Traders in the crypto market likely anticipate a Bitcoin price retest at $60,000 after the latest dip, although the broader indicators are still robust and bullish.
The latest crypto market dip has led to market participants expecting a Bitcoin price retest at $60,000. Bitcoin is still trading well above this level but around the same levels of its 20-day moving average. If bulls help arrest the dip and stage a turnaround, market sentiments could again turn optimistic. Currently, the global crypto market has shed some losses but is still trading in a stable manner.
There could be a few reasons for the crypto market dip. Bitcoin whales are reportedly selling their holdings and booking profits. On the other hand, the Grayscale spot Bitcoin ETFs saw higher outflows recently. Inflows into other ETFs also reduced relatively, leading to net negative flows. Other altcoins in the market have also followed suit and seen losses.
On a positive note, crypto analytics firm Kaiko revealed the crypto market’s liquidity position had broadly improved.
It said, “Bitcoin 2% market depth (denominated in USD) has been rising YTD, and briefly surpassed its pre-FTX average of $470mn last week. Much of this increase can be attributed to the surge in BTC prices which rose at a faster pace than liquidity since the ETF approvals.”
BTC/USD 1D price chart
Bitcoin is currently trading at around $63,900 on March 19, 2024, with BTC/USD trading lower by a margin of 7% in the last 24 hours. Bitcoin’s market cap was trading at around $ 1.23 trillion in the last 24 hours.
BTC/USD is trading higher than its 20-day EMA (63,412.34), as BTC’s 24-hour volume was at around $67 billion. The global crypto market cap decreased by around 8%, trading above $2.36 trillion. BTC’s year-to-date returns are at 50.28%.
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