- The Bitcoin price is poised for 4.6% before challenging the key support trendline of a classic bearish pattern inverted flag.
- Morgan Stanley submitted an updated S-1 filing for a spot Bitcoin ETF, adding Fidelity as a custodian alongside Coinbase Custody and BNY Mellon.
- On-chain data shows that the amount of Bitcoin wallets with more than 100 coins has witnessed an increase of +753 in the last three months.
The pioneer cryptocurrency Bitcoin extended its bearish pullback on Thursday to reach an intraday low of $68,800. However, the sellers struggled to hold those lower prices and BTC reverted to $70,359 with a long-tail rejection. The renewed buying pressure can be linked to persistent institutional interest as Morgan Stanley recently submitted an amended S-1 filing for its proposed Morgan Stanley Bitcoin Trust. In addition, the number of BTC whale wallet has witnessed a notable surge, bolstering the recovery narrative in price.
Morgan Stanley’s Bitcoin ETF Filing Boosts Market Confidence
On March 19th, the Bitcoin price plunged to a low of $68,800 before reverting to its current trading value of $70,359. The initial downtick came as a follow-up to yesterday’s sell-off in the broader market as the Federal Reserve held rates steady while warning that energy costs bolstered inflation forecasts.
However, Bitcoin’s market value demonstrated resilience in the last trading sessions, moving towards the $70,000 level again amid subdued headlines. Activity from established financial institutions and changes in the number of large-holders played a part in the movement.
Morgan Stanley, one of the world’s major investment banks, recently filed an updated S-1 registration statement with the U.S. Securities and Exchange Commission for its proposed spot Bitcoin exchange-traded fund. The amendment includes Fidelity as an additional custodian in addition to previously named providers such as Coinbase Custody and BNY Mellon. The filing confirms the fund, which is named the Morgan Stanley Bitcoin Trust, will trade on the NYSE Arca exchange under the ticker symbol MSBT, on any eventual approval and launch.
On-chain data from analytics platform Santiment shows strong interest from major players despite broader market uncertainty. In the past three months, the number of Bitcoin addresses with 100 BTC or more in their control grew by 753, which is a 3.9% increase in this class of large wallets. The total market capitalization of Bitcoin shrank by 20.2% during that time.
These developments support the long-term growth of Bitcoin price while the short-term volatility continued to hurt market sentiment.
Flag Pattern Hints Bitcoin Price Correction to $56,000
In the last three days, the BTC price has plunged from $76,000 to $70,000 current trading value, projecting an intraday loss of 7.85%. Our deeper analysis of Bitcoin’s outlook shows that the reversal is positioned at the resistance trendline of an inverted flag pattern.
As shown in the chart below, the chart setup is characterized by a long-descending trendline indicating a dominating bear trend, followed by a temporary recovery within two trendlines to replenish bearish momentum.
If the pattern holds true, the Bitcoin price could plunge another 4.6% down to challenge the bottom support. A potential breakdown will accelerate the selling pressure and set an extended correction to the $56,000 mark to test a major support.
On the contrary, a bullish breakout from the $76,000 ceiling could push the Bitcoin price out of the long-awaited correction trend within the formation of a channel pattern.
