empty
19.03.2024 09:17 PM
Bitcoin: is the bullish trend over?

In the past few days, the cryptocurrency market has been shaken by a sudden correction. The liquidation of positions totaling over $622 million became a source of significant selling pressure, sparking considerable interest in whether this is a sign of the end of the bull market or just a temporary correction.

Wave of Liquidations

Over the last 24 hours, positions worth more than $500 million in cryptocurrency have been lost, sharply driving down prices in the market. This has prompted many investors to contemplate the future of their investments, wondering how long the correction will last.

The recent cryptocurrency price drop has shocked everyone, especially considering that the market seemed invincible not long ago. Bitcoin lost over $107 million, indicating a shift in investor confidence from a bullish to a bearish trend.

Moreover, many did not anticipate such a significant correction. When it seemed that Bitcoin had stabilized above the $70,000 mark, the market sharply declined, and now it is barely holding above $63,000.

This image is no longer relevant

Market Alarm

This prolonged correction is causing concern in the market as investor sentiment has shifted from optimistic to cautious, and sometimes pessimistic. It was expected that the market would hold around $70,000, but the current correction has become an unexpected and alarming phenomenon.

Many were caught off guard by these fluctuations. During this time, investors are advised to exercise caution and maintain liquidity, considering the possibility of a trend change. Focusing on the long-term perspective rather than short-term fluctuations may be a more successful strategy for overcoming these unexpected market movements.

In addition to Bitcoin, major altcoins such as Ethereum and others have also suffered significant losses. The price of Ethereum dropped to $3,261, and Solana to $177. The biggest loser of the day was FRONT: the cryptocurrency's price fell by approximately 45%.

Forecasting the movement of both BTC and other cryptocurrencies is becoming increasingly challenging, especially considering that the Federal Reserve is likely to become a key factor this week.

Despite the chaos, there is hope for recovery.

The market has shown signs of potential recovery, mainly due to growing interest in Bitcoin ETFs. Just last week, these funds attracted over $2.5 billion in new investments, indicating the beginning of a bull market supported by institutional investors.

This phenomenon, known as institutional FOMO (fear of missing out), shows that large players still believe in the future of Bitcoin. The average price at which Bitcoin is acquired by new institutional investors is $56,400, mainly through spot ETFs. Those who purchased shares earlier paid around $21,300.

If the price of Bitcoin can hold above the key level of $56,000, there is a chance for recovery and possibly a new all-time high. According to Richard Teng, the current CEO of Binance, optimism still prevails. Teng predicts that by the end of the year, Bitcoin could surpass $80,000.

MicroStrategy Buys the Dip

While the price of Bitcoin may fluctuate in recent days, for some investors, this is not a problem. For example, MicroStrategy took advantage of the price drop to purchase an additional 9,245 BTC for approximately $623 million.

The purchase was announced by Michael Saylor, the company's CEO. He noted that the transaction was funded by proceeds from convertible notes and excess cash.

MicroStrategy recently completed the sale of convertible notes totaling over $1 billion, directing the proceeds to acquire even more of the underlying cryptocurrency.

Earlier this month, the company utilized this initiative to purchase 12,000 BTC for $800 million. The company's total holdings of 214,246 BTC are valued at over $13.5 billion (at current rates).

This reserve was acquired for approximately $7.5 billion at an average price of $35,160 per Bitcoin, meaning that MicroStrategy currently has a profit of about $6 billion (at least on paper).

The deal to acquire an additional 9,245 BTC demonstrates that even amidst market instability, MicroStrategy continues its strategy of actively investing in cryptocurrency.

This also underscores the company's confidence in the long-term potential of Bitcoin and other cryptocurrencies as assets capable of preserving and increasing capital.

Ekaterina Kiseleva,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Another Consolidation Before a Drop

Bitcoin and Ethereum continue their attempts to rise, but each time they face obstacles, suggesting that this is more of a consolidation phase within an ongoing bearish correction rather than

Jakub Novak 12:25 2025-03-14 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 14

Bitcoin and Ethereum are currently consolidating within channels, creating conditions that may lead to further declines. While many experts agree that the lows have already been reached and an unstoppable

Miroslaw Bawulski 08:20 2025-03-14 UTC+2

Technical Analysis of Intraday Price Movement of Uniswap Cryptocurrency, Friday March 14, 2025.

From what is seen on the 4-hour chart of the Uniswap cryptocurrency, although currently still under pressure, is indicated by its price movement moving below the EMA (21) which

Arief Makmur 07:03 2025-03-14 UTC+2

Technical Analysis of Intraday Price Movement of Doge Cryptocurrency, Friday March 14, 2025.

With the appearance of Convergence between the price movement of the Doge cryptocurrency and the Stochastic Oscillator indicator, it gives an indication that in the near future Doge

Arief Makmur 07:03 2025-03-14 UTC+2

Bitcoin and Ethereum Buyers Struggle to Gain Control

Bitcoin continues its recovery after the major sell-off at the beginning of the week. However, yesterday's failure to break the weekly high casts doubt on the short-term bullish outlook

Jakub Novak 10:22 2025-03-13 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 13

Bitcoin and Ethereum are locked within new channels. On the positive side, the intense selling pressure observed at the beginning of the week has subsided. However, there are concerns about

Miroslaw Bawulski 08:05 2025-03-13 UTC+2

Bitcoin Prepares for a Comeback

As Bitcoin and Ether bounce back strongly from their yearly lows, this indicates that the bull market is not finished yet. In this context, Senator Cynthia Lummis has reintroduced

Jakub Novak 23:59 2025-03-12 UTC+2

Bitcoin Depends on Sentiment in the U.S. Stock Market

The cryptocurrency market has seen a slight recovery after another sell-off earlier this week. However, the situation remains tense, and selling pressure could return at any moment

Jakub Novak 10:24 2025-03-12 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 12

Bitcoin and Ethereum have experienced a slight recovery after another sell-off, reaching new yearly lows. The panic seen in both the U.S. stock market and the cryptocurrency market has paused

Miroslaw Bawulski 08:03 2025-03-12 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 11

Bitcoin and Ethereum have both reached new annual lows, mirroring a decline in the U.S. stock market, which has now fallen for the fourth consecutive week. Yesterday, the crypto market

Miroslaw Bawulski 09:03 2025-03-11 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.