Bitcoin Expected to Face Resistance at $66.9k Before Halving, Analyst Suggests

Bitcoin’s recent drop below $63,000 has provided a clearer picture of the support and resistance levels to monitor ahead of the upcoming halving next month. BTC analyst Ali-Charts has identified three key support levels based on Glassnode data: $61,100, $56,685, and $51,530. These levels are expected to act as cushions against further declines in the price of Bitcoin. On the other hand, resistance levels of $66,990 and $72,880 have emerged following BTC’s all-time high on March 14. CoinGecko data shows that Bitcoin reached a peak of $73,737, driven by significant inflows into US spot Bitcoin ETF products over several weeks. However, on March 19, Bitcoin experienced a 6% downturn, which was accompanied by the first net outflow in a single day since late last month. While BlackRock’s BTC ETF saw inflows of $451 million, there was a sell-off of $642 million worth of Grayscale’s GBTC. This resulted in a net outflow of $154 million, with only eight other issuers attracting less than $20 million each on that day. Notably, Franklin Templeton, Invesco Galaxy, and WisdomTree funds did not see any net inflows. Despite this deviation from the previous trend of consecutive inflows, spot BTC ETFs have still accumulated 4.2% of Bitcoin’s available supply in three months of trading. Currently, nine funds have over $20 billion in assets under management, with BlackRock leading the pack with more than 203,000 BTC valued at nearly $16 billion. Experts like Eric Balchunas predict that the demand for spot BTC ETFs will increase as more institutional players allocate capital and support exposure to the asset class. This is evident from the decision of Wall Street asset managers like Bank of America’s Merrill Lynch and Wells Fargo to include spot Bitcoin ETFs in their offerings, reversing their earlier stance.