Key Points
- Bitcoin’s price experienced a significant correction, touching the $67k mark, but has since recovered.
- Selling sentiment is currently dominant in the market, with potential for another price correction.
Bitcoin’s price recently underwent a major adjustment, reaching the $67k mark. Despite this, the leading cryptocurrency managed to recover and saw a positive trend in its daily charts.
Market Reactions to Bitcoin’s Price Drop
On March 15th, Bitcoin’s price took a significant hit, dropping to $67,200. This price drop elicited interesting reactions from major exchanges and investors. For instance, a Binance deposit wallet transferred 4,637 BTC, worth over $329 million, to a Binance hot wallet during this period.
It was also observed that Bitcoin’s liquidation volume surged to over $143.6 million on March 14th. A recent tweet from IntoTheBlock indicated that selling pressure on Bitcoin was high, with over $750 million in Bitcoin being withdrawn from exchanges. The majority of these sell-offs originated from Bitfinex and Kraken.
Bitcoin’s Recovery and Current State
Despite the increase in liquidation, Bitcoin managed to recover somewhat, with its daily chart turning green. At the time of writing, Bitcoin was trading at $68,996.20 with a market capitalization of over $1.36 trillion.
An analysis of CryptoQuant’s data revealed that Bitcoin’s exchange reserve was decreasing, suggesting that selling pressure was dropping. However, other metrics appeared bearish. For instance, its aSORP was red, indicating that more investors were selling at a profit.
Furthermore, Bitcoin’s Coinbase and Korea premiums were red, indicating a dominant selling sentiment among US and Korean investors. The technical indicator MACD supported the sellers as it displayed a bearish crossover, and Bitcoin’s Relative Strength Index (RSI) also appeared bearish. These indicators suggest that the chances of Bitcoin experiencing another price correction are high.
