Bitcoin Price Retests $63K as GBTC Outflows Decrease below $100M

On March 22, Bitcoin (BTC) experienced a decline in its price despite lower outflows from the Grayscale Bitcoin Trust (GBTC). Although GBTC witnessed reduced outflows, BTC failed to maintain its higher levels and could not challenge its previous all-time highs. Throughout the week, there were net outflows from the United States spot Bitcoin exchange-traded funds (ETFs), which is a unique occurrence in their short history.

Traders and analysts observed the current BTC price action and suspected deliberate maneuvers to undermine the bullish momentum. Some traders noticed specific individuals selling into the price, possibly trying to trigger a cascade effect and exploit weak price action. Other traders called for BTC to reclaim its previous high of $69,000 to ensure upward continuation. The weekly close of BTC was closely monitored to gauge the market sentiment.

Despite the current market conditions, some traders remained optimistic. They believed that if BTC could successfully turn the current range into a support zone, there would be minimal resistance for it to reach the target price of $100,000. These traders saw the potential for BTC to follow a falling wedge pattern and achieve significant upside gains.

A trader and analyst compared the current market situation to BTC’s bull market in 2016. They noted that prior to the block subsidy halving, there was a significant downside movement. They cautioned that BTC must maintain its current highs to avoid a similar fate where the initial positive reaction was short-lived. The next halving event is expected to occur in mid-April.

Despite lower outflows from the Grayscale Bitcoin Trust, BTC’s price struggled to maintain higher levels and challenge its previous all-time highs. Traders suspected deliberate attempts to undermine bullish momentum and called for BTC to reclaim its previous high for upward continuation. Some traders remained optimistic about BTC’s potential upside if it could flip the current price range into a support zone. A trader and analyst warned of the risk of a downside movement similar to BTC’s 2016 bull market.