Bitcoin (BTC) plunged to below $38,000 on March , giving upward all the gains it had made last week, which saw BTC/USD rally over $45,000.

BTC back below $40K equally oil soars

The losses appeared due, primarily, to selloffs across the gamble-on markets, led past the eighteen% ascent in international oil benchmark Brent crude to well-nigh $139 per butt early March 7, its highest level since 2008.

Nonetheless, Bitcoin's disability to offer a hedge against the ongoing market volatility also raised doubts over its "safe haven" status, with its correlation coefficient with Nasdaq Composite reaching 0.87 on Monday.

BTC/USD weekly cost chart featuring its correlation with Nasdaq and Gold. Source: TradingView

Conversely, Bitcoin's correlation with its top rival gold came to be minus 0.38, underscoring they accept been largely moving in contrary to one another during the ongoing market turmoil.

On one hand, Bitcoin's potential to continue its decline remains loftier amid the worsening geopolitical conflict between Russia and Ukraine and prospects of higher rate hikes in March.

However, some technical and on-chain indicators are flashing bullish on lower timeframes, suggesting a potential cost rebound towards $threescore,000 in the months ahead.

Multi-year ascending trendline support

If history repeats, Bitcoin's contempo reject to its multi-year ascending trendline support could fix the stage for a potential rebound toward the $sixty,000 resistance level.

BTC/USD weekly price chart featuring bear markets within technical patterns. Source: TradingView

Notably, BTC's trendline support constitutes a technical design called ascending triangle in conjugation with a horizontal resistance level to a higher place. This setup has been active since December 2020, with the lower level serving as an accumulation expanse and the upper level interim as a distribution expanse for traders.

Number of BTC whales on the rise

Elsewhere, on-chain data provided past CoinMetrics indicate that rich investors accept been purchasing Bitcoin well-nigh the same level.

For instance, the number of Bitcoin addresses that hold at least ane,000 BTC spiked from 2,127 on Feb. 27 to 2,266 on Feb. 28.

Bitcoin addresses with balance greater than 1K BTC. Source: CoinMetrics, Messari

In the same period, BTC's price climbed from virtually $38,000 to well-nigh $45,000. Equally of March six, the number of Bitcoin addresses was down to just 2,263 even equally BTC dropped below $38,000, suggesting rich investors decided to concur their Bitcoin tokens despite the interim downside sentiment.

Related: Digital gilt narrative valid equally long as MicroStrategy holds Bitcoin, says exec

Johal Miles, an independent market analyst, farther noted that the expanse between $33,000 and $38,000 has been a "loftier volume accumulation zone" for Bitcoin bulls, adding that it would be "tough for bears" to pull through the said range.

Bitcoin outflow trend intact

Information from crypto analytics service Santiment shows that the Bitcoin weekly outflow from exchanges has been positive 81% of all time since Oct 2021, fifty-fifty as BTC trades near its six-month low.

"Interestingly, 21 of the past 26 weeks saw BTC moving more off of exchanges than on to exchanges," Santiment tweeted on March 7, citing the BTC exchange flow residue chart attached below.

BTC exchange catamenia residual. Source: Santiment

More Bitcoin outflow from exchanges suggests investors are looking to concord for the longer term. Conversely, increasing Bitcoin inflows to exchanges shows the intention to merchandise BTC for other digital avails or fiat currencies.

BTC exchange reserve. Source: CryptoQuant

Overall, the amount of BTC on exchanges continues to subtract with less than 2.4 million BTC currently sitting on crypto exchanges, the everyman since September 2018, according to CryptoQuant.

The views and opinions expressed here are solely those of the author and practice not necessarily reflect the views of Cointelegