According to technical analysts looking at the Bitcoin market on a short-term time horizon, the world’s largest cryptocurrency by market capitalization looks like it could be on the verge of a breakout towards the psychologically important $30,000 level and perhaps on towards the next major resistance zone around $32,500-$33,000.
Bitcoin’s correlation to US equity markets just fell to its lowest level in more than a year and a half. That’s according to crypto analytics firm CoinMetrics, who present a chart showing that Bitcoin’s 30-day pearson correlation between Bitcoin and the S&P 500 just fell under 0.20, its lowest level since September 2021.
In a matter of days, investors' view on the outlook for the Bitcoin price has flipped from being bearish to bullish, as represented by a shift in options market pricing. The flip in investor sentiment comes as the Bitcoin price surges above the $28,000 level for the first time since early last June, taking gains since earlier monthly lows to over 44%.
In less than one month, the Bitcoin network has added nearly one million wallets that hold a non-zero balance. According to data presented by Glassnode, in late February, the number of non-zero wallets on the network dipped from around 44.2 million to around 43.8 million by February the 23rd. However, this metric has since enjoyed a ferocious recovery to a new record high of 44.778 million as of Wednesday the 15th of March.
Bitcoin looks set to finish Wednesday’s session broadly unchanged in the mid-$24,000, handing market participants some much-needed time to catch their breath after a hectic seven days of price action. This time last week, Bitcoin had just dropped back under $22,000 for the first time in over three weeks, weighed alongside downside in US stocks amid concerns about Fed tightening.
A growing narrative amongst crypto and traditional asset class investors that Bitcoin might actually be a viable safe haven against potential turmoil in the traditional fiat-based fractional reserve banking system has helped propel the BTC to fresh multi-month highs versus its major altcoin peers this week.
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An Argentinian bitcoiner and blockchain industry insider has claimed that Bitcoin (BTC) and crypto should not be equated – and has explained that BTC could one day surpass gold as a trading commodity.
Bitcoin’s latest resurgence, which saw the world’s largest cryptocurrency by market capitalization hit a new nine-month high in the mid-$26,000s on Tuesday, has been accompanied by a number of key technical and on-chain indicators roaring back to health and once again send a bullish BTC signal.
Digital asset investment products saw their highest-ever weekly outflow last week, according to the latest Digital Asset Fund Flows Weekly Report released by CoinShares. The $255 million in net outflows amounted to 1.0% of total assets under management (AuM) fleeing from the space.
After falling another 1% on Friday to take its week-to-date losses above 10%, Bitcoin (BTC) is now oversold, according to the widely followed 14-Day Relative Strength Index (RSI) indicator. BTC/USD was last changing hands in the $20,100s, having dipped as low as the $19,500s earlier in the session, with its RSI last just above 28.
In wake of Bitcoin’s latest slide below the $21,000 level on Thursday as traders mull headwinds including a growing liquidity crisis amongst major crypto-friendly banks and ongoing macro headwinds as the US Federal Reserve signals risks, Bitcoin options have turned their most pessimistic on the cryptocurrency’s near-term price outlook this year.