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⚡Bitcoin Price Analysis📊

Croxroad

30 Mar 2024 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🦕 Crypto Market Watch

Bitcoin (BTC) continues to tread water below its 2021 all-time high (ATH), marking the fourth consecutive week of stagnant price action. Despite hopes buoyed by slowing outflows from Grayscale's ETF, the short-term outlook for BTC remains bearish from a technical standpoint.

Trading around $69,138, BTC's price is plagued by uncertainty as it grapples with a warning sell signal from the Momentum Reversal Indicator (MRI). This signal suggests the potential for a correction, with the next candlestick likely to indicate a downturn. The technical setup hints at a possible correction, with ideal accumulation levels ranging from $53,120 to $59,111. However, an unexpected surge in selling pressure could extend this correction to the $45,156 weekly support level.

While a correction seems probable given the current technical outlook, a strong weekly close that sees BTC flip $75,000 into a support zone would signal continued bullish momentum. Such a move would invalidate the bearish thesis and pave the way for a push towards the next psychological barrier at $80,000.

Investors are closely monitoring BTC's price action, weighing technical signals against broader market dynamics. Despite the recent stagnation, optimism persists for a potential rally, with discussions ranging from potential buy-the-dip opportunities to speculative scenarios such as a dead cat bounce or a surge towards $75,000 or even $80,000.

As BTC navigates these uncertain waters, market participants remain vigilant for signs of a definitive directional bias, mindful of the potential implications for both short-term traders and long-term investors alike.

🩳 MicroStrategy Stock Dips

MicroStrategy (MSTR) shares faced a significant downturn, plummeting by as much as 14% on Thursday following a report from prominent short seller Kerrisdale Capital. The report revealed Kerrisdale's decision to short-sell MicroStrategy stock while simultaneously betting on Bitcoin (BTC). According to the report, the surge in MicroStrategy's shares, fueled by the rise in Bitcoin's price, appears overblown, with the short seller cautioning against overvaluation.

Amidst this turbulence, data from Glassnode, an on-chain analytics firm, illustrates a substantial outflow of Bitcoin from crypto exchanges since the launch of United States spot exchange-traded funds (ETFs). Over $9.5 billion worth of Bitcoin has been withdrawn from major trading platforms since the inception of these ETFs, indicating a trend of mass withdrawals favouring Bitcoin bulls. This trend persists, with daily withdrawals exceeding 22,000 BTC on March 27 alone, marking the third-largest daily withdrawal tally in 2024.

In parallel, a significant transfer of stablecoin USD Coin (USDC) to Coinbase, the largest U.S. crypto exchange, was observed, amounting to a record-breaking $1.4 billion. This influx prompts speculation about imminent strong buying pressure in the market. As market observers contemplate the long-term impact of ETFs on Bitcoin's available supply and price, optimism surrounding Bitcoin's forthcoming block subsidy halving event in mid-April grows. This event, coupled with pent-up institutional demand via ETFs and a programmatic supply squeeze, heralds a potential shift in Bitcoin's status as the world's hardest asset. With Bitcoin poised for significant developments in April, anticipation mounts within the crypto community.

🏰 Buying Crypto With Cash And Holding It

Contrary to common belief, simply buying and holding crypto isn't immediately taxable. The tax implications arise when you sell your crypto and realise gains. Join us as we navigate through the complexities of crypto taxes and provide clarity on when and how taxes are incurred in the crypto space.