Sustaining Bull Market: Bitcoin Trader Predicts Sub-$57K BTC Price

Bitcoin (BTC) ignored the United States unemployment data on March 21 as traders hoped for a longer period of price consolidation. BTC/USD hovered around $66,000, following data from Markets Pro and TradingView. The day’s Wall Street open saw lower-than-expected U.S. jobless claims after the Federal Reserve signaled plans to drop interest rates despite sticky inflation. Risk assets, including Bitcoin, reacted positively to the news, with the S&P 500 reaching new all-time highs and Bitcoin gaining 12%.

Some traders, Were not in a rush to reenter the market. Popular trader Aksel Kibar described the current situation as the “ideal condition.” He explained that parabolic moves are not sustainable in the long-term and that pauses allow for larger participation. Kibar had previously expressed his hope for a sideways trading period below the key $69,000 level before a breakout to new all-time highs. Fellow trader Bob Loukas also believed that a dip to lower levels would be beneficial for Bitcoin’s bull market sustainability.

On-chain analysis showed that panic selling was prevalent among Bitcoin investors as the price rebounded. The spent output profit ratio (SOPR) for Bitcoin turned negative on March 20 for only the fifth time this year. SOPR measures the profitability of coins used in transactions. A negative value indicates more loss-making transactions, and March 20 had the highest number of negative transactions since October 2023. Larger entities in the Bitcoin market continued to increase their exposure while smaller investors sold their holdings.

Bitcoin appeared to be consolidating its price after the positive news from the Federal Reserve. Traders welcomed this period of sideways trading and hoped for a more sustainable trend in the long run. Panic selling among smaller investors raised concerns about the market’s stability. Despite these uncertainties, Bitcoin’s larger entities remained bullish and continued to increase their investments.