- There are 18 days until the Bitcoin halving, and BTC plummets 6% to retest $65K.
- Mad Money TV host Jim Cramer sparks the crypto community’s optimism.
- Grayscale’s GBTC outflows halt Bitcoin’s bull rally, but is BTC overbought?
The leading digital asset, Bitcoin, is facing a pullback on Tuesday, as BTC tumbled by 5% to trade briefly below $66,000. After hitting intraday lows at $65,855, it rebounded above $66,000, but a daily close below this key price threshold could send BTC retesting previously claimed supported clusters at $62,000 and $59,000. The $62K support levels were successfully triggered twice last month, on March 5 and 20, 2024.
Is Jim Cramer Actually Right This Time?
Amid the overall market volatility, alternative cryptocurrencies like Ether (ETH), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) took a plunge, with over 8% drops in the past 24 hours. Ironically, the notoriously wrong CNBC financial analyst Jim Cramer warned crypto enthusiasts on Twitter about BTC being in an extremely overbought condition on April Fool’s Day, remarking, “Better seller than buyer…”
Cramer, host of CNBC’s Mad Money, insisted that Bitcoin hasn’t been this overbought in a while. Judging by the technical charts, BTC’s Relative Strength Index (RSI) currently points to 35 on the 1-day charts, refuting this claim. Meanwhile, the four-hour chart suggested an oversold position at 21, but BTC’s sharp drop on April 2, 2024, took 200 million in liquidations regardless.
Bitcoin Retraces Over $8K Since All-Time High
Intriguingly, $163 million of the lump sum was liquidated in half an hour when Bitcoin sharply plummeted from $69.2K to $66.75K at 2 AM GMT. Bitcoin’s Derivatives data hints at a 70% hike in trading volume despite a slight decrease in Open Interest (OI). This confirms the narrative of heavy BTC sells on April 2, 2024.
On Spot markets, Bitcoin faces a $2 billion gap between bids and pending sells. This can partly be attributed to Grayscale’s GBTC outflows. The negative balance on Bitcoin’s exchange-traded fund (ETF) sheet on April 1, 2024, witnessed an $85.84 million cumulative BTC outflow. The investment giant is rumored to lose customers due to comparatively high management fees.
Accordingly, most BTC outflows are ascribed to Grayscale’s clients exiting their GBTC positions, topping $300 million on April Fool’s Day. Despite Cramer’s tweet planting optimism among crypto aficionados on X, BTC plunged 6% since his bearish declaration.
On the Flipside
- Among $200 million in liquidated Derivatives positions for Bitcoin, $43.5M included liquidated shorts, despite the sharp price dip.
- Jim Cramer is notoriously known for his predictions having an inverse effect on the crypto markets. On March 5, 2024, he mocked Buying Bitcoin with a puppy meme, resulting in a BTC bull run to $68,800 hours later.
Why This Matters
Jim Cramer’s statement gives a better understanding of retail sentiment towards Bitcoin, while Bitcoin ETF-related outflows tend to affect Bitcoin’s price.
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