The Bitcoin (BTC) price has managed to recoup some of its early week losses by surging to $70,000 on Friday, March 15. However, BTC continues to face rejection at $70,000 and has again retraced back to $68,717 as of press time.
Bitcoin To Enter Strong Consolidation
Renowned Bitcoin analyst Willy Woo offers insights into the current state of the cryptocurrency market, noting that Bitcoin’s Spent Output Profit Ratio (SOPR) is peaking. This observation suggests that the remainder of March is likely to be characterized by consolidation around the last recorded all-time high.
Comparing historical trends, Woo points out that during similar periods in the past, significant “buy the dip” opportunities have emerged. In Q4 2020, for instance, the dip presented a buying opportunity with a decline of 17%. In Q1 2017, amid higher volatility, the dip reached as low as 31%.
As Bitcoin navigates this consolidation phase, market participants will closely monitor developments to capitalize on potential buying opportunities.
BTC Price Action Ahead
The Bitcoin price witnessed a solid rally with 55% gains so far in 2024 hitting a new all-time high. As the selling pressure on BTC grows, investors are confused as to what could be the right entry point for Bitcoin.
In a recent analysis, crypto analyst Michael van de Poppe highlights ongoing bearish signals for BTC, noting the presence of a valid bearish divergence. Van de Poppe underscores this observation with references to lower timeframes, lower highs, and a distinct rejection at the $70,500 level.
According to Van de Poppe, these indicators point towards a corrective phase, with potential downside targets in the range of $57,000 to $61,000. Additionally, he suggests that Bitcoin may have reached its peak prior to the upcoming halving event.
During a recent CNBC interview, Galaxy Digital founder Mike Novogratz cautioned that Bitcoin’s ongoing upward trend might reverse if outflows from spot market Bitcoin exchange-traded funds (ETFs) surpass inflows. As CoinGape reported, the inflows into Bitcoin ETFs have slowed during the recent BTC price correction.
Nonetheless, Novogratz expressed optimism regarding Bitcoin’s base price, estimating it to range between $50,000 and $55,000, barring any unforeseen significant events.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
