Key Points
- Bitcoin (BTC) experienced new volatility as the Wall Street trading session opened on March 27.
- The BTC price saw a sudden correction after reaching its highest levels in nearly two weeks.
Bitcoin Faces New Volatility
Bitcoin experienced fresh volatility as the Wall Street trading session began on March 27. Analysts suggested that short liquidations were overdue, which may have contributed to the market turbulence.
The BTC price action reached its highest levels in nearly two weeks, hitting $71,754 on Bitstamp. However, a sudden correction led to a drop of $1,300 in minutes, totaling more than a 4% decrease.
Market Observations and Predictions
The latest data showed encouraging flows for the United States spot Bitcoin exchange-traded funds (ETFs). After net inflows of more than $400 million the day prior, Wall Street trading began with a modest 1,300 BTC ($91 million) outflow from the Grayscale Bitcoin Trust (GBTC).
Liquidating short BTC positions has become a key topic of discussion among market observers. The latest data from on-chain monitoring resource CoinGlass showed bids thickening around $69,000, potentially providing a safety net should the market reverse.
As the BTC price hovered around $68,500, some market analysts called for calm. They suggested that this price point could form a potentially suitable long entry and would not necessarily signify a major corrective move.
There were also suggestions that a further correction could be on the horizon before the price attempts to reach all-time highs again.
