Bitcoin (BTC) Crashes to $61000 Shortly After Hitting $69000- Should You Worry?

• The tragic crash of the Bitcoin price in the past couple of days has been linked to the movement of $69 million worth of the asset to some Coinbase addresses. 

• While a CryptoQuant analyst believes that the sales could continue, another analyst finds a huge similarity with a 2020 price move which signals a more upward surge. 

The crypto market left behind another dramatic scene in the past couple of days as Bitcoin (BTC) pressed “its bull run button” to set a new all-time high price of $69,300 on some exchanges. This was earlier confirmed in a Crypto News Flash publication. In a dramatic turn of events, the asset took a sharp nosedive, climbing down the price curve to seek support at the $59k zone.

Investigating this unexpected price action led to the discovery that some 2010 Bitcoin miners shook the market by initiating a $69 million worth of Bitcoin transfer (2000 BTCs) at $69,000, to some Coinbase addresses. This quickly got some renowned market analysts talking with CryptoQuant analyst Bradley Park issuing a sound of caution that massive sales could continue.

Shifting long-dormant Bitcoins to Coinbase, a major crypto exchange, could be the beginning of a sale that will continue. Given that the exchange order book shows liquidity of 5-10 Bitcoins for every $100 price change, a sale of 1,000 Bitcoins is likely to trigger a significant price decline. Especially when investors are looking to open short positions against Bitcoin’s all-time high, as was the case on Tuesday.

According to him, this movement serves as a reminder of a 40% drop in Bitcoin price recorded on March 12, 2020. Interestingly, that followed an earlier sharp increase in BTC inflows. As speculation rife among investors, another analyst identified as Alex Thorn has offered a promising analysis, indicating that there could be another massive price jump. 

Thorn Sees More Upward Move for Bitcoin 

In his post, Thorn drew the attention that Bitcoin touched the $20k price zone twice in December 2020, and took a nosedive of 11%, before breaching that level to $69k. Per his observation, the current Bitcoin price movement is showing similarities to the 2020 cycle. 

Immediately after this, Bitcoin took a rebound to edge closer to its all-time high as it retouched $67k at the time of writing. Analysts observed that despite that massive liquidation, inflows into spot Bitcoin Exchange-Traded Fund (ETF) remained strong with BlackRock alone amassing $760 million on March 5. 

Alex Adelman, CEO of Lolli believes that the $500 million in daily average inflows into ETFs indicates a strong demand for the asset. This, outpacing the rate of production, means the price would continue to surge. According to him, the impact of the Bitcoin halving would even drive the price higher above $150k. 

Following the Halving increased scarcity and strong demand from retail and institutional investors will likely push Bitcoin’s price even higher. Based on historical trends following the Halving, bitcoin’s price could top $150,000 in the next year.

A quick analysis of Bitcoin’s seven-day chart indicates a buying signal. From the chart, Bitcoin has recorded a weekly run of 12% and is still targeting to breach the all-time high. This echoes earlier coverage by Crypto News Flash that the Bitcoin price could hit $70k this week, and could be triggered by some highlighted factors.

Tradingview data shows that several metrics including Momentum, MACD Level, Ultimate Oscillator, Exponential Moving Averages, Simple Moving Averages, as well as the Hull Moving Averages show a buying signal.