The beginning of March brought new challenges for Bitcoin. The leading crypto asset is nearing multimonth lows, presenting traders with volatility and uncertainty.
Multimonth lows and market reaction
Last week, Bitcoin recorded the largest weekly decrease, losing a significant portion of its value. Analysts like Kevin Svenson note that the price remains in a critical parabolic trend zone. Traders, including SuperBro, are considering a retest of the $78,000 level despite some bullish divergences on short-term timeframes.
Macroeconomic influencing factors
With the release of the Consumer Price Index (CPI) and Producer Price Index (PPI) data, markets are transitioning to an increasingly risk-off stance. These macroeconomic indicators have heightened uncertainty, particularly ahead of the Federal Reserve's upcoming interest rate decisions.
Analysis and prospects for investors
Amid the current volatility, large investors such as whales and sharks have begun accumulating Bitcoin. Research from Santiment confirms that since March, large holders have added another 5,000 BTC to their portfolios, which may indicate a potential upward correction in the second half of the month.
Despite current challenges, many market participants see opportunities in the current landscape. Based on recent behavior of whales and large investors, the second half of March might be accompanied by a correction and potential recovery rally.
