Bitcoin (BTC) experienced a period of consolidation at the Wall Street open on March 26, with the price action giving mixed signals to bulls. The BTC/USD 1-hour chart showed a dip of up to 3.2%, bringing the cryptocurrency closer to its all-time high of $69,000. The market dynamics indicated arguments for both bullish momentum and a continued correction.
Preliminary data from crypto intelligence firm Arkham showed outflows from the Grayscale Bitcoin Trust (GBTC) at $120 million, which is lower than the average for the past week. On the other hand, there was a lack of bid liquidity below the spot price, suggesting a potential return to lower support levels. Keith Alan, co-founder of trading resource Material Indicators, highlighted the downside path of least resistance in terms of liquidity.
Alan emphasized the significance of the upcoming weekly and monthly candle closes. The previous week closed at $68.9k, while the previous month closed at $61.1k. These levels could be challenged relative to the candle close/open on Sunday. The price action of BTC was compared to its breakout in 2020 when flipping $20,000 allowed for new all-time highs. Flipping $69,000 to definitive support would provide the foundation for price discovery and keep BTC/USD within historical norms.
Popular trader and analyst Rekt Capital focused on BTC price patterns around block subsidy halving events. With the next halving due in mid-April, Bitcoin should be in the pre-halving retracement phase, followed by a post-halving reaccumulation phase. Rekt Capital stated that the pre-halving rally had occurred and a pre-halving retrace of 18% could be over, leading to a consolidation phase.
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.