Bitcoin Corrected Due to Pressure from US Economic Data, What's Its Fate?

Liputan6.com, Jakarta The crypto market, especially Bitcoin (BTC) experienced a sharp correction recently dropping almost 7% in the last 24 hours from its latest ATH of USD 73,682.

Tokocrypto trader, Fyqieh Fachrur, explained that the decline in Bitcoin prices was triggered by a decrease in inflows from Bitcoin ETF investment funds and the release of US economic data showing that inflation was tougher than expected.

A surge in net outflows from Grayscale Bitcoin Trust (GBTC) and a pullback in iShares Bitcoin Trust (IBIT) net inflows impacted the decline. GBTC recorded net outflows of USD 276.5 million, up from USD 79.0 million on Thursday, March 14 2024. IBIT recorded net inflows decreased from USD 849.0 million to USD 586.5 million on the same day.

“Bitcoin price as of this morning is trading around USD 68,000. Technical analysis shows that there is potential for BTC to continue its temporary correction in the short term. A break of BTC above the USD 69,000 resistance level would support a move to the all-time high of USD 73,810 (March 14 ), “said Fyqieh in his review, Saturday (16/3/2024).

Potency

According to him, Bitcoin's return to ATH shows the potential for a higher price at the USD 75,000 level. BTC-spot ETF market flow data and US economic data are the focal points.

However, a drop below the USD 66,000 level could signal a fall to the USD 64,000 support level. The Daily RSI 14 reading, 61.68, shows BTC returning to ATH USD 73,810 before entering overbought territory.

“Most likely, the crypto market will continue to experience a temporary correction and return to sideways mode this weekend,” said Fyqieh.

Notably, next week will see the next Federal Open Market Committee (FOMC) meeting, scheduled for Wednesday, March 20, 2024, which will not result in a rate cut. Moreover, according to the latest estimates from the CME Group's FedWatch Tool, the odds of a rate cut at the next FOMC meeting in May are only 6.2% at the time of writing.

Another cause of the correction is data from IntoTheBlock which shows that currently 100% of Bitcoin holders have made a profit. However, this could also trigger a sell-off if Bitcoin falls below an important support level in the short term.

With the crypto Bitcoin hitting new highs this week and reaching USD 73K, it is not surprising that big investors are selling some more of their BTC stash. This can be seen from the large number of large asset owners sending thousands of BTC to crypto exchanges, as reported by blockchain tracker Whale Alert.