Big speculators buying a dip and ETF inflows slowing down

Bitcoin rebounded above $70,000 after falling nearly 18% earlier this month. Currently, it trades near the $71,200 price tag. Technical indicators such as RSI, MACD, and Stochastic began reversing to the upside on the daily chart. In addition to that, the number of Bitcoin addresses with balances exceeding 1,000 BTC continued to rise, suggesting that some of the big players kept accumulating Bitcoin after a dip. Nevertheless, it is important to note that the number of large speculators is lower than a month ago when Bitcoin traded near the $57,000 mark.

There have also been some notable developments regarding Bitcoin ETFs. Most of the ETF inflows slowed down last week. Yet, the group’s leaders still managed to attract significant capital since our update on 12th March 2024. Below is a recap of the inflows/outflows for the most prominent Bitcoin ETFs between 11th March 2024 and 22nd March 2024:

- ARK 21Shares Bitcoin ETF (ARKB) = $183.71 million
- Bitwise Bitcoin ETF (BITB) = $159.1 million
- Grayscale Bitcoin Trust ETF (GBTC) = -3,380.51 million
- Fidelity Wise Origin Bitcoin Fund (FBTC) = $909.35 million
- Invesco Galaxy Bitcoin ETF (BTCO) = -$42.97 million
- iShares Bitcoin Trust (IBIT) = $3,629.27 million
- VanEck Bitcoin Trust (HODL) = $264.68 million
- WisdomTree Bitcoin Fund (BTCW) = $14.47 million

To conclude, it remains to be seen whether volatility in the cryptocurrency market will subdue and Bitcoin will continue marching higher. However, as per our previous assessments, unless there is a strong correction in the stock market, we expect Bitcoin corrections to be relatively shallow.

Illustration 1.01

Illustration 1.01 portrays the daily chart of BTCUSD and simple support/resistance levels derived from past peaks and troughs.

Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.