Bitcoin dips sharply after crossing $71,000 in US trade hours

Crypto market overview: Bitcoin crossed the $71,000 mark in the US trade hours on the last eve of March, however, a strong dip in the BTC chart was witnessed in the early trade on Monday due to strong profit booking after yesterday’s gain. The leading cryptocurrency dipped to $69,000 from $71,000, and currently trading at $69,654.51, recovering from the dip.

Ethereum also followed a similar trajectory and currently trades 2.3 per cent lower at $3,547.50. Bitcoin Cash, Ton Coin, and Solana were among one of the top gainers in the last 24 hours. 

The Crypto Fear and Greed Index leaned further towards the greed side of the index as we entered the halving month, leading to positive momentum in the market. 

Image credit: Alternative.me 

Over the weekend the market remained relatively bullish with ETH leading the charge over BTC. Talking about the crypto market momentum with Republic Business, the CoinDCX Research Team said, “The crypto markets continued to climb over the weekend, as overall market capitalisation hit its highest point in the last 15 days. BTC was rangebound with an upward bias, trading between $70,000 and $71,000.” 

CoinDCX believes that the key support levels for BTC are around $69,000, $65,550, and $62,000, with resistance at $71,400 and $72,700. For ETH, support levels include $3425, $3300, and $3200, while resistance is at $3650, $3870, and $4070. 

Sharing the crucial resistance level for BTC, CoinSwitch Venture’s Investment Lead Parth Chaturvedi said, “For BTC to continue its upward march, it will have to break the crucial resistance of $71,500, which may open strong possibilities for BTC to cross $75,000. Simultaneously, ETH continued its upward price performance over the weekend.” 

Ethereum’s strong price action

While ETH is experiencing an overall positive price action, its liquid supply seems to be declining. Citing Glassnode data, Chaturvedi said, “Just 11 per cent of ETH’s total supply is currently available for active trading, down from 15.8 per cent same time last year. However, given the investor sentiment and whale accumulation pattern, this has only boosted ETH’s price by over 50 per cent since the beginning of 2024.” 

On the other hand, DOGE emerged as one of the biggest gainers in the last 7 days with gains of over 25 per cent. Another dog-themed meme coin entered the meme coin big leagues over the weekend. Dogwifhat has become the third-largest meme coin with over 60 per cent in weekly gains.

Citing Bitcoin’s attempt to break past the 71,000 level as a continuous tug of war, Shivam Thakral, CEO of BuyUcoin, said, “Since last week, Bitcoin has been trying to break the $71500 resistance only to fall back to the $70,000 level. An important level to hold for the largest cryptocurrency is the support of $69,000, failure to do so might push it to $65,000. It would be interesting to see how the Bitcoin price action unfolds this halving with just 22 days left roughly for the 4th Bitcoin halving.”

Altcoin rally continues 

Underlining the strong altcoin rally, Vikram Subburaj, CEO, Giottus said, “Top altcoins have rallied well today with Ethereum ($3,600) and Solana ($200) reclaiming key levels. We anticipate Bitcoin and key altcoins to have a strong April before a likely pullback in May. To continue its momentum, BTC should retest its high at $73,000 and enter price discovery mode. Key upward targets for altcoins: Ethereum ($3,700), BNB ($620), Solana ($210), XRP ($0.65), Cardano ($0.67), and Avalanche ($58).” 

Edul Patel, CEO of Mudrex said, “Bitcoin trading volume has increased by about 19 per cent in the past day, with over $20 billion worth of Bitcoin traded during this period. Bitcoin's next resistance level is expected at $71,781, with the next support level at $70,708. Ethereum, however, has been experiencing consistent buying pressure, which continued in the last 24 hours. Overall, the crypto market remains in an extremely greedy state.”