Key Points
- Bitcoin (BTC) faced significant sell-side pressure, hitting new lows at $64,522.
- Despite the bearish trend, some market observers remain optimistic due to potential institutional wealth allocation.
Bitcoin's value took a hit over the weekend, dropping towards $60,000.
New lows of $64,522 were observed on Bitstamp, following a week of all-time highs.
Selling Pressure on Bitcoin
The cryptocurrency faced considerable sell-side pressure, with a series of lower lows and failed rebounds.
This offloading trend picked up pace ahead of the much-anticipated weekly candle close.
Trader Skew identified zones of interest for bidders on major exchanges, focusing on the range between $60,000 and $64,000.
The selling was mainly driven by market selling, particularly from Coinbase and Binance.
Market Response
Despite the sell-off, some entities engaged in large-scale dollar cost averaging (DCA) at the lows, providing low-timeframe bounces.
This latest correction in Bitcoin's bull market amounted to around 12%.
Despite this, many remain positive, citing the ongoing buying from US spot Bitcoin exchange-traded funds (ETFs), set to resume on March 18.
Thomas Fahrer, CEO of Apollo, a crypto-focused reviews portal, responded to the situation by saying, "Yes, this is Bear Trap."
Fahrer suggested that the real money hasn't started allocating yet, and rumors of a fresh institutional wealth allocation to Bitcoin could be on the horizon.
With over 12 hours left until the weekly close, some are eyeing the potential for an early-week comeback.
The gap in CME Group’s Bitcoin futures market, which is rapidly widening amid the weekend's drawdown, could provide an impetus for relief.
CME futures closed on March 15 at $69,135, creating a "gap" between the spot price and the futures price.
