Bitcoin Recovers Above $83,000 as Key Metrics Signal Undervaluation Despite Looming Tariffs
Bitcoin (BTC) has rebounded to around $83,100, marking an increase of over 1.4% in the past 24 hours, after a weekend dip that saw the price briefly fall to $81,222 on March 31. This recovery comes amidst strong underlying investor confidence, highlighted by several key metrics suggesting that Bitcoin BTC/USD is currently trading at a discount, even as the market braces for potential volatility from upcoming US trade tariffs.
Four Key Metrics Indicate Bitcoin is Trading at a Discount
Though there was a 6.8% correction between March 28 and March 31, which sold $230 million in bullish Bitcoin futures bets, four important signals point to long-term investors not being bothered and seeing the present price levels as an opportunity.
First, on March 28 Bitcoin’s mining hashrate peaked at 856.2 million terahashes per second, an all-time high. This shows the strong security of the network and the absence of panic selling among miners since formerly price declines were linked to miners being obliged to sell.
Second, on March 30 the 7-day average of net transfers from miners to exchanges came at a low of BTC 125, much below the roughly BTC 450 mined daily. This emphasizes even more the absence of pressure on miners to sell their interests.
Thirdly, hitting BTC 2.64 million on March 30, cryptocurrencies exchange reserves have plunged to their lowest levels in almost six years. This lack of Bitcoin ready for quick trading usually indicates that investors are more likely to hang onto their investments.
Last but not least, on March 27 and March 28 near-zero net withdrawals in US spot Bitcoin exchange-traded funds (ETFs) show institutional investors’ ongoing confidence even despite the recent market decline.
BTC Whale Accumulation Mirrors 2020 Bull Run Signal
Adding to the good feeling, on-chain analyst Mignolet has noted that “market-leading” whale addresses between 1,000 and 10,000 BTC are showing accumulating behavior consistent with trends seen throughout the 2020 bull cycle. These big companies seem to be setting themselves for a possible future rebound since they have showed resistance to market volatility and have been fast accumulating Bitcoin during price declines.
BTC/USD Technical Analysis: Bitcoin Eyes $84,000 After Closing CME Gap
Rising to cover the CME futures gap created over the weekend, Bitcoin surged as the New York trading day started on March 31. Usually acting as a brief positive signal, this closing of the gap Immediately of interest for Bitcoin is turning the $84,000 level into support. Reaching this level successfully could drive the price over the 50-day exponential moving average, thereby supporting a brief surge towards the supply zone between $86,700 and $88,700.
Prolonged consolidation below $84,000, however, may enhance its resistance properties, thereby guiding more declines towards areas of negative liquidity in the $78,200 to $76,560 zone. Traders are also closely observing forthcoming US economic events like JOLTs Job Openings (April 1), the implementation of US tariffs (April 2), non-farm payrolls and a speech by Federal Reserve Chair Jerome Powell (April 4), which can cause market volatility.
Bitcoin Price Prediction: Underlying Strength Despite Economic Uncertainty
Notwithstanding the most recent price adjustment and the approaching “Liberation Day” taxes, Bitcoin’s fundamental data point to great investor confidence and long-term holding attitude. Coupled with the closure of the CME gap, the accumulation of big whale entities and the recovery over $83,000 point to possible further upward momentum should the $84,000 resistance be broken. Nevertheless, the uncertain economic situation and the possible influence of the forthcoming tariffs make the market still apprehensive. Traders should keep a careful eye on the $84,000 critical level for resistance and the $81,000-$80,000 region for short term support.
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