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Bitcoin price today: Holds up above $70,000 as range-bound trading persists

Published 03/29/2024, 08:54 AM
Updated 03/29/2024, 08:54 AM
© Reuters

Bitcoin price fell slightly on Friday while most financial markets stay shut for a public holiday. The largest cryptocurrency by market capitalization is sliding along with risk-correlated currencies and settling back into the middle of the narrow range above the $70,000 mark where it’s been trading throughout the week. 

The rangebound trading comes amid tepid flows into the U.S.-based spot Bitcoin ETFs and increased outflows of Grayscale's GBTC fund. Europe and U.S. stock markets will remain closed on Friday, March 29, in recognition of Good Friday.

Cryptocurrencies saw a modest rally earlier in the week, with Bitcoin (BTC) price soaring above $70,000 for the first time in ten days. This marks a rebound from recent downturns, scoring a more than 7% increase for the week. Ethereum (ETH) also enjoyed gains, rising by 6% in the same timeframe. 

Short-term intraday traders probably viewed the dip as a chance to buy into Bitcoin at an attractive entry point, creating a widespread sentiment that the worst of this downward correction is firmly in the past.

The positive momentum wasn't limited to Bitcoin and Ethereum; major layer-1 blockchain tokens such as Solana (SOL) and Avalanche (AVAX) saw advances exceeding 10%. 

The comeback resulted in the liquidation of $195 million in leveraged derivatives positions across various cryptocurrencies, with around $129 million of these betting on falling prices. Bitcoin short liquidations amounted to $53 million, which is below the average daily total seen in the recent weeks.

The modest number of short liquidations despite the price increase indicates that few traders were betting against the market with leverage, expecting further downturns. The price jump this week may mark the end of the downturn cycle in the cryptocurrency market, which saw Bitcoin's value fall below $61,000 from highs above $73,000. 

Bitcoin price rally could extend further

Bitcoin might be setting its sights on new record highs after it breaks out from a consolidation pattern it has formed on the daily chart. The upside scenario is supported by a number of central banks adopting a more dovish stance toward the monetary policy, which is expected to favor Bitcoin.

Despite the recent swings in the crypto market, analysts are still positive about Bitcoin's future prospects.

Markus Thielen, CEO of 10X Research, recently posted an analysis on the X platform, hinting at a possible Bitcoin price rally. His analysis particularly focuses on Bitcoin's performance history in April, suggesting the cryptocurrency might see a 12% increase.

Thielen points out that April has historically been a good month for Bitcoin, with six out of the last ten years showing strong price gains. 

Furthermore, the current fluctuations in Bitcoin's value are being linked by some analysts to the pre-halving phase. Experts note that the pre-halving retracement, a pattern found in past data, highlights Bitcoin's volatility, which often leads up to substantial price surges.

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