- Bitcoin’s price swings resemble 2017, with analysts predicting a possible drop to $60,750 before recovery.
- Whales are accumulating BTC despite the retail panic, signaling the potential for a market rebound.
Bitcoin’s sharp price fluctuations in March have led many to compare them to the 2017 market crash. The cryptocurrency recently fell from $86,000 to $81,000, then dipped further to the $76,000 range before rebounding slightly to $81,000.
This roller-coaster ride in Bitcoin’s price has raised concerns among investors, especially amid a broader market downturn. The price drop comes after the U.S. stock market experienced a significant decline, which could potentially affect Bitcoin’s trajectory shortly.
Bitcoin’s Drop Resembles 2017 Market Cycles
Bill Barhydt, CEO of Abra, compared Bitcoin’s latest decline to the 2017 market crash, noting similar patterns of volatility. He pointed out that BTC has undergone multiple 25% corrections over the past decade, each followed by a rebound. Barhydt suggested that if history repeats itself, Bitcoin could fall to $60,750 before recovering.
He attributed Bitcoin’s price swings to global economic shifts, including rising fiat liquidity and U.S. policy changes. He cited efforts to lower Treasury rates for debt refinancing and stabilize real estate markets as key factors affecting liquidity. Barhydt also pointed to China’s economic struggles, predicting increased money printing that could indirectly support Bitcoin and other assets.
Despite short-term volatility, he remained optimistic, urging investors to brace for more fluctuations. He emphasized that liquidity will continue to flow into stocks, crypto, and real estate, reinforcing Bitcoin’s long-term strength.
Whales Accumulate Bitcoin Despite Market Fears
While retail investors panic, large Bitcoin holders have been accumulating BTC worth hundreds of millions, according to Santiment. Data from the analytics firm revealed that wallets holding more than 10 BTC have added 4,486 BTC since March 3.
Santiment reported that whale and shark wallets had briefly reduced their holdings in February but resumed accumulation during the recent market dip. Historically, such accumulation signals confidence among major investors, even as retail sentiment turns bearish.
The platform also noted that crypto markets often move against crowd expectations. Based on social media trends, Bitcoin could rally when sentiment becomes overwhelmingly negative. Santiment suggested that true capitulation might occur when Bitcoin is widely predicted to drop to the $50,000–$69,000 range, with fewer mentions of higher targets like $100,000.
Institutional Investors and Mt. Gox Concerns Weigh on BTC
Institutional investors are closely monitoring Bitcoin’s price movement, particularly the $79,280 support level. As discussed by ETHNews, Bitcoin’s 11.3% weekly decline pushed it below its 200-day moving average, a critical indicator for long-term trends. Historically, trading below this level has preceded further corrections, while rebounds from this point have led to new all-time highs.
Meanwhile, concerns about Mt. Gox repayments have added pressure to the market. According to ETHNews, the defunct exchange recently transferred 11,833 BTC, worth approximately $932 million, raising fears that creditors might sell their reclaimed assets. Previous transfers linked to Mt. Gox led to price declines as investors anticipated increased selling pressure.
Despite these challenges, Bitcoin rebounded to $81,500 after stronger-than-expected U.S. job openings data and a delay in tariffs on Canadian steel and aluminum. Market analysts suggest that if BTC sustains its momentum, it could test the $83,800 resistance level. However, if selling pressure from institutional investors and Mt. Gox creditors increases, Bitcoin could face another downturn before a potential recovery.
