Bitcoin's sharp price fluctuations in March have led many to compare them to the 2017 market crash. The cryptocurrency recently fell from $86,000 to $81,000, then dipped further to the $76,000 range before rebounding slightly to $81,000. This roller-coaster ride in Bitcoin's price has raised concerns among investors, especially amid a broader market downturn.
Bitcoin's Drop Resembles 2017 Market Cycles
Bill Barhydt, CEO of Abra, compared Bitcoin's latest decline to the 2017 market crash, noting similar patterns of volatility. He pointed out that BTC has undergone multiple 25% corrections over the past decade, each followed by a rebound. Barhydt suggested that if history repeats itself, Bitcoin could fall to $60,750 before recovering. He attributed Bitcoin’s price swings to global economic shifts, including rising fiat liquidity and U.S. policy changes.
Whales Accumulate Bitcoin Despite Market Fears
While retail investors panic, large Bitcoin holders have been accumulating BTC worth hundreds of millions, according to Santiment. Data from the analytics firm revealed that wallets holding more than 10 BTC have added 4,486 BTC since March 3. Historically, such accumulation signals confidence among major investors, even as retail sentiment turns bearish.
Institutional Investors and Mt. Gox Concerns Weigh on BTC
Institutional investors are closely monitoring Bitcoin's price movement, particularly the $79,280 support level. As discussed by ETHNews, Bitcoin's 11.3% weekly decline pushed it below its 200-day moving average, a critical indicator for long-term trends. Meanwhile, concerns about Mt. Gox repayments have added pressure to the market. Earlier transfers linked to Mt. Gox led to price declines as investors anticipated increased selling pressure.
Despite current challenges, Bitcoin rebounded to $81,500 after stronger-than-expected U.S. job openings data and a delay in tariffs on Canadian steel and aluminum. Market analysts suggest that if BTC sustains its momentum, it could test the $83,800 resistance level. However, if selling pressure from institutional investors and Mt. Gox creditors increases, Bitcoin could face another downturn before a potential recovery.
