The price of bitcoin is currently above $70,000 despite ongoing range-bound trading.
Friday saw a small decline in the price of bitcoin although most financial markets were closed due to a public holiday. The biggest cryptocurrency by market capitalization is retreating into the centre of the small band above $70,000 that it has been trading in all week, along with risk-correlated currencies.
Range Bound trading coincides with higher withdrawals from Grayscale’s GBTC fund and mild inflows into the US-based spot Bitcoin ETFs. In observance of Good Friday, the stock markets in the United States and Europe will be closed on Friday, March 29.
Early in the week, there was a slight surge in cryptocurrency prices, with the price of Bitcoin (BTC) rising above $70,000 for the first time in 10 days. This represents a recovery from recent declines, with a weekly increase of almost 7%. Ethereum (ETH) saw gains as well, increasing by 6% within that same period.
It is likely that short-term intraday traders saw the decline as an opportunity to invest in Bitcoin at a low cost of entry, which helped to disseminate the belief that the worst of this decline is well behind us.
Not just Bitcoin and Ethereum experienced good momentum; significant layer-1 blockchain tokens like Solana (SOL) and Avalanche (AVAX) enjoyed increases of over 10%.
Following the recovery, $195 million in leveraged derivatives positions across a range of cryptocurrencies were liquidated, with about $129 million of those holdings being bets on declining prices. The amount of bitcoin short liquidations was $53 million, less than the daily average of the previous few weeks.
The small number of short liquidations in spite of the price increase suggests that few traders were using leverage to bet against the market in anticipation of more declines. With this week’s price surge, the cryptocurrency market’s downward cycle may have come to an end. During this cycle, Bitcoin’s value dropped from highs of over $73,000 to below $61,000.
The price surge for bitcoin might continue.
After breaking out of a consolidation pattern that it created on the daily chart, Bitcoin may be aiming for fresh record highs. Many central banks taking a more dovish approach to monetary policy, which is anticipated to benefit Bitcoin, supports the optimistic scenario.
Experts remain optimistic about Bitcoin’s future potential in spite of the recent fluctuations in the cryptocurrency market.
The CEO of 10X Research, Markus Thielen, recently made a suggestion on a potential Bitcoin price increase in an analysis he posted on the X platform. His research, which mostly examines Bitcoin’s performance in April, indicates that the cryptocurrency may rise by 12%.
According to Thielen, Bitcoin has typically seen large price increases in April—six of the last ten years have shown such advances.
Furthermore, some analysts are connecting the pre-halving period to the current volatility in the value of Bitcoin. Experts point out that the pre-halving retracement, a trend observed in historical data, emphasizes the volatility of Bitcoin, which frequently precedes significant price increases.