Bitcoin Faces Resistance Despite Eased Grayscale Trust Outflows

Despite reduced outflows from Grayscale Bitcoin Trust (GBTC), Bitcoin (BTC) struggled to maintain higher levels following the March 22 market open, with its earlier rebound failing to hold. Cointelegraph Markets Pro and TradingView data revealed a dip in BTC price as $63,000 reappeared on the radar, with the largest cryptocurrency unable to challenge its old 2021 all-time high of $69,000.

Bitcoin Encounters Resistance Despite Easing Grayscale Bitcoin Trust Outflows

On March 22, Bitcoin (BTC) witnessed intraday lows upon the commencement of Wall Street trading despite a reduction in outflows from the Grayscale Bitcoin Trust (GBTC).

GBTC Outflows Subside

Data provided by Cointelegraph Markets Pro and TradingView indicated a lackluster BTC price performance as $63,000 re-emerged as a resistance level. BTC/USD failed to sustain elevated levels attained during an earlier rebound, with its previous all-time high of $69,000 in 2021 remaining intact.

Initial flows into and out of spot Bitcoin exchange-traded funds (ETFs) in the United States exhibited positive signs. According to preliminary data from crypto intelligence firm Arkham, GBTC experienced outflows of only $96 million, less than a third of the amount recorded at the beginning of the week.

Notably, every day this week has witnessed net outflows from spot ETFs, a unique occurrence in their brief history.

Suspected Deliberate Price Suppression

Analyzing the current BTC price action, renowned trader Skew expressed suspicions of deliberate efforts to undermine bullish momentum.

"Looks like someone is trying to force a cascade here again during weak price action," he remarked on X about spot order book data from Binance, the world's largest exchange by volume. Skew further stated that it was "pretty clear" that specific traders were selling into price.

Fellow trader Crypto Tony echoed the sentiment, highlighting the importance of reclaiming $69,000 for continued upside progress.

Eyes on the Weekly Close

"All eyes on the weekly close," stated trader Jelle. Maintaining an optimistic outlook, Jelle outlined the potential for further upside if Bitcoin could convert the current range into support.

"If Bitcoin successfully flips this zone for support, there is very little standing in the way of price making its way towards the target of this falling wedge: $100,000," he told his X followers.

Potential Parallels to 2016 Bull Market

On the downside, trader and analyst Rekt Capital drew comparisons to Bitcoin's 2016 bull market.

"Recently, Bitcoin has also produced a long downside wick on its Pre-Halving Retrace," he explained. "Bitcoin will need to continue to maintain these current highs to avoid a 2016-like fate where the initial reaction was strong but short-lived."

The next halving event is anticipated to occur in mid-April.

Disclaimer:

This article does not constitute investment advice or recommendations. Every investment and trading decision involves risk, and individuals should thoroughly research before making any decisions.