Bitcoin price rally faces resistance as analysts point to a possible retest of $70,000 before the next leg up. Former BitMEX CEO Arthur Hayes expects short-term volatility, urging investors to remain patient.
Meanwhile, on-chain data shows that whales have been accumulating, suggesting a potential rebound.
BTC has struggled to maintain momentum after hitting a four-month low of $77,000 on Mar. 11.
At the time of writing, Bitcoin trades at $81,991, up 3.18% in the past 24 hours according CoinMarketCap data. Despite recent gains, analysts remain cautious as key metrics flash mixed signals.
Hayes: Bitcoin likely to bottom at $70K before the next rally
Hayes, in a Mar. 10 post on X, predicted that Bitcoin could dip to $70,000 before resuming its uptrend. He compared this to a typical 36% correction from an all-time high of $110,000, labeling it “normal for a bull market.”
He warned that for Bitcoin to rally again, traditional markets may need to decline first. Hayes argued that a financial downturn in stocks like the S&P 500 and Nasdaq could trigger intervention from central banks, fueling liquidity that would benefit BTC.
“The plan: Be patient,” he wrote. “Then you load up the truck.”
However, he cautioned that traders attempting to buy the dip could face additional turbulence. If BTC fails to hold $78,000, a drop to $75,000 remains possible.
Hayes pointed out that a concentration of options contracts between $70,000 and $75,000 could lead to further volatility.
Whales accumulate BTC as selling pressure eases
Despite the short-term uncertainty, on-chain data suggests large investors are buying the dip. CryptoQuant analyst Darkfost noted that the BTC whale ratio on Binance has declined, signaling reduced sell pressure from major holders.
According to a CryptoQuant post on X, large investors have accumulated nearly 65,000 BTC in the past 30 days. This suggests that institutions see current price levels as an attractive entry point.
“Bitcoin is showing signs of life, but valuation metrics remain in bearish territory,” CryptoQuant wrote in a Mar. 11 report.
Meanwhile, Bitcoin’s hash rate has reached near-record levels, creating an unusual divergence from price action.
Analyst James Van Straten noted that the hash rate is just 5% below its all-time high. If miners continue selling under financial strain, BTC could struggle to hold key support levels.
Macroeconomic factors and inflation data in focus for Bitcoin price
Bitcoin’s price action remains tied to broader economic conditions. U.S. inflation data set for release on Mar. 12 could influence risk appetite.
Prediction markets expect headline inflation to fall from 3.0% to 2.9%, potentially shaping the Federal Reserve’s monetary policy outlook.
CryptoQuant warned that Bitcoin demand has contracted at its fastest pace since July 2024, with spot ETFs turning into net sellers. This trend and uncertainty over Trump’s trade policies and global economic pressures have weighed on BTC’s momentum.
With whale accumulation rising but macroeconomic risks still looming, Bitcoin’s path forward remains uncertain. If BTC breaks below $75,000, analysts warn of a deeper correction toward $66,000.
However, if institutional buying continues, a recovery above $80,000 could set the stage for another rally.
