The Bitcoin (BTC) price is on the ropes once again, struggling to gain enough bullish momentum.
Earlier this Thursday, the largest cryptocurrency slipped below the $65,000 level on major spot exchanges, according to data provided by CoinGecko.
Over the past four hours alone, more than $37 million worth of long positions have been liquidated, CoinGlass sta shows.
However, short positions are still in the lead by liquidations over the past 24 hours, nearing $120 million.
A short-lived bounce
On Wednesday, Bitcoin bulls gathered enough strength to convincingly push the price of the largest cryptocurrency above the $67,000 level following dovish comments made by Federal Reserve Chairman Jerome Powell. In fact, Bitcoin even briefly managed to top $68,000 before retracing lower. However, this resistance level has proven to be very tough to crack.
Can someone kindly tell $BTC that this is a good place to bounce? pic.twitter.com/AXAsVTm1Zk
— Teddy (@TeddyCleps) March 21, 2024
The surge ended up being a bull trap, with Bitcoin paring a substantial portion of its gains. It remains to be seen whether Bitcoin will remain range-bound for the remainder of this volatility. Bears, however, seem to be poised to make another attempt to push the price of Bitcoin below the $60,000 level after failing to do so on Wednesday.
Is Grayscale to blame?
Massive outflows recorded by Grayscale’s GBTC appear to be fueling bearish sentiment as of now. On Wednesday, it lost another $281 million, recording the biggest outflows in history.
With that being said, leading ETF analyst Eric Balchunas recently dismissed the impact of Grayscale’s outflows on Bitcoin’s price action, arguing that they are bigger forces in play. On top of that, he pointed to the fact that there was no direct correlation between ETF flows and the flagship cryptocurrency’s price performance.
