Bitcoin (BTC) price forecast: $75k Rebound Begins as Whales Flip Bullish

Price Insights:

Bitcoin (BTC) price rebounded 9% within the daily timeframe on March 20, peaking at $67,857 after the US Fed announced a third consecutive rate pause. On-chain data trends shows that BTC whales have started buying again after a week look market pullback.

Will the ongoing recovery phase send BTC price above $75,000 before the halving ?

Bitcoin Whales have Started Buying Again

Despite higher-than-expected inflation figures last month, the US Fed announced a third-consecutive rate pause at the last FOMC meeting on March 2024. This has sparked bullish reaction across major risk assets markets including the cryptocurrency sector.

Within 24 hours of the Fed rate decision announced around 2 pm ET on March 20, BTC price races into an instant 9% rebound peaking at $68,000 within the daily timeframe. On-chain data shows that US-base whale investors have played a pivotal part in the ongoing BTC price recovery phase.

Cryptoquant’s Coinbase premium index tracks the level of buying activity among US-based institutional investor trading on Coinbase pro.

Essentially, it compares the current BTC prices on Coinbase pro against the price quoted on Binance. When Bitcoin price is trading at a premium on Coinbase, it signals that intense market demand among whales investors, and viceversa.

The chart above shows that the Coinbase Premium Index for Bitcoin surged to a 7-day peak of 0.026% on March 20. This signals that the US-based whales swung into action and started buying more BTC following the positive Fed rate announcement.

Strategic investors consider it bullish signal when whales tune up their buying activity. Firstly, it increased market liquidity and their outsized demand also of the drives up prices.

A closer look at the chart also shows that Bitcoin price has often entered a major upswing when the Coinbase premium has swung into positive values after multiple days in recess.

If this rare market trend re-occurs, bull could capitalize on the ongoing rebound phase to drive the rally towards 200%

Bitcoin Price Forecast: Bears could mount roadblock at $69,000

Bitcoin has witnessed increased whale demand since the Fed rate pause announcement, which could potentially drive BTC price toward $75,000 if sustained.

However,  the current Bitcoin liquidation map compiled by Coinglass shows that the bears could mount a significant resistance at the $69,000.

As seen above, the bears stand to lose over $1 billion in short liquidations if BTC price breaks above that $69,000. However, the flat lines after that range suggests that Bitcoin face minimal resistance if it advance above $70,000.

In the even of other market downturn, the BTC bull can count on the $65,000 support in the near-term.