Bitcoin sales prevail above the 70000 level

02 April 2024 95
Bitcoin sales prevail above the 70000 level

Bitcoin prices begin April with a corrective pullback from the 71500 resistance level. Another attempt to update last week's historic highs failed. Cryptocurrency market participants are not yet ready to sustain price growth above the 70000 level, preferring to take profits. As a result, bitcoin failed to hold the short-term sidewall of 69000-71500 and broke through its lower boundary. The next stop of the downward movement is expected near the 64000 level.


Bloomberg analysts note the negative impact on the cryptocurrency market from the strong economic statistics from the United States. Yesterday's data showed the US manufacture returning to growth for the first time in a year and a half. Stefan von Hänisch, head of trading at OSL SG Pte, pointed to the adjustment in traders' expectations regarding the degree of monetary easing by the Federal Reserve. Now, the proportions of market participants predicting 2 and 3 rate cuts in 2024 are almost equal.


In addition, investors continue to withdraw funds from bitcoin ETFs. Bloomberg estimates that another $86 million was withdrawn from the top 10 ETFs in the US on Monday. The figure is small compared to the inflows of more than $12 billion in the previous two months, but it also suggests a change in investor behavior. Without new inflows, it will be difficult for the major cryptocurrency to continue its uptrend.


Meanwhile, bitcoin ETFs may soon face competition from similar funds that invest in ether. The US Securities and Exchange Commission (SEC) has scheduled a review of applications for their approval for 23 May. According to CoinShares, market participants made net sales of $46.4 million worth of ether last month, while bitcoin purchases exceeded $4 billion. However, with the approval of the Ether ETF, this trend could be reversed.


While bitcoin quotes are still below the 69000 level, the most likely scenario is a continuation of the downward movement towards the 64000 level.

Consider the following trading strategy:

Sell BTCUSD not higher than the level of 69000. Take profit - 64000. Stop loss - 71500.

Traders may also use a Trailing stop instead of a fixed Stop loss at their discretion

This content is for informational purposes only and is not intended to be investing advice.

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