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Holds Above $70,000 as Range-Bound Trading Persists From Investing.com
the price fell slightly on Friday as most financial markets remain closed for the holidays. The largest cryptocurrency by market capitalization is sliding along with risk-related currencies and settling in the middle of the narrow range above the $70,000 mark, where it has been trading all week.
The rangebound trading comes amid tepid flows into US-based spot Bitcoin ETFs and growing outflows from Grayscale’s GBTC fund. European and US stock markets will be closed on Friday 29 March, in recognition of Good Friday.
Cryptocurrencies saw a modest rally earlier in the week, with the price of Bitcoin (BTC) rising above $70,000 for the first time in ten days. This marks a rebound from recent recessions, marking an increase of more than 7% for the week. (ETH) also posted gains, rising 6% in the same time frame.
Short-term intraday traders likely saw the drop as an opportunity to buy Bitcoin at an attractive entry point, creating a widespread feeling that the worst of this bearish correction is firmly behind us.
The positive momentum was not limited to Bitcoin and Ethereum; major layer 1 blockchain tokens such as (SOL) and (AVAX) have seen advances of more than 10%.
The return involved the liquidation of $195 million in leveraged derivatives positions across various cryptocurrencies, of which approximately $129 million was bet on price declines. Bitcoin short liquidations totaled $53 million, lower than the total daily average seen in recent weeks.
The modest number of short liquidations despite rising prices indicates that few traders were betting against the market with leverage, expecting further declines. This week’s price jump could mark the end of the cycle of recession in the cryptocurrency market, which has seen the value of Bitcoin fall below $61,000 from highs above $73,000.
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Bitcoin’s price rally could extend further
Bitcoin could be aiming for new record highs after breaking out of a consolidation pattern it has formed on the daily chart. The positive scenario is supported by a number of central banks adopting a more accommodative stance towards monetary policy, which should benefit Bitcoin.
Despite the recent swings in the cryptocurrency market, analysts are still positive about Bitcoin’s future prospects.
Markus Thielen, CEO of 10X Research, recently published an analysis on the X platform, suggesting a possible rise in Bitcoin prices. His analysis focuses specifically on Bitcoin’s performance history in April, suggesting the cryptocurrency could see a 12% increase.
Thielen points out that April has historically been a good month for Bitcoin, with six of the last ten years showing strong price increases.
Furthermore, some analysts link the current fluctuations in the value of Bitcoin to the pre-halving phase. Experts point out that the pre-halving retracement, a pattern seen in past data, highlights Bitcoin’s volatility, which often leads to substantial price increases.