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Is a 37% Drop Next?

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Bitcoin Below True Market Mean

Bitcoin has entered a critical phase after its recent correction dragged the price toward the $70,000 level. Viewed through a macro lens, this move has exposed BTC to elevated downside risk. 

Several on-chain and technical indicators now align with a bearish outlook. However, large holders are actively accumulating, attempting to slow or reverse the developing trend.

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Bitcoin Loses A Major On-Chain Support

Bitcoin has dropped below the True Market Mean for the first time since September 2023. This metric reflects the aggregate cost basis of actively circulating supply. Trading below it signals weakening conviction among participants and marks a structural shift in market behavior.

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The loss of this anchor confirms deterioration that has been forming since late November. From a mid-term perspective, Bitcoin is now confined within a broader valuation corridor. Upside momentum has weakened, while downside pressure continues to build across multiple timeframes.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Bitcoin Below True Market Mean
Bitcoin Below True Market Mean. Source: Glassnode

On the downside, the Realized Price near $55,800 represents the historical level where long-term capital re-enters. On the upside, the True Market Mean of around $80,200 has flipped into resistance. This configuration limits recovery potential and increases the probability of further downside exploration.

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Bitcoin’s Macro Outlook Suggests 37% Crash

This structural weakness aligns with a macro bearish setup visible on the charts. Bitcoin is breaking down from a Head and Shoulders pattern that has been developing for months. This formation carries a projected downside of roughly 37%, targeting $51,511 if fully realized.

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The sharp 20% decline over the past week accelerated this breakdown. Rapid selling pressure confirmed the pattern’s neckline breach, intensifying bearish momentum. Such moves often lead to follow-through declines as trapped long positions unwind.

Bitcoin Prepares For 37% Crash
Bitcoin Prepares For 37% Crash. Source: TradingView

The next critical support below $70,000 sits at $68,072. Losing this level would validate the bearish projection. A decisive break would likely trigger additional liquidations, increasing volatility, and accelerating price movement toward lower structural levels.

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BTC Whales Jump In As Rescue

Despite mounting bearish signals, Bitcoin whales are actively attempting to prevent further downside. Addresses holding between 10,000 and 100,000 BTC have accumulated more than 50,000 BTC in just four days. At current prices, this accumulation exceeds $3.58 billion.

This behavior reflects strategic positioning rather than speculative trading. Large holders often accumulate during periods of fear, especially after sharp corrections. Bitcoin slipping below $75,000 appears to have created an attractive entry zone for long-term capital.

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Bitcoin Whale Accumulation
Bitcoin Whale Accumulation. Source: Santiment

If whale accumulation continues, it could absorb sell-side pressure and stabilize the price. Historically, such activity has preceded short-term rebounds. However, sustained impact depends on broader market sentiment and whether retail selling pressure subsides.

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BTC Price Is Close To Falling Below $70,000

Bitcoin price is trading near $69,500 at the time of writing after a 20% weekly decline. For now, BTC is yet to close a daily candle below $70,000 psychological support. This level has acted as a demand zone in previous corrections, making it critical for near-term stability.

From a short-term perspective, downside risks remain elevated. A breakdown below $68,442 would likely trigger accelerated selling. Under that scenario, Bitcoin could fall toward $65,360. Losing that support may expose BTC to a deeper slide toward $62,893.

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

Alternatively, whale accumulation could influence price direction. A successful defense of $70,000 may allow Bitcoin to rebound toward $75,000. Reclaiming that level as support would invalidate the immediate bearish thesis and reopen the path toward $80,000 if momentum improves.

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Crypto World

Fed fallout slows Crypto ETP inflows to $230 million

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Fed fallout slows Crypto ETP inflows to $230 million

Crypto investment products posted another week of net inflows, but the pace slowed as markets reacted to the latest US Federal Reserve meeting. 

Summary

  • Crypto ETPs extended their inflow streak to four weeks, though momentum dropped sharply after FOMC.
  • Bitcoin funds added $219.2 million, while Ether products saw $27.5 million in weekly outflows.
  • US spot Bitcoin ETFs stayed positive, but spot Ether ETFs recorded fresh weekly outflows.

