. Others emphasized the insignificance of the amount sold.
Source: Thomas Fahrer
On the buying side, the latest data from sources, including UK-based investment firm Farside, showed that inflows to US spot Bitcoin exchange-traded funds (ETFs) totaled just over $40 million on April 2. Combined with the $183 million seen on March 28, the total easily surpassed the government sell-off.
Bitcoin ETF flows (screenshot). Source: Farside
Bitcoin “needs follow-through from buyers”
In his latest market update, popular trader Skew expressed hope for continued momentum from spot buyers. He told his followers on X that BTC/USD on four-hour timeframes had a “nice sweep of the lows & good buyback reaction” and that it now needed follow-through from buyers.
Fellow trader Jelle was even more optimistic, stating that Bitcoin bulls had already overcome the most significant long-term resistance hurdles.
Source: Jelle
Van de Poppe echoed this sentiment, saying, “Corrections are normal; they do happen. You’ll see them happening in every market circumstance, independent of whatever narrative,” in a statement the day before.
This article is not providing investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making a decision.