Bitcoin Bulls Face Mixed Signals on Wall Street as Crypto Consolidates

Bitcoin Bulls Face Mixed Signals on Wall Street

As the markets opened on Wall Street on March 26, Bitcoin (BTC) paused its recent gains to consolidate, leaving traders with mixed signals.

BTC Downside: Path of Least Resistance?

Intraday data indicates that Bitcoin's upward momentum faded, with BTC/USD dropping by up to 3.2%. Hovering near its all-time high of $69,000 set in 2021, Bitcoin seemed uncertain of its next direction after sharp gains over the past 24 hours.

Despite the setback, market dynamics suggest both bullish potential and the possibility of continued correction. Preliminary data from Arkham, a crypto intelligence firm, shows that outflows from the Grayscale Bitcoin Trust (GBTC) were a modest $120 million, significantly below the weekly average.

However, a lack of bid liquidity beneath the current spot price raises the odds of a return to lower support levels. Keith Alan, co-founder of Material Indicators, observed that "in terms of liquidity, the path of least resistance is down. That's not speculation."

Weekly and Monthly Candles: Pivotal Moments

Alan highlighted the upcoming weekly and monthly candle closes as pivotal events. "With last week's close at $68.9k and last month's close at $61.1k we could (and should) see one or both of those levels tested relative to the candle close/open on Sunday," he said.

Retracing 2020 Breakout Pattern?

Popular trader and analyst Rekt Capital emphasized the importance of flipping $69,000 into definitive support. According to his YouTube analysis, this move would create a solid foundation for price discovery and keep BTC/USD within historical norms.

Comparing Bitcoin's price patterns to its 2020 rally before the previous block subsidy halving, Rekt Capital noted that Bitcoin should be in its "pre-halving retracement" phase, followed by a "post-halving reaccumulation phase."

"We’ve seen a fantastic take us to new all-time highs. This pre-halving retrace of 18% has occurred, could be over, but of course, this pre-halving retrace exists to enable a sideways range — a reaccumulation structure that sees us just consolidate for a long time," he explained.

Disclaimer: This article does not provide investment advice. All investment decisions should be made after conducting thorough research and consulting with qualified financial professionals.