Bitcoin Remains at 70K as Halving Approaches

NOIDA (—Bitcoin remains at the $70K price threshold after a brief breakup with the price level. Despite outflows from Grayscale’s spot Bitcoin ETF continuing, traders continued to accumulate BTC tokens over the weekend as the token’s halving event approaches.

Grayscale’s GBTC has been bleeding BTC tokens at the rate of nearly 26,000 tokens per week since the fund started trading, according to data from blockchain intelligence firm Arkham. The firm also noted that GBTC would likely exhaust its Bitcoin holdings in 96 days at the current selling rate.

Bitcoin Halving
BTC price over the past seven days. Source: CoinStats

However, CEO Michael Sonnenshein has hinted that Grayscale might be looking to lower the fees for GBTC in the future, which could make the product more competitive against its alternatives. At present, GBTC has a management fee of 1.5%, compared to the 0.2% to 0.5% fees of its competitors.

Traders have either ignored the GBTC outflows or are likely hoping that the fund will recover once Genesis and FTX sales stop. The outlook is visible in how traders accumulated BTC tokens over the weekend, helping the token rally nearly 3% to a daily high while Bitcoin remained above the $71,500 on March 26.

Michael Silberberg, Head of Investor Relations at Alt Tab Capital, noted that despite the $1 billion ETF outflows in the last week, BTC price volatility remained normal.

While the initial record-breaking inflows may begin to slow, it is worth remembering that these ETFs have just launched, and it will take a while for RIAs, marketers, and wealth managers, in general, to be allocated into the space. I believe this is just the first inning in a very long path of growth for this asset class.

Michael Silberberg told CoinChapter in a comment

The Whales and Sharks Go Shopping Before Bitcoin Halving

On-chain data provider Santiment noted that Bitcoin sharks and whales had an accumulation party over the weekend.

51,959 collective #Bitcoin were accumulated by wallets that hold between 10-10K $BTC on Sunday alone. This translates to 0.263% of the entire currently available supply being accumulated in one day

Santiment noted

Bitcoin Halving
Analysts expect Bitcoin to retrace

As the Bitcoin halving event approaches, analysts expect Bitcoin to retrace, as the token has historically done prior to previous halving events.

If Rekt Capital’s analysis turns out true, and the pre-halving retrace is now over, BTC price would likely paint a fresh ATH either in the run-up to the halving event in April or maybe within weeks of the halving event.

Increased investor interest due to the spot ETF approval helped Bitcoin paint a shallower retrace before the upcoming halving. Moreover, the token’s price action also helped attract more buyers to the market.

BTC Bulls Content With $70,000

Meanwhile, BTC price faced some bearish pressure after reaching its daily high near $71,570 on March 26, but bulls managed to help Bitcoin remain above $70K, suggesting that traders remain positive on the token’s future.

Bitcoin Halving
BTCUSD daily price chart with RSI. Source:

However, if profit booking starts, BTC price could drop to the 20-day EMA (red wave) support near $65,200. Breaching the immediate support might force Bitcoin to test the support near $55,000.

Conversely, a continued rally could find Bitcoin targeting the 0.618 Fib resistance near $80,500. Breaking and consolidating above the immediate resistance might help BTC price rally to the resistance near $92,200 before correcting.

The RSI for BTC remained neutral, with a score of 60 on the daily charts.

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