The bullish failure in BTC price to surpass local resistance trendline leads to $82k retest. Will this crash Bitcoin to $70k?
With a sudden cooldown in the crypto market recovery, Bitcoin is now back at $84,000. After an overnight pullback of 8.61%, the bearish trend follows with an intraday downfall of 2.32%.
Hence, with a 10% pullback within 36 hours, Bitcoin undermined the quick recovery amid the announcement of a U.S. crypto reserve. Will this pullback result in a breakdown rally in BTC prices?
Bitcoin Price Trend Forms Symmetrical Triangle
With a 24-hour low at $82,450, Bitcoin shows lower price rejection from the 61.80% Fibonacci level near $82,000. Furthermore, the lower price rejection comes from a long-coming support trendline that forms a symmetrical triangle with the local resistance trendline.
As the triangle pattern holds the fate of Bitcoin, the lower price rejection ends at a potential comeback if the market stabilizes. The sudden comeback of bearish momentum has dissolved the chances of a bullish crossover in the MACD and signal lines.
Furthermore, the daily RSI line has taken a reversal from the halfway level. Hence, the technical indicators reflect a rise in volatility, leading to increased uncertainty.
A New Wave of ETFs Outflow Days?
On March 3, the pullback in Bitcoin saw a $74.19 million outflow in the U.S. Bitcoin spot ETFs. The increased outflow highlights institutional weakness despite the announcement of the U.S. Crypto Reserve.
Driving the outflows, BlackRock dumped $77.97 million worth of Bitcoin, followed by Grayscale offloading $54.39 million. While the rest of the Bitcoin ETFs maintain a net-zero flow. ARK Invest was the only ETF to experience inflows, totaling $58.18 million.
Declining Net Flow Over Exchanges
Amid a lack of institutional support, Bitcoin’s net flow across exchanges remains negative. Net flow refers to the difference between Bitcoin entering and exiting exchanges.
Currently, the aggregated exchange net flow stands at -4.32K BTC, indicating that more Bitcoin is being withdrawn than deposited. This suggests a declining supply on exchanges, which could potentially create a supply squeeze and drive prices higher.
Over the past 7 days, the net flow has totaled -6.23K BTC, while the 30-day figure is at -3.75K BTC.
Will Bitcoin Price Crash to $70k?
Bitcoin’s price trend is currently trapped within a symmetrical triangle. The lower price rejection has helped keep Bitcoin above the 61.8% Fibonacci level, but the sudden bearish shift raises concerns about a potential breakdown.
If Bitcoin falls below the 61.8% Fibonacci level, a trendline breakout could push the price towards the 38.2% Fibonacci level, which is near $70,000.
On the bullish side, Bitcoin would need to break through the local resistance trendline near the 78.75% Fibonacci level around $92,000 to make a strong comeback.
A successful breakout could drive Bitcoin above the $106,000 supply zone, potentially creating a new all-time high. According to the Fibonacci levels, the 1.272 extension at $127,800 could represent Bitcoin’s next all-time high.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
