Bitcoin price recently confirmed a breakout through the wedge, positively affecting market sentiment. However, uncertainty remains due to fluctuations in demand and supply.
Overview of Bitcoin Price Movements
Last week, Bitcoin price entered a squeeze zone of its previously identified wedge. As of now, it has broken above the wedge's descending resistance line. The fear and greed index improved to 47 in the last 24 hours, showing a positive market sentiment compared to 32 a week ago. At a price of $88,276, the breakout holds on, although uncertainty prevails with MFI signaling profit-taking.
Whale and Institutional Flow Analysis
This week, Bitcoin large holders' netflows increased to 311.8 BTC from a low of 58.16 BTC, supporting momentum for breaking the descending resistance. However, whale activity shifted to net outflows, peaking at -629.42 BTC on Monday, indicating a focus on short-term profit-taking. Despite $111 million spot inflows on Monday and Tuesday, ETF flows remain weak.
Potential for Further Bitcoin Price Growth
If Bitcoin can avoid more downside, it might finish March on an upward trend. Positive news about institutional adoption, such as GameStop adding BTC to its treasury, highlights ongoing interest in the cryptocurrency. The latest Federal Reserve data, excluding rate hikes and possibly allowing cuts as early as April, may facilitate liquidity flows into Bitcoin. The M2 money supply hitting a new ATH also indicates potential for increased inflows into risk assets.
Ongoing institutional interest and stabilization of the money supply support the potential for further Bitcoin price growth in the coming weeks if other factors are favorable.
