A Bitcoin Trader Suggests That Maintaining BTC Price Below $57,000 Would Support The Continuation Of The Bull Market

Recent BTC price analysis suggests that Bitcoin might benefit from a more significant decline to reset its bull market sustainability.

Source: www.ntv.com.tr

On March 21, Bitcoin disregarded United States unemployment data as traders anticipated a lengthier consolidation period for BTC price.

BTC Price In A Ranging State Is Considered An Ideal Condition

As BTC/USD hovered around $66,000, the day's Wall Street opening coincided with lower-than-expected U.S. jobless claims, which followed the Federal Reserve's indication of plans to lower interest rates despite persistent inflation. 

The outcome of the March 20 Federal Open Market Committee (FOMC) meeting was perceived as a signal for policy encouragement in risk assets, resulting in the S&P 500 reaching new all-time highs and Bitcoin gaining 12%. However, some were not in a hurry to re-enter price discovery.

“In my opinion, the ideal conditions may be unfolding. I'm content with it.”, remarked popular trader Aksel Kibar in his latest Bitcoin analysis on X.

In earlier March coverage, Kibar expressed his desire for a sideways trading period below the critical $69,000 level before anticipating a breakout to new all-time highs. Fellow trader Bob Loukas also shared a similar sentiment, suggesting that even a decline to levels lower than those recently observed would be advantageous. “Bitcoin seems to have a fairly clear path ahead. FOMC strength could potentially lead to lows on a 60-day timeframe.", he conveyed to X followers.

On-chain Data Indicates Panic Selling In The Bitcoin Market

As Bitcoin recovered, on-chain analysis highlighted the level of panic within the broader investor community. As noted by trading suite Decentrader, March 20 saw Bitcoin’s spent output profit ratio (SOPR) flip negative for only the fifth time this year.SOPR measures the extent to which coins used in transactions move at a profit or loss. Negative values indicate more loss-making transactions and March 20 scored higher than any negative day since October 2023. Therefore, it’s obvious that bigger Bitcoin players are expanding their holdings, while smaller investors are selling off.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.