- Bitcoin price remains above the November 2021 supply zone, extending from $58,375 to $65,518.
- BlackRock has expanded its list of authorized participants, drawing more players in the BTC ETF market.
- BTC’s 60-day correlation with altcoins has fallen to multi-year lows in Q1 2024 relative to the same periods in 2023 and 2022.
Bitcoin (BTC) price made an attempt north into the weekend, breaking past the $68,000 threshold. Whether this directional bias will be sustained remains on the balance, with analysts anticipating a correction before the next leg north. Meanwhile, reports indicate that more players are coming into the ETF scene thanks to BlackRock.
Also Read: Bitcoin Weekly Forecast: Short-term holders add 1.12 million BTC, what does this mean?
BlackRock increases Wall Street’s presence in Bitcoin market
Bitcoin price forged passed the $68,000 threshold on Friday, going as high as to top out at $68,756 before a correction. It came on the same day as the US unemployment rate data, with the initial response being terrible.
US UNEMPLOYMENT RATE DATA AND NON FARM PAYROLLS RELEASED
— MOIC Digital | Research (@moic_digital) April 5, 2024
• Non farm Payrolls
Forecast: 200K
Actual: 303K
• Unemployment Rate
Forecast: 3.9%
Actual: 3.8%
What's your take on these numbers? Share below! pic.twitter.com/fqJ3QnUoRj
However, the sentiment was improved by reports that BlackRock, which issues the IBIT exchange-traded fund (ETF) product, is bringing more players to the scene.
JUST IN: BlackRock updated its bitcoin ETF prospectus w/ many new Authorized Participants incl first-timers Citadel, Goldman Sachs, UBS, Citigroup. Takeaway: big time firms now want piece of action and/or are now OK being publicly associated w this. H/t @akibablade @CryptoSlate… pic.twitter.com/z5Ntb43VhO
— Eric Balchunas (@EricBalchunas) April 5, 2024
Specifically, the ETF issuer has added Goldman Sachs, Citadel, UBS and Citigroup to its BTC ETF, the IBIT, as authorized participants (AP). Meanwhile, and as reported, the biggest banks are reaching out to Bitcoin miners directly to buy Bitcoin because of "supply shortages on exchanges," according to the CEO of Hut8 Mining, Asher Genoot. While banks approach miners, cryptocurrency brokerage Genesis has finished selling $2.1 billion of its Grayscale Bitcoin ETF holdings.
JUST IN: Genesis has finished selling $2.1 Billion of its Grayscale Bitcoin ETF holding - Arkham
— Bitcoin Archive (@BTC_Archive) April 5, 2024
Send it!
Elsewhere, crypto exchange Coinbase says Bitcoin “dips are likely to be more aggressively bought” now because of new investors demanding to own digital gold (BTC). This is evidence of a possible supply shock. Adding to this, data according to Kaiko Research shows that in the first quarter of 2024, Bitcoin price’s 60-day correlation with altcoins has fallen to multi-year lows compared to the same period in 2023 and 2022.
#Bitcoin's 60-day correlation with altcoins has fallen to multi-year lows in Q1 2024, relative to the same period in 2023 and 2022. pic.twitter.com/8LiWeZuF73
— Kaiko (@KaikoData) April 5, 2024
Bitcoin price outlook as markets head into the weekend
Bitcoin price is holding above the weekly supply zone between $58,375 and $65,518. It sits on immediate support due to the 200-day Exponential Moving Average (EMA). If the bulls are able to haul BTC above the $69,000 threshold, it could encourage more buying pressure, sending the pioneer cryptocurrency to reclaim its $73,777 peak.
In a highly bullish case, Bitcoin price could clear the peak and potentially go as high as $75,000.
The position of the Relative Strength Index (RSI) well above the 50 mean level is bullish and is reinforced by the position of the Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) indicators in positive territory.
BTC/USDT 1-week chart
If sellers attempt to play, however, and are able to haul Bitcoin price below the midline of the supply zone at $61,947, a close below this level would confirm a continuation of the downtrend. In such a case, Bitcoin price could provide another buying opportunity around the $60,000 threshold or below it.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.