Bitcoin Accumulated by Whales, S&P 500 Drops 4.2%

Bitcoin (BTC) bulls attempted to push the price above $85,000, but bears managed to hold their ground. A minor positive development is that larger investors appear to be accumulating at lower levels. Research firm Santiment noted that wallets holding 10 BTC or more have acquired approximately 5,000 Bitcoin since March 3. The researchers suggested that if this buying trend by large players continues, the second half of March could see a significant improvement in Bitcoin's performance.

However, not all analysts are optimistic about Bitcoin's near-term prospects. Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, predicted that Bitcoin could retest levels as low as $78,000 or even below $75,000. Hayes warned that if Bitcoin's price drops into the $70,000 to $75,000 range, the market could experience volatile price action due to a large amount of open interest stuck in that zone.

Meanwhile, short-term investor sentiment remains bearish. According to CoinShares data, cryptocurrency exchange-traded products (ETPs) witnessed $876 million in outflows last week, bringing the four-week total outflows to $4.75 billion. Bitcoin ETPs accounted for the majority of these outflows at $756 million.

The S&P 500 Index (SPX) turned down from the 20-day exponential moving average (5,900) on March 3 and broke below the 5,773 support on March 6, completing a double-top pattern. The index bounced off the 5,670 level on March 7, but bears successfully defended the breakdown level of 5,773. The index turned down and broke below the 5,670 support on March 10, opening the doors for a potential fall to 5,400. Buyers will need to push and sustain the price above 5,773 to indicate solid demand at lower levels, which could then lead to a rise to the 20-day EMA, expected to act as strong resistance.

The US Dollar Index (DXY) turned down sharply on March 3 and continued lower, breaking below the 105.42 support on March 5. The fall below