Bitcoin’s Volatility Sparks Market Concerns Amid On-Chain Activity

Bitcoin’s recent price movements have rattled the cryptocurrency market, with the flagship digital asset slipping below the $70,000 mark for the second time in just three days.

As BTC dipped below $68,000, altcoins also experienced significant losses, except for outliers like SOL and WIF, prompting discussions among investors about potential strategies for navigating the market turbulence.

Analysts, such as Ali Martinez on X, are closely monitoring key support and resistance levels to gauge Bitcoin’s next move. BTC has found support in the range of $64,750 to $66,700, where a substantial number of addresses collectively hold a significant amount of BTC. 

Following the recent $128.37 million liquidation on #Binance due to #Bitcoin price correction, it looks like an additional $93.67 million in $BTC positions could face liquidation if #BTC rebounds to $72,800. pic.twitter.com/bGWwzJLrk2

— Ali (@ali_charts) March 14, 2024

However, breaching this support level could shift focus to the next demand zone between $60,760 and $62,790, safeguarded by a large number of addresses with substantial BTC holdings.

#Bitcoin has established a solid support range between $64,750 and $66,700, where 382,000 addresses hold more than 275,000 $BTC. Monitoring this level closely is crucial, as losing it could shift the focus to the next significant demand zone between $60,760 and $62,790,… pic.twitter.com/QlZzoojSNB

— Ali (@ali_charts) March 15, 2024

On the flip side, Bitcoin faces tough resistance between $70,180 and $71,340, with a considerable number of addresses holding BTC in this range. The market sentiment is further influenced by recent liquidations on exchanges like Binance, with millions in BTC positions facing liquidation if BTC rebounds to certain levels.

Recent on-chain reports have also captured attention, notably the awakening of a miner wallet dormant for nearly 14 years, depositing a significant amount of BTC to Coinbase. Additionally, a large BTC deposit to Binance hot wallet amidst the recent market drop raises questions about market dynamics and investor behavior.

Why is #Bitcoin down 6.6% today?

We noticed that a #Binance deposit wallet moved 4,637 $BTC($329M) to #Binance hot wallet in the past 24 hours.

Coincidentally, the deposit wallet also moved 4,876 $BTC($319M) to #Binance hot wallet during the $BTC drop on Mar 5. pic.twitter.com/EHEzGwV1U9

— Lookonchain (@lookonchain) March 15, 2024

BTC ETF net inflow data on March 14 revealed a significant drop compared to the previous day, indicating cautious investor sentiment amid market volatility.