Bitcoin (BTC) showed optimistic signs on Friday, continuing on the recent gains in the last few days amid the ceasefire between the U.S.-Israel and Iran. The price managed to hold above the $72k threshold and was trading at $72,214, up 1.54% in the last 24 hours at the time of writing, as per CMC.
Data from the US consumer price index (CPI) is expected to be a major trigger on Friday. As a result of rising energy costs, March inflation is projected to be 3.3% year-on-year. Risk assets like bitcoin may be hit hard if inflation numbers show a sharp increase in the value of the US dollar.
The Bollinger bands, a technical indicator of market volatility, are now at their smallest point since the beginning of 2024. Crypto expert Eric Crown claims that similar price ranges in the past have resulted in a 40% move in either direction. Bitcoin’s price has been relatively stable between $63,000 and $75,000 since early February. Thus, a major move in either direction is on the cards.
Tough Fight Ahead
The liquidation heatmap from CoinGlass shows that around $200 million worth of long positions betting on the breakout will be liquidated if the price of bitcoin falls below $70,000 in the near future, while a breakout above $75,000 would trap short-term traders who need to buy at market prices to cover their positions, triggering upside momentum.
In its greatest day since early March, when the US-Iran battle began to kick into high gear, investors poured $269.3 million into BlackRock’s iShares Bitcoin Trust on Thursday. The net inflow of $358.1 million among the 12 US spot Bitcoin ETFs was a result of these inflows, which helped to terminate two days of net outflows.
However, according to the numbers, Bitcoin holders who kept their holdings for more than seven years made a profit of $271 million by selling their BTC. In January, there was a similar surge of “OG whale” sellers that caused the price of Bitcoin to plummet since the market was unstable and there wasn’t enough demand from buyers.