Key Points
- Bitcoin (BTC) remained resilient despite US unemployment data on March 21, with hopes for prolonged price consolidation.
- On-chain analysis uncovers panic selling among the broader investor base.
Despite the release of United States unemployment data on March 21, Bitcoin (BTC) remained resilient, with traders anticipating a longer period of price consolidation.
Bitcoin’s Stability amidst Market Uncertainty
The BTC/USD hovered around $66,000 as the Wall Street market opened. This followed lower-than-expected U.S. jobless claims, which came after the Federal Reserve indicated plans to reduce interest rates despite persistent inflation.
The results of the Federal Open Market Committee (FOMC) meeting on March 20 were perceived as a green light on policy by risk assets. This led to the S&P 500 reaching new all-time highs and Bitcoin increasing by 12%.
Analysts’ Perspectives on Bitcoin’s Price Movement
However, some traders were not in a hurry to reenter price discovery. Notable trader Aksel Kibar expressed satisfaction with the current situation, stating that parabolic moves are not beneficial for the long-term trend. He hoped for a sideways trading period below the key $69,000 level before a breakout to new all-time highs.
Fellow trader Bob Loukas suggested that even a dip to lower levels than those recently seen could be advantageous. He proposed that if a move lower still had to come, this tag of 10dma is where it turns to a lower low, which would be structurally better for bull market sustainability.
On-chain data revealed panic selling among the broader investor base. Trading suite Decentrader noted that Bitcoin’s spent output profit ratio (SOPR) turned negative for only the fifth time this year on March 20. SOPR measures the extent to which coins used in transactions move at a profit or loss, with negative values indicating more loss-making transactions.
Despite the panic selling, larger BTC entities continue to increase their exposure as smaller investor classes sell.
