Key Insights:
- Bitcoin news highlights a leveraged wipeout as the Bitcoin price concludes another bearish week.
- Bitcoin ETFs recorded net outflows of $296.3 million during the week.
- Analyst says $66,000 Bitcoin price level may offer strong support backed by whales.
Liquidations are back in Bitcoin news headlines just days after it became apparent that open interest was rising. This meant that traders were making bets, especially after the week kicked off on a bullish leg.
Unfortunately, those bullish expectations were crushed as Bitcoin news turned bearish, especially in the second half of the week. Â Bitcoin price slid as low as $65,505 on Friday.
That bearish outcome triggered a substantial surge in liquidations, with longs taking the biggest hit. BTC long liquidations amounted to $171 million on Friday. This was noteworthy Bitcoin news because it was the highest daily long liquidations registered since 23 February.
Those liquidations surged when Bitcoin slid below $66,000. The surge signaled that many investors anticipated a recovery to the upside. Moreover, they have been accumulating while Bitcoin was in its consolidation zone.
Bitcoin News: Institutions Among the Major Drivers of The Bearish Weekly Conclusion
While liquidations were the symptoms, the cause was partially the selling pressure from institutions. Bitcoin ETF flow data revealed that net ETF flows amounted to $225.5 million on Friday.
This was the third-highest daily outflow since March began. In total, the net weekly outflows amounted to about $296 million. The Bitcoin ETF outflows appear to have had a significant impact on BTC price.
Sell pressure dropped substantially over the weekend. As a result, the price has since recovered above $66,000. This suggests that price may extend its decline if institutions continue selling once the market reopens on Monday.
In the meantime, whale activity has been significantly elevated during the weekend. Large orderbook data revealed that whales acquired Bitcoin worth $34.2 million across Binance, Coinbase, and OKX.
Whales also executed almost $2 billion in long positions on Binance and OKX futures. These signals meant that whales were back on the bullish side. Consequently, Bitcoin bears eased off their assault, allowing the cryptocurrency to hover above $66,000.
Where Will Bitcoin Price Go Next?
We previously pointed out that Bitcoin price was trading in a wedge pattern and was entering the tight squeeze zone. This means the cryptocurrency might be about to kick off April with a major directional move.
First, a recap of Bitcoin’s price action in March showed a failed attempt to exit the consolidation zone. Price has since then reverted to the consolidation zone, underscoring elevated uncertainty regarding its next move.
From its current level, Bitcoin price could still face another capitulation event if market conditions fail to improve. On the other hand, whales buying back the cryptocurrency during the weekend seemed like a sign that another short-term move to the upside was probable.
A recent CryptoQuant analysis noted that new whales acquired BTC near the $82,000 price level. Those whales are now in loss territory, meaning they were less incentivized to sell at a loss.
The analysis noted that the demand from the whales cohort propped up BTC prices. On the other hand, the Coinbase Premium Index flipped back into negative territory. This signaled weak demand from the US, where Coinbase is the top exchange.
Unfortunately, the Bitcoin price appears to be heavily influenced by macro factors in a negative way. A de-escalation of the current geopolitical situation may thus favor BTC bulls, while the opposite outcome could lead to further downside risk.