It was reported that the potential impact of the upcoming Morgan Stanley Spot Bitcoin ETF could be underestimated.
In fact, it was projected that a 2% allocation by the $8 trillion AUM Morgan Stanley Wealth Management, which recommends a BTC allocation of up to 4%, could flip BlackRock’s IBIT in size.
Alongside these projections, the hash rate witnessed a 10.2% drop. It showcased miner stress and signaled tactical shutdowns and weaker operators leaving the network.
AMBCrypto reported that the miner reserves reflect reward absorption and not significant selling.
Volatility during weekends continued to threaten short-term holders and traders. The most recent price drop to $68.2k on Sunday, the 22nd of March, triggered $111.4 million in long liquidations in 24 hours.
It was likely a result of the flaring US-Iran tensions.
These were relatively tame numbers compared to liquidation flushes earlier this year. Could this mean that the price has further to fall?
Exploring the Bitcoin retracement phase
The 1-day chart was straightforward. The swing structure was bearish, but the internal structure has flipped bullishly.
This meant that Bitcoin [BTC] was likely to push higher in the coming weeks, despite the dip in hash rate.
The current rally is part of a wider retracement that can go up to $83.4k-$89.8k.
Traders’ call to action- Buy
In a post on X, crypto trader CrypNuevo observed that the drop to the $69k level could see a price rebound. It could also be accompanied by a deeper price drop, which has occurred in recent hours.
The buying opportunity has arrived. The BTC price has made a bullish divergence with the RSI indicator. It also has a bullish swing structure on the 4-hour chart.
Though the internal structure was bearish, the price was within the Fibonacci golden pocket.
The divergence and golden pocket combined to suggest that Bitcoin is likely to rally to the 23.6% extension level at $78.4k over the next week or two.
However, the downtrend in the OBV over the past week was telling of steady bearish pressure. If it continues and forces a price drop below $65.6k, the bullish idea outlined here would be invalidated.
Final Summary
- The Bitcoin price action was in a bearish long-term trend and a bullish short-term trend.
- BTC’s recent retracement below $69k likely offered a buying opportunity. It has already made a bullish divergence with momentum.