During a weekend of trading Bitcoin experienced a decline as it neared the $60,000 mark on March 17. After reaching record highs in the week the digital currency faced increased selling pressure leading to a pattern of declining values and unsuccessful recovery attempts. This indicated a rise, in the selling of assets before the weekly candle closed.
Traders and analysts closely watched for areas where buyers might show interest pinpointing zones between $60,000 and $64,000. Market trends suggested that much of the selling pressure came from market participants themselves with activity on platforms like Coinbase and Binance. Continuous selling from the $74,000 level led to a 12% correction in Bitcoins bull market.
Despite this setback some observers remained positive, about prospects. They anticipated renewed buying interest after United States based spot Bitcoin exchange traded funds (ETFs) were expected to resume trading on March 18.
Thomas Fahrer, the CEO of Apollo, a platform that specializes in reviewing cryptocurrencies and monitoring ETF movements suggested that the current market situation could be a “Bear Trap.” Fahrer pointed out the impact of liquidity inflows, on Bitcoin ETFs underscoring the untouched investment opportunities from traditional financial sources.
The excitement surrounding the expected increase in investments in Bitcoin over the few months added an extra layer of complexity to the market dynamics. As the weeks trading activities wind down attention has shifted to a gap in CME Groups Bitcoin futures market.
This gap, which widened during weekend selling pressure reached $4,000 as the futures market closed at $69,135 on March 15. Past trends indicate that such gaps often trigger market corrections and could pave the way for Bitcoins rebound week.
With uncertainty prevailing in these waters all eyes are on how selling pressure interacts with the projected uptick in investments through ETFs and institutional channels. As conditions seem ripe for a recovery upcoming days will play a role, in shaping Bitcoins short term trajectory.
