Amid a volatile weekend, Bitcoin (BTC) traders are closely watching the crucial support level around $60,000 as the cryptocurrency faces significant selling pressure, resulting in a notable price decline.
Despite the recent sell-off, market sentiment remains cautiously optimistic as traders anticipate potential price recovery driven by various factors, including institutional interest and the emergence of a sizable futures gap.
Bitcoin faces weekend sell-off, but resilience sparks hope
Over the weekend, Bitcoin experienced a sharp decline, hitting its lowest level since March 6, with prices dropping to $64,522 on Bitstamp.
Despite the recent correction, Bitcoin’s price retracement remained relatively modest, totaling around 12%. Previous market cycles have witnessed more significant pullbacks while still maintaining the broader uptrend, leaving many market observers optimistic about Bitcoin’s resilience.
The sell-off was attributed to sustained selling pressure in the spot market, particularly noticeable since Bitcoin’s peak at $74,000.
Notably, major exchanges such as Coinbase and Binance saw continuous spot-selling activities.
Analysts identified key support zones for Bitcoin bids, focusing on the range between $60,000 and $64,000.
Optimism amidst market correction
Despite the bearish sentiment, optimism prevails among market observers, particularly regarding the imminent resumption of buying activities from United States spot Bitcoin exchange-traded funds (ETFs).
Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, emphasized the potential impact of institutional wealth allocation to Bitcoin, suggesting that the influx of liquidity from institutional investors could drive substantial price movements.
Fahrer’s remarks reflect the anticipation of a significant capital inflow into Bitcoin, with rumors circulating about institutional investors preparing to allocate substantial funds to the cryptocurrency in the coming months.
As Bitcoin traders assess the market landscape, attention is drawn to the widening gap in CME Group’s Bitcoin futures market, which closed at $69,135 on March 15.
The notable gap between CME futures prices and the spot price of Bitcoin could potentially serve as a catalyst for price relief, aligning with historical patterns where such gaps have been filled in subsequent trading sessions.
Bitcoin traders eye rebound amidst futures-spot convergence
With more than 12 hours remaining until the weekly close, some traders anticipate a possible rebound early in the week, driven in part by the convergence of futures and spot prices.
This convergence could mitigate the ongoing bearish sentiment and potentially pave the way for renewed upward momentum in Bitcoin’s price action.
Despite facing significant selling pressure and experiencing a notable price correction, Bitcoin traders remain vigilant as they monitor critical support levels and anticipate potential catalysts for price recovery.
While the emergence of a substantial futures gap presents an opportunity for relief, market sentiment remains cautiously optimistic, buoyed by expectations of institutional investment inflows and the resilience of Bitcoin’s broader uptrend.
As the cryptocurrency market continues to evolve, traders brace themselves for further volatility while remaining attentive to emerging trends and developments.
