It was reported that the potential impact of the upcoming Morgan Stanley Spot Bitcoin ETF could be underestimated.
It was even predicted that a 2% allocation by the $8 trillion in assets under management Morgan Stanley Wealth Management, which recommends a BTC allocation of up to 4%, could change BlackRock’s IBIT in size.
In addition to these projections, the hash rate witnessed a decline of 10.2%. It showed the stress of miners and flagged tactical shutdowns and weaker operators leaving the network.
AMBCrypto reported that miner reserves reflect absorption of rewards and not significant sales.
Volatility over the weekends continued to pose a threat to short-term holders and traders. The most recent price drop to $68.2k on Sunday, March 22 was the result $111.4 million in long-term liquidations within 24 hours.
This was likely a result of escalating tensions between the US and Iran.
These were relatively modest figures compared to the liquidation flushes earlier this year. Could this mean that the price will have to drop further?
Exploring the Bitcoin Retracement Phase
The 1-day chart was simple. The swing structure was bearish, but the internal structure has turned bullish.
This meant that Bitcoin [BTC] would likely rise further in the coming weeks, despite the drop in hash rate.
The current rally is part of a broader retracement that could reach $83.4k-$89.8k.
Call to action from traders: buy
In one message on Xcrypto trader CrypNuevo noted that the decline to the $69,000 level could lead to a price recovery. It could also be accompanied by a deeper price drop, which has occurred in recent hours.
The buying opportunity has arrived. The BTC price has made a bullish divergence with the RSI indicator. It also has a bullish swing structure on the 4-hour chart.
Although the internal structure was bearish, the price was within the Fibonacci golden pocket.
The combination of divergence and golden pocket suggests that Bitcoin is likely to rise to the 23.6% expansion level at $78.4k over the next two weeks.
However, last week’s OBV downtrend showed steady bearish pressure. If this continues and forces a price drop below $65.6k, the bullish idea outlined here would be invalidated.
Final summary
- Bitcoin price action has been in a bearish long-term trend and a bullish short-term trend.
- BTC’s recent retracement below $69,000 likely presented a buying opportunity. It has already made a bullish divergence with momentum.