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You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/bitcoins-price-retreat-causes-and-market-outlook/" data-wpel-link="internal">Bitcoin’s Price Retreat: Causes and Market Outlook</a> 
Cryptocurrency markets make investors quickly accustomed to price peaks, and subsequent pullbacks trigger pessimism. Today, the drop to the once unimaginable level of $65,000 has somewhat dampened the excitement among BTC investors. So, what caused the downturn and what will happen now? 
<h2 style="text-align: justify" id="bitcoin-btc">Bitcoin (BTC)</h2> 
At the time of writing, the BTC price fell from $70,600 back to $67,800. The battle to stay above $68,000 is commendable, but with the daily low at $65,600, investors have more reason to be cautious. High volatility necessitates even more caution from <a href="https://coin-turk.com/ripple-xrp-ceosundan-bitcoin-destekcilerini-kizdiracak-aciklamalar" data-wpel-link="internal">altcoin</a> investors. 
<img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-328808 aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/03/BTC-fonlama.webp" alt="" width="1183" height="710"> 
According to a report by IntoTheBlock, the crypto market is “overheated.” We have long been saying that BTC price has been lingering in extreme territories according to various metrics. This made a price correction inevitable, as historical data suggested. Indeed, a rapid decline from $73,000 to $65,600 occurred. 
<a href="https://en.coin-turk.com/chinas-cryptocurrency-conundrum-a-historical-view-and-expectations-for-the-future/" data-wpel-link="internal">Crypto</a> expert TOBTC, CryptoQuant analysts, and many others had been saying that this overheated market would lead to a downturn. IntoTheBlock wrote in their latest On-chain Insights newsletter; 
<blockquote> 
 “We see that the amount paid by <a href="https://en.coin-turk.com/bank-failures-abound-is-another-looming-what-implications-for-bitcoin/" data-wpel-link="internal">Bitcoin</a> perpetual swap buyers to short sellers is at its highest level since October 2021. We observed that the funding rates on <a href="https://en.coin-turk.com/binance-faces-lawsuit-impact-on-bitcoin-and-crypto-investors/" data-wpel-link="internal">Binance</a> and Bybit reached levels of %0.06 and %0.09 paid every eight hours yesterday. All these are the result of excessive long positions. Those wanting to long Bitcoin are facing costs between %93 and %168 annually.” 
</blockquote> 
<h2 style="text-align: justify" id="has-the-crypto-rally-ended">Has the Crypto Rally Ended?</h2> 
According to Coinglass data, the size of Bitcoin open positions has reached $35.55 billion. Excessive demand triggered by Spot Bitcoin ETF entries also prompted excessive leverage in the DeFi sector. Considering the top 20 cryptocurrencies provided an average return of %103 over three months, investors reaching %70 profitability are suggesting one thing. Sell. 
<img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-328809 aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/03/btc-acik-pozisyonlar.png" alt="" width="2670" height="890"> 
Unrealized BTC profitability is at a three-year high, and data from IntoTheBlock indicates that %86 of BTC investors are in profit at current prices, suggesting that profit-taking could continue. This could mean a continued downturn for BTC and, indirectly, altcoins. 
<img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-328810 aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/03/btc-karlilik.jpeg" alt="" width="1200" height="756"> 
As always said, there is no perpetual rise or fall in cryptocurrencies, and corrections of up to 30% are normal even in bull markets, especially with the Federal Reserve’s hawkish stance on interest rates. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/bitcoins-price-retreat-causes-and-market-outlook/" data-wpel-link="internal">Bitcoin’s Price Retreat: Causes and Market Outlook</a></h5>

Bitcoin’s Price Retreat: Causes and Market Outlook

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