Big Bitcoin Price Swings Wipeout Traders as ETF Buyers Battle Profit-taking Sellers – Where is BTC Headed Next?

Joel Frank
Last updated: | 2 min read
Bitcoin Price

The Bitcoin (BTC) price saw big swings on Friday, with droves of traders on both the bullish and bearish sides getting their positions wiped out as US spot Bitcoin ETF buyers continue to battle against profit-taking sellers.

BTC began Friday’s session above $71,000 before selling off sharply during Asian trading session.

Having dropped to as low as $65,500 the Bitcoin price abruptly rallied back to $70,500 during US trading hours.

It was last trading around $68,000, with leveraged futures positions worth $200 million having been wiped out, as per coinglass.com.

This marked the most punishing day for the bulls since March 4, when long positions worth $244 million were liquidated.

Since printing fresh record highs near $74,000 on Thursday, Bitcoin has lost bullish momentum.

Profit-takers appear to have taken control of the market despite still elevated demand for spot Bitcoin ETFs.

Profits At Absurd Levels, On-Chain Analysis Reveals


As per CryptoCon, a 30-day moving average of a widely followed on-chain metric called the Realized Profit/Loss Ratio is at “absurd” levels.

CryptoCon was keen to point out that this doesn’t mean the market is necessarily close to topping.

But it does suggest that investors sitting on big profits are likely getting “antsy to sell”.

At current levels of around $68,000, the Bitcoin price is up over 60% year-to-date.

Massive spot Bitcoin ETF inflows have been the main driver of the rally. And they have been accelerating recently.

As per a JP Morgan research note, weekly inflows were the largest this week since their January launch.

Despite profit-taking and a 7.5% pullback from highs, it’s no surprise that many are still confident of Bitcoin’s bullish stance.

That’s despite the cryptocurrency hitting a new all-time before its April halving event, rather than after.

Where to Next for the Bitcoin Price?


In past Bitcoin bull markets, the price commonly reversed around 30% lower from local highs.

As recently as January, Bitcoin dipped from the at the time yearly high of around $49,000 to as low as $38,500.

That suggests that Bitcoin’s latest pullback potentially has legs. A retest of $50,000 isn’t out of the question, based on historical comparisons.

But ETFs may have changed the game.

Major institutional investors entering the Bitcoin market for the first time, with the knowledge of its volatility but also potential upside, are likely to be less price sensitive than past cohorts of Bitcoin investors.

They are also likely to have a “buy-the-dip” mentality that may help cushion BTC price declines.

Any BTC price dips now may struggle to extend beyond 10-15%.

That suggests $60,000 could be a near-term price floor.

The Bitcoin Price could dip to the low $60,000s, but could then fly higher towards $100,000. Source: TradingView
The Bitcoin Price could dip to the low $60,000s, but could then fly higher towards $100,000. Source: TradingView

$74,000 could easily be the pre-halving high. But that could set the stage for a breakout to fresh record levels later in the year and a challenge of $100,000.