Bitcoin Price Rebounds as Institutions and Possible State Actor Increase BTC Buying

Bitcoin has dropped by 6.89% in the last 24 hours and, as of 10:16 GMT+3, was trading at $68,422. However, buying volumes were on the rise, and the price was making a pullback. That indicates that the dip was temporary, and the overall trend is up. 

Mr. 100 Buys 810 Bitcoin

The temporal nature of the dip witnessed in the last 24 hours is evident in how major players still buy Bitcoin aggressively. One of the big players buying the dip at this point is an entity that has come to be known in crypto circles as Mr. 100. Speculation is rife that Mr. 100 is a Country that has been buying Bitcoin in batches of 100 or more since November. 

“Mr. 100” bought 810 of today’s 900 newly mined Bitcoin, so the ETFs have to find other willing sellers👇 pic.twitter.com/agbXIjwl8v

— HODL15Capital 🇺🇸 (@HODL15Capital) March 14, 2024

During the price dip of the last 24 hours, Mr. 100 has bought 810 Bitcoin. That’s almost all the Bitcoin mined in the last 24 hours, as miners only put 900 Bitcoin into circulation daily. This means other investors ranging from retail to ETFs have to scramble for the 90 BTC left from the day’s mined supply. It indicates the growing scarcity of Bitcoin at a time when the demand is coming from all quarters – retail, institutional, and government. 

ETF Inflows Remain Net Positive 

Institutional demand for demand remains as strong as it has been all through as well. Yesterday, the net inflows of Bitcoin into ETFs remained as strong as they have been through the last two months. Total Bitcoin ETF inflows stood at $132 million. 

Yesterday the Spot #Bitcoin ETF net inflows were significantly lower than usual. pic.twitter.com/db5ohnhPXZ

— Mister Crypto (@misterrcrypto) March 15, 2024

All this points to the growing demand for Bitcoin weighed against an increasingly tight supply. The 8% dip in the last 24 hours is likely due to short-term trading dynamics. When Bitcoin was at $72k, there was a build of long positions at around $66k and a few short positions at $74k. The market has corrected this imbalance by filling the longs at the $66k to $68k range before what seems to be a continuation of the upside momentum it has built up so far. 

Essentially, the overall momentum in Bitcoin is bullish, driven mainly by the big players such as the BlackRock ETF and Mr. 100, who is buying Bitcoin in batches of 100 a day and has been doing so for months. 

Demand And Supply Dynamics Set To Get More Bullish

With the halving coming up in April, which is set to shrink the supply entering circulation significantly, the price dynamics are set to drive the price to even higher unprecedented prices. Some analysts even project that Bitcoin could be $1 million a coin this year. 

The Bitcoin dip in the last 24 hours is mainly due to an imbalance between longs and shorts and has no impact on the underlying demand for Bitcoin, which remains more robust than ever.

Bitcoin Bounces Off A Pullback to $66,829, A Signal To Bullish Continuation

While Bitcoin dipped in the last 24 hours to a low of $66,800, the bounce off that price level suggests that Bitcoin remains in the bullish channel it has traded in for weeks.

If Bitcoin continues to gain momentum off $66,800, which is now a key support level as Bitcoin forms higher lows, then the next key level to watch will be $73,661. This is a key resistance level where it failed yesterday, leading to a correction. If Bitcoin bulls push Bitcoin through the $73,668 resistance, then $80k or more could be within reach in the day. 

However, two scenarios could play out if bulls fail to break the $73,668 resistance. The first is a possible consolidation between $73,668 and $66,800. 

On the other hand, if short sellers gain enough momentum and push Bitcoin through the $66,800 support, then prices below $65k could be hit in the day. 

Bitcoin Price Prediction –  Why Bitcoin Could Make A Surprise Run To $80k Today

While any of the scenarios above could play out today, the case for a solid bullish breakout to $80k looks highly likely. One of the key triggers to such a rally will be the declining supply of Bitcoin relative to demand. 

While demand for Bitcoin is on a sharp increase, the supply remains tight. The fact that some buyers, such as Mr. 100, are buying up all the mined supply in the day means there is a growing divergence between demand and supply, and simple economics means the upside breakout could be a violent one.