Data from CoinShares showed that digital asset exchange-traded products brought in $230 million last week, extending the positive run to four straight weeks.

CoinShares reported that crypto ETPs recorded $230 million in net inflows during the week. That figure was well below the $1.06 billion posted a week earlier, showing that investor demand cooled as the week progressed.

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James Butterfill, head of research at CoinShares, linked the slowdown to a “hawkish pause” reading of the Federal Open Market Committee meeting. He said the weekly pattern supported that view, as products saw solid inflows early in the week before flows turned lower after the Fed decision.

Bitcoin (BTC) investment products drew the largest share of last week’s inflows. CoinShares data showed that Bitcoin funds added $219.2 million, accounting for nearly all of the week’s net gains across the digital asset product market.

Ether products moved in the opposite direction. They posted $27.5 million in outflows, ending a three-week inflow streak. The reversal came as investors reduced exposure after the Fed meeting and a broader change in risk appetite.

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In addition, Solana continued to stand out among altcoin-focused products. Solana ETPs brought in $17 million last week, marking the seventh straight week of inflows. That pushed the total for the streak to $136 million.

Other digital assets also posted gains. Chainlink products recorded $4.6 million in inflows, while Hyperliquid products added $4.5 million. These numbers showed that interest in selected altcoins remained in place even as broader market momentum slowed.

US spot Bitcoin ETFs stay positive for the week

US spot Bitcoin ETFs contributed a large share of Bitcoin-related inflows. SoSoValue data showed that these funds brought in $95.2 million last week, helping extend their winning run to four consecutive weeks.

The four-week stretch lifted total gains for US spot Bitcoin ETFs to $2.2 billion over that period. Even so, the funds still showed about $400 million in net outflows for the year. US spot Ether ETFs also lost momentum, recording about $60 million in weekly outflows and $599 million in outflows year to date.

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Crypto World

Strategy Buys 1,031 Bitcoin Using MSTR Stock Sales

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Strategy Buys 1,031 Bitcoin Using MSTR Stock Sales

Michael Saylor’s Strategy, the world’s largest public holder of Bitcoin (BTC), bought another 1,031 Bitcoin last week in a much smaller purchase than its previous two weekly buys, funding the acquisition with sales of Class A common stock.

Strategy acquired 1,031 Bitcoin for $76.6 million last week, according to an 8-K filing with the US Securities and Exchange Commission on Monday.

The purchases were made at an average price of $74,326 per coin, below the company’s overall average acquisition price of $75,694. Bitcoin averaged around $70,871 for the week of March 16-22, based on daily closing prices.

The new acquisitions bring Strategy’s holdings to 762,099 BTC, acquired for a total cost of roughly $57.69 billion, the company said.

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Source: SEC

Common stock funded the latest buy

Strategy’s relatively modest purchase follows larger Bitcoin acquisitions recently, including a 22,337 BTC buy reported last Monday and a 17,994 BTC buy a week earlier.

The 22,337 BTC ($1.6 billion) purchase ranks among Strategy’s largest on record and was largely funded through sales of its perpetual preferred equity, Stretch (STRC). The stock generated approximately $1.2 billion, accounting for about 75% of the total purchase.

Related: Strategy records biggest STRC issuance day with estimated 1,420 BTC buy

Unlike the prior week’s funding mix, the latest purchase appears to have been funded through sales of Strategy’s Class A common stock rather than preferred equity.

Source: SEC

Strategy has bought 41,362 Bitcoin for around $2.93 billion in March. With Bitcoin trading at $70,430 at the time of writing, the company is down around 7% on its BTC holdings, now worth around $54 billion, according to data from CoinGecko.

Related: Strategy halts Bitcoin buying via STRC: Will BTC price dip again?

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Strategy’s holdings are roughly 3% below the Bitcoin holdings of BlackRock’s iShares Bitcoin Trust ETF (IBIT), which held about 785,300 BTC on behalf of its clients after the close of trading on Friday.

US spot Bitcoin ETFs collectively held nearly 1.3 million BTC as of March 20, representing roughly 6.1% of the 21 million maximum Bitcoin supply, according to data from WalletPilot.

Magazine: Metaplanet’s Japan Bitcoin bet, Bithumb ordered suspension: Asia Express