Bitcoin price eyes $69K as supply shortages on exchanges drive banks to pursue BTC miners

• Bitcoin price has reclaimed ground above the midline of the March market range after extended consolidation below $66,391.
• A successful retest of the 50% Fibonacci placeholder would confirm the uptrend as $69,000 remains the level to beat.
• HUT 8 Mining CEO Asher Genoot: Supply shortages on exchanges “are driving the largest banks" to reach out about buying.

Bitcoin (BTC) price has found strength, though pending confirmation, coming after reports that large banks are not letting supply shortages on exchages deter them from buying BTC. 

Also Read: Bitcoin price extends retreat from $69K threshold as BTC bulls wait for safer entry  

Shortages on exchanges drive banks to pursue Bitcoin miners

Bitcoin price leaped higher during the early hours of Thursday’s New York session, flipping the 50% Fibonacci placeholder into support at $66,391. This level is significant as it marks the midpoint of the market range, which stretches from $59,005, the March 5 low, to $73,777, the all-time high recorded on March 14.

It comes following reports in Bloomberg that the largest banks are now reaching out to Bitcoin miners directly as they decry BTC supply shortages on exchanges. Asher Genoot, CEO of Bitcoin miner HUT 8 Mining, says this activity is becoming more common. 

Considering the halving is out barely two weeks, this interest points to the banks trying to join the BTC party fashionably late. However, it is better late than never, especially as the halving is expected to kickstart the next bull cycle — that is, if history rhymes.

It points to growing adoption likely inspired by the landmark approval of multiple spot BTC exchange-traded funds (ETFs) on January 10, which brought BTC to Wall Street. In the same spirit, $150-billion-market-cap Morgan Stanley filed to buy Bitcoin ETFs, with rumors indicating that the financial firm could approve BTC ETFs on their platform soon.

However, recent reports indicate that the bank, boasting up to $1.5 trillion in assets under management (AUM), is reportedly racing to offer the BTC ETFs to all clients. It could join DWS, a large German asset manager, which has recently partnered with Galaxy Digital to launch physical BTC ETFs in Germany.

These fundamentals have played a part in driving Bitcoin price north, catching the eye of ETF analyst Eric Balchunas.

Meanwhile, Glassnode observes, “The profit/loss ratio of Bitcoin short-term holders remain well within a profit-dominated regime, with profit taking outsizing losses by 50x.”

Bitcoin price outlook as short-term holders remain in profit

Bitcoin price stands above the 50% Fibonacci placeholder of $66,391. It confronts resistance due to the 100, 200, and 50-day Simple Moving Averages (SMAs) at $67,435, $67,680, and $68,716, respectively.

For BTC to muster enough gusto for a move north, a retest of the $66,391 level would be ideal. A successful bounce atop the 50% Fibonacci placeholder would set the tone for an uptrend, with Bitcoin price likely to recapture $69,000.

In a highly bullish case, BTC price could extend the gains past the $73,777 peak, potentially recording a new all-time high.

BTC/USDT 1-day chart

On the other hand, a rejection from the SMAs where the $66,391 level fails to hold as support could see the drop extend. A break and close below $65,000 would encourage more sell orders, with the downtrend likely to bottom out around the $62,500 level. 

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