Bitcoin’s Volatility Sparks Market Concerns Amid On-Chain Activity

Bitcoin’s recent price movements have rattled the cryptocurrency market, with the flagship digital asset slipping below the $70,000 mark for the second time in just three days.

As BTC dipped below $68,000, altcoins also experienced significant losses, except for outliers like SOL and WIF, prompting discussions among investors about potential strategies for navigating the market turbulence.

Analysts, such as Ali Martinez on X, are closely monitoring key support and resistance levels to gauge Bitcoin’s next move. BTC has found support in the range of $64,750 to $66,700, where a substantial number of addresses collectively hold a significant amount of BTC. 

However, breaching this support level could shift focus to the next demand zone between $60,760 and $62,790, safeguarded by a large number of addresses with substantial BTC holdings.

On the flip side, Bitcoin faces tough resistance between $70,180 and $71,340, with a considerable number of addresses holding BTC in this range. The market sentiment is further influenced by recent liquidations on exchanges like Binance, with millions in BTC positions facing liquidation if BTC rebounds to certain levels.

Awakening Of Dormant Bitcoin Miner Wallet Sparks Sell Pressure

Recent on-chain reports have also captured attention, notably the awakening of a miner wallet dormant for nearly 14 years, depositing a significant amount of BTC to Coinbase. Additionally, a large BTC deposit to Binance hot wallet amidst the recent market drop raises questions about market dynamics and investor behavior.

BTC ETF net inflow data on March 14 revealed a significant drop compared to the previous day, indicating cautious investor sentiment amid market volatility. 

Furthermore, over $750 million worth of BTC was withdrawn from exchanges, marking the highest withdrawal volume since May 2023, with notable outflows from platforms like Bitfinex and Kraken.

As Bitcoin’s price movements continue to impact the broader cryptocurrency market, investors remain vigilant, closely monitoring on-chain data and market indicators to navigate uncertain market conditions.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: kebox/123RF // Image Effects by Colorcinch

Via: https://themerkle.com

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