Despite a recent increase in outflows from the largest institutional investment vehicle, Bitcoin (BTC) continues its surge towards all-time highs. On March 4, Bitcoin surpassed $66,000, reaching $66,412 during the Wall Street opening.
This advancement comes as outflows from the Grayscale Bitcoin Trust (GBTC) gain momentum once again.
Navigating Bitcoin’s Potential Next Moves
Bitcoin (BTC) showed significant upward momentum on Bitstamp, reaching a peak of $66,483, as per TradingView data. This surge followed a 5% increase after the weekly close.
BTC/USD 1-hour chart. Source: TradingView
As Bitcoin approaches its all-time highs, analysts are weighing various scenarios for its trajectory. Venturefounder, contributing to CryptoQuant, hinted at a possible repeat of recent events, where sudden gains led to heightened volatility following a crash on Coinbase, the largest U.S. exchange.
BTC/USD 1-week chart with “cup and handle” pattern. Source: Venturefounder/X
Keith Alan, co-founder of Material Indicators, took a cautious approach, noting the formation of a classic Cup & Handle pattern on the macro chart from the all-time high (ATH). He stressed the importance of a pullback from the ATH’s double top for the pattern’s full development. Nonetheless, Alan acknowledged the chance of the market surpassing the $69,000 record highs despite psychological pressure.
Alan underscored the risk for over-leveraged traders, suggesting vigilance in monitoring a potential return to the macro channel, currently situated in the $74,000 to $75,000 range, as a potential rejection point. He also mentioned that this threshold could shift higher if reaching it takes longer than expected.
Bitcoin’s Resilience Amid GBTC Outflows
Despite increasing outflows from the Grayscale Bitcoin Trust (GBTC), Bitcoin (BTC) continued its upward march. Notably, March 4 witnessed outflows from GBTC surpassing half a billion dollars, marking a reversal in trend from the decline observed in the latter half of February.
Popular trader Daan Crypto Trades highlighted this trend reversal, noting a significant net outflow of -$139.6 million on Friday, primarily attributed to a substantial outflow from GBTC amounting to -$492.4 million. Data from crypto intelligence firm Arkham corroborated this observation.
Grayscale Bitcoin Trust (GBTC) BTC holdings (screenshot). Source: CoinGlass
Despite the outflows, GBTC remains the largest Bitcoin investment vehicle in terms of BTC holdings. As of March 4, GBTC’s holdings totaled 428,540 BTC, equivalent to $28.9 billion, according to monitoring resource CoinGlass.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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