Bitcoin (BTC) surged above $66,000 during the opening of Wall Street on March 4, even as outflows from its largest institutional investment vehicle continued to increase.
BTC/USD 1-hour chart. Source: TradingView
According to data from Cointelegraph Markets Pro and TradingView, BTC’s price continued to climb, reaching $66,483 on Bitstamp. The market experienced significant gains after the weekly close and was up 5% at the time of writing, coming close to its all-time high.
Market observers speculated on what could happen next. Venturefounder, a contributor to on-chain analytics firm CryptoQuant, predicted that Bitcoin may follow a similar pattern as the previous week, where sudden gains led to volatility after Coinbase, the largest exchange in the United States, experienced a crash.
“Almost 1% funding rate and $31 billion of open interest. Get ready for a $69k ETF buying squeeze up, Coinbase circuit breaker, and flash dump in the same day again. Same roadmap as last Monday. Today is easy, the rest of the week will be hard,” Venturefounder forecasted.
Keith Alan, co-founder of trading resource Material Indicators, took a more cautious approach and focused on where Bitcoin could potentially correct. He noted the formation of a classic Cup & Handle pattern on the macro chart from the all-time high.
BTC/USD 1-week chart with “cup and handle” pattern. Source: Venturefounder/X
Alan acknowledged that the market might disregard psychological pressure and continue to surpass the record highs of $69,000. However, he cautioned that the predictability of the pattern might result in the market not providing an easy trade, as it tends to punish over-leveraged traders.
Despite increasing outflows from the Grayscale Bitcoin Trust (GBTC), the price of BTC continued to rise. In March, outflows reversed their downward trend and surpassed half a billion dollars on March 4.
“Outflows from Grayscale definitely re-accelerating again above $60K,” popular trader Daan Crypto Trades commented in response to the GBTC data from crypto intelligence firm Arkham.
Grayscale Bitcoin Trust (GBTC) BTC holdings (screenshot). Source: CoinGlass
Despite the decreasing daily holdings since mid-January, GBTC remains the largest Bitcoin investment vehicle, with 428,540 BTC ($28.9 billion) as of March 4, according to data from CoinGlass.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.