Key Points
- Bitcoin (BTC) surpasses $66,000 despite increasing outflows from Grayscale Bitcoin Trust (GBTC).
- Market observers predict potential volatility due to a high funding rate and open interest.
On March 4, Bitcoin (BTC) experienced a surge, pushing past the $66,000 mark despite the increasing outflows from its largest institutional investment vehicle, the Grayscale Bitcoin Trust (GBTC).
Market Observations and Predictions
The BTC price was observed to be building on an already strong day, reaching $66,483 on Bitstamp. This swift gain came after the weekly close and recorded a 5% increase on the day of writing.
With the all-time highs less than $3,000 away, market observers offered their predictions on what could likely come next. A contributor to an on-chain analytics firm suggested that Bitcoin might replicate the events of the previous week, where rapid gains led to volatility after the crash of the United States’ largest exchange, Coinbase.
The contributor forecasted a potential ETF buying squeeze up, a Coinbase circuit breaker, and a flash dump. However, Keith Alan, co-founder of a trading resource, maintained a more cautious tone, suggesting that Bitcoin could correct.
Technical Analysis and Market Behaviour
Alan identified a classic Cup & Handle pattern forming on the macro chart from the ATH. He stated that for this pattern to form, there needs to be some sort of pullback from the double top at the ATH. However, he also acknowledged that the market might ignore psychological pressure and continue beyond the record highs of $69,000.
Regardless of the increasing outflows from the GBTC, the BTC price continued to march onward. After a significant decline in the second half of February, March saw the outflows reverse trend, with the tally for March 4 surpassing half a billion dollars.
Despite the daily decrease since mid-January, GBTC remains the largest Bitcoin investment vehicle by BTC holdings. As of March 4, its holdings totaled 428,540 BTC or $28.9 billion.
