Bitcoin kicked off the trading week with a sprint on Monday, swiftly surpassing the $60,000 mark and aiming squarely at the previous all-time highs from November 2021 — a formidable barrier for bitcoin bears who had been notably absent since the breakout above $50,000.

On Coinbase, the previous highest intraday price of $69,000 on November 10, 2021, stood as a milestone. Twenty-eight months later, bitcoin finally breached this high watermark, reaching a peak of $69,384.

However, financial markets seldom offer a smooth ride to new records. Amidst a backdrop of excessive leverage, funding, and greed in the bitcoin arena, bears emerged from their winter hibernation, unleashing a relentless wave of selling pressure. This onslaught sent prices plummeting by over $10,000(close to a 15% drop) throughout the remainder of the trading day, ultimately bottoming out at $59,224 for the day and week.

Looking at the total weekly liquidations, we can see Tuesday had an outsized number of long futures positions being liquidated. Aggregated across all major leveraged bitcoin futures exchanges, close to $900 million in longs were liquidated following the sell-off initiated slightly above the all-time high.

Following a sharp decline below the $60,000 mark fueled by long liquidations, bulls staged a remarkable comeback, aggressively driving the market back up. By Friday, the market had not only recovered all losses from Tuesday but also made a bold attempt to revisit previous highs.

A surge in buying volume followed the selling climax, facilitating Bitcoin’s recovery to pre-Tuesday levels. The volatility witnessed during this period was staggering, with price swings exceeding $20,000, representing a massive 30% intra-week range.

Just 30 minutes into the NYSE session on Friday, significant buyers reentered the market, propelling prices beyond Tuesday’s peak to reach a high of $70,200. For a fleeting moment, it seemed that Bitcoin hodlers’ hopes since November 2021 were materializing. However, this breakout proved to be short-lived, reminiscent of Tuesday’s false breakout attempt, as prices swiftly retreated nearly $4,000 to hit a Friday low of $66,624.

BTC Futures Open Interest

Despite two failed attempts (so far) of closing a significant time frame above the all-time high, futures open interest remains elevated and is as high as it’s ever been. As of Friday evening, there was an aggregate of $30.39 billion of futures positions open across all major exchanges — an increase of $4.78 billion, or over 18.5%, implying strong conviction amongst traders and investors in the overall price movement of bitcoin.

In broader industry news, it was revealed that BlackRock plans to invest in spot Bitcoin ETFs for its Global Allocation Fund, including its own iShares Bitcoin Trust (IBIT) and those from other issuers.

This move signifies a significant step in legitimizing Bitcoin as an investment asset within traditional financial institutions. The BlackRock Global Allocation Fund, established in 1989, manages assets totaling $17.8 billion as of March 7, 2024.

The company’s interest in spot Bitcoin ETFs comes shortly after its submission of a similar filing update for another fund, the Strategic Income Opportunities Fund. BlackRock’s IBIT fund is now holding $13 billion in assets, highlighting increasing institutional interest in Bitcoin.

Bitcoin Exchange Balance

Lastly, it’s crucial to consider the bitcoin balance on exchanges, a significant metric indicating market sentiment. Notably, the chart visually illustrates a consistent decrease in bitcoin held on cryptocurrency exchanges alongside the sustained upward movement in price.

This trend suggests a bullish outlook for bitcoin’s trajectory, as it indicates investors and traders are increasingly opting to hold their bitcoin for the long term by moving it off exchanges. With reduced supply available on exchanges, bitcoin’s demand remains robust, underlining its enduring appeal and potential for further growth.

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