Bitcoin price is reeling from a strong rejection from above $60,000 that has sent the leading cryptocurrency by market cap tumbling back down by more than $10,000 per coin. However, massive ongoing outflows of BTC continue to leave popular cryptocurrency exchange Coinbase Pro at an alarming rate.
The overall lack of BTC supply that only shrinks further by the day, will once again be dominated by demand, potentially causing the previously trending cryptocurrency to bounce. Could that bounce develop into a resumption of the historic uptrend? Here’s what fundamentals are saying about further continuation or correction for Bitcoin price ahead.
Coinbase BTC Outflows Continue, What Corporations Are Potentially Buying The Dip?
Bitcoin price is down more than $10,000 from its current all-time high, yet still more than double the previous peak set back in 2017.
The leading cryptocurrency has now spent more than 100 days above the former high, and likely will never return to levels near or below it.
In fact, Bitcoin price action might not deviate much lower than current levels, thanks to massive Coinbase Pro outflows.
— Joseph Young (@iamjosephyoung) March 26, 2021
Thousands of BTC leaving the popular cryptocurrency exchange catering to institutional investors has been called the most bullish signal “ever” and that was hundreds of thousands of BTC ago.
Technical factors are overheated in the cryptocurrency after such a sizable price increase, but soon, fundamentals could take over leading to a strong bounce.
Bitcoin Price To Bounce As Supply Shock Expected To Overpower Bearish Technicals
Thus far, the presence of institutions and corporations with deep wallets and cash reserves with dwindling buying power has left very little room for corrections.
Dips are being bought up long before retracements reach to past bull market totals, but that doesn’t mean momentum can’t finally turn down for even a brief time.
Institutions and corporations buying each dip is preventing any serious corrections | Source: BTCUSD on TradingView.com
But eventually, regardless of any technical factors, no BTC left to buy could cause a supply shock that drives prices to hundreds of thousands of dollars per coin before demand begins to wane again, and available supply returns to exchanges for investors to take profit.
Related Reading | Coinbase Bitcoin Outflows Are The Strongest Bullish Signal “Ever”
At that point, the top will be in. For now, the ongoing massive outflows suggest the top is nowhere near in sight, and that bigger players are currently buying the blood in the streets.
The line in the sand drawn between bears and bulls moving higher lies at $60,000. Another move beyond that level could be an all-clear sign that the rally is ready to continue higher.
Featured image from Deposit Photos, Charts from TradingView.com