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Despite bears trying to gain ground on the Bitcoin (BTC) market in the last 24 hours, support at the intra-day low of $69,601 stood firm. Bitcoin's resilience above the $70,000 mark has garnered attention, especially with Coinbase data signaling renewed interest from institutional investors. At press time, BTC was exchanging hands at $ 70,300, a 0.25% surge from the intra-day low.
BTC/USD 24-hour price chart (source: CoinMarketCap)
The Coinbase premium gap, which measures the price difference between Coinbase Pro and Binance, has turned green again, indicating increased buying pressure from institutional investors. This metric is often seen as a reliable indicator of institutional activity in the Bitcoin market.
On-chain analyst Maartunn suggests that this uptick in the premium suggests that US institutions may have resumed buying Bitcoin. This could lead to significant inflows into spot Bitcoin ETFs in the coming week, especially ahead of the anticipated Bitcoin halving in mid-April.
Analysts at Ryze Labs revealed the gap between hedge funds (in purple) and asset managers (in red) continues to widen. "This divergence indicates that while asset managers continue to purchase Bitcoin futures, hedge funds are increasingly short-selling. In the current bullish climate, this dynamic hints at a potential short squeeze, which could propel Bitcoin's next upward movement," they said.
Popular analyst Michael van de Poppe said the sideways action for Bitcoin caused a consolidation near $70K. However, he assures that Bitcoin is still following the general 4-year cycle path. He added," Honestly, this cycle is likely going to surprise many people. In a five years time, $70,000 per Bitcoin is classified cheap."
Meanwhile, futures and options buying remain dull due to holidays and traders awaiting further drop in BTC price. CME BTC futures open interest fell 0.32% to $11.64 billion. Total BTC options open interest dropped from $32.31 billion to $21.52 billion.
MicroStrategy's significant Bitcoin acquisitions have propelled its stock price to new heights. With the company's total Bitcoin holdings surpassing 214,000 BTC, equivalent to 1% of the maximum Bitcoin supply, attention has turned to the impact of this accumulation on the firm's stock and MSTR performance.
Despite MicroStrategy's bullish outlook and its impressive Bitcoin holdings, concerns about the stock's valuation have emerged. According to Markus Thielen's 10X Research, a prominent crypto research firm, MicroStrategy shares are deemed overvalued by as much as 60% based on regression with Bitcoin. On the other hand, when evaluated against the company's actual Bitcoin holdings, the overvaluation jumps to nearly 100%.
Thielen's analysis suggests that MicroStrategy's stock price may not accurately reflect its intrinsic value, considering its heavy reliance on Bitcoin performance. While MicroStrategy has emerged as a flagbearer for Bitcoin enthusiasts in the corporate sector, questions linger about whether the stock's meteoric rise aligns with fundamental market principles.
Despite recent volatility, Bitcoin's price remains above $70,000, with support at key levels holding firm. Analysts are closely monitoring the weekly, monthly, and quarterly candle closes for potential signals of future price movements. A weekly candle close above the critical $70,000 support level could pave the way for further upside potential, with some analysts eyeing a target of $97,000 in the near term.
The Titan of Crypto, another analyst, recently took to X to share profound insights into Bitcoin's potential trajectory, hinting that $97000 might be the next milestone. Even though there was a death cross on the daily timeframe recently, the expert thinks that a bull flag pattern is emerging, a sign of an upward trend. However, investors should be careful while they wait for proof in the next few days that the death cross is real or fake.
Speculating on the next move, the Titan suggests that a weekly candle closure above the critical $70,000 support could pave the way for the ambitious target of $97k.
This prediction stands out because of the apparent extremely bullish momentum in the market. The analyst ventures further, stating that given the current robust momentum, there's a noteworthy possibility that the projected $97k target might be attained even before halving.
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