The price of Bitcoin has surged back above the midpoint of the March market range after a prolonged consolidation period below $66,391. Confirming the upward trend, a successful retest of the 50% Fibonacci level is awaited, with $69,000 identified as the key level to surpass.
HUT 8 Mining CEO Asher Genoot highlighted that supply shortages on exchanges are compelling major banks to express interest in purchasing Bitcoin. Despite these shortages, reports indicate that large banks remain undeterred from acquiring BTC, showcasing the cryptocurrency’s enduring strength.
Exchanges’ supply shortages prompt banks to seek out Bitcoin miners.
During the early hours of Thursday’s New York session, the price of Bitcoin surged higher, establishing support at $66,391 and flipping the 50% Fibonacci level into a supportive role. This level holds significance as it represents the midpoint of the market range, stretching from the March 5 low of $59,005 to the all-time high of $73,777 recorded on March 14.
This upward movement follows reports from Bloomberg indicating that major banks are now directly contacting Bitcoin miners due to shortages of BTC on exchanges. Asher Genoot, CEO of Bitcoin miner HUT 8 Mining, notes that this trend is gaining traction. With the halving barely two weeks away, this interest suggests that banks are attempting to join the Bitcoin trend fashionably late. Nevertheless, their entry into the market, especially with the halving expected to initiate the next bull cycle, is considered timely.
This growing adoption is likely influenced by the landmark approval of several spot BTC exchange-traded funds (ETFs) on January 10, effectively bringing Bitcoin to Wall Street. In a similar vein, Morgan Stanley, with a market cap of $150 billion, has filed to purchase Bitcoin ETFs, with rumors hinting at potential approval of BTC ETFs on their platform in the near future.
Recent reports suggest that the bank, boasting up to $1.5 trillion in assets under management (AUM), is hastening to offer BTC ETFs to all clients. It could join DWS, a prominent German asset manager, which has partnered with Galaxy Digital to introduce physical BTC ETFs in Germany.
These underlying factors have contributed to the upward trajectory of Bitcoin’s price, drawing the attention of ETF analyst Eric Balchunas.
Meanwhile, Glassnode observes that the profit/loss ratio of Bitcoin short-term holders remains largely in favor of profit, with profit-taking exceeding losses by a significant margin of 50x.
The outlook for Bitcoin’s price remains optimistic, with short-term holders continuing to profit.
Bitcoin’s price is currently positioned above the 50% Fibonacci level at $66,391 but faces resistance from the 100, 200, and 50-day Simple Moving Averages (SMAs) at $67,435, $67,680, and $68,716, respectively.
To gather momentum for an upward move, Bitcoin ideally needs to retest the $66,391 level. A successful rebound from the 50% Fibonacci level would set a positive tone for an uptrend, with Bitcoin likely to target the $69,000 mark.
In a highly bullish scenario, Bitcoin could surpass its previous peak of $73,777, potentially reaching a new all-time high.
Conversely, if the SMAs reject Bitcoin’s price, resulting in the $66,391 level failing to act as support, the decline may continue. A breach and subsequent close below $65,000 would likely trigger additional sell orders, potentially leading the downtrend to find support around the $62,500 level.