Bitcoin Price Volatility and Record Highs: What’s next for BTC?

Bitcoin Reaches Record Highs Ahead of ETF Buying Resuming as Price Surpasses $71,000.

BTC price surpasses $70,000 – 5 key Bitcoin updates this week

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Bitcoin (BTC) is starting off the week with a wobble, but not without reaching fresh all-time highs and sealing its highest-ever weekly close. However, breaking higher has proven to be a challenge due to resistance and selling pressure at key psychological price levels. The battle for price discovery continues, with Bitcoin caught in a state of flux. So, who will gain the upper hand this week?

📈 Record weekly highs precede BTC price discovery

Bitcoin witnessed classic volatility as it closed the week on March 10, with the highest weekly close in history. Despite reaching $69,000, the high was short-lived as BTC/USD dropped to $67,120 shortly after. However, a relief bounce followed, propelling Bitcoin to new all-time highs during the March 11 Asia trading session.

Popular trader Skew highlighted the importance of the $63,500 to $65,500 range in preserving the current uptrend, while noting considerable bids from $60,000 as a form of plunge protection. On-chain analytics revealed movement of coins dormant for up to a decade, suggesting increased activity before the drawdown.

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💰 ETF Bitcoin buyer pressure seen expanding

One of the main topics of interest this week is the resumption of buying by spot exchange-traded funds (ETFs) in the Bitcoin market. The ETF launch has already transformed the BTC price trajectory, leading to a sense of optimism among institutions. While reservations exist, the absence of major U.S. wirehouses like Morgan Stanley and UBS in approving Bitcoin indicates that the price action could be just the beginning.

Industry insiders are preparing for the approval of major warehouses, institutional consultants, and large corporations, which could lead to significant flows and further price acceleration throughout the year.

🔍 The impact of CPI week and Fed rate cuts

This week, the Consumer Price Index (CPI) print for February is due to be released, which can cause short-term volatility across various asset classes. The current narrative around inflation and Federal Reserve policy remains uncertain, with markets eager for interest rate cuts despite efforts by Fed officials, including Chair Jerome Powell, to manage expectations. The CPI figures and other data will serve as a key reference point leading up to the March Fed meeting.

⛏️ Puell Multiple nears multi-year high amid miner outflows

Bitcoin’s upcoming halving is a unique event in its history, and yet miners have been selling significantly around the highs. Outflows from miner wallets have been observed since the launch of ETFs in January, indicating their willingness to capitalize on the soaring price. Interestingly, despite the halving, the Puell Multiple, which measures coin issuance against its yearly moving average, has reached some of its highest levels in six years. This suggests that the current price surge may not yet be at a macro top.

💪 Hodlers stay resistant to selling

Even with the ongoing price discovery, long-term Bitcoin holders (LTHs) are holding on tightly to their coins. Transfer volumes for LTHs have not yet matched the levels seen in 2021, and the net unrealized profit/loss (NUPL) for LTHs is not indicative of a blow-off top. This suggests that Bitcoin’s most convicted holders are still holding at levels that precede the cycle peak.

📚 Relevant resources and further reading:

• Read more about the Bitcoin market structure and the block subsidy halving
• Learn about bridging the gap between east and west in blockchain education
• Check out the latest cryptocurrency news and updates on Blocking.net
• Stay up-to-date with real-time Bitcoin price charts on TradingView
• Gain insights into Bitcoin’s movements from on-chain analytics platform CryptoQuant

❓ Q&A: Your Bitcoin Questions Answered

Q: Will Bitcoin reach $1 million in the long term? A: While the prospect of Bitcoin reaching $1 million in the long term may have seemed conservative in the past, the accelerating bull run is causing some to speculate that a macro BTC price top may come sooner than anticipated. Each individual’s price prediction ultimately depends on their analysis of the market dynamics and factors influencing Bitcoin’s future.

Q: How do ETFs affect Bitcoin’s price trajectory? A: The introduction of spot exchange-traded funds (ETFs) has had a significant impact on Bitcoin’s price trajectory. ETFs have attracted institutional investors and created optimism in the market. As major U.S. wirehouses begin to approve Bitcoin, further price acceleration is expected as more investors become comfortable with the new products.

🚀 Future Outlook and Investment Strategy

Bitcoin’s price volatility continues to captivate both investors and market participants. As we navigate through potential catalysts, such as U.S. macroeconomic data releases and the upcoming Fed meeting, it is crucial to closely monitor price movements and their underlying causes. Heightened interest in Bitcoin ETFs and increasing institutional adoption are positive signs for long-term growth. However, it is important to exercise caution and conduct thorough research before making any investment decisions.

Now is the time to stay informed, reassess your investment strategies, and analyze Bitcoin’s long-term prospects. Stay connected with the latest news, expert opinions, and data to make informed decisions in this ever-evolving landscape of digital assets.

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Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment or financial advice. Always consult with a professional financial advisor before making any investment decisions.

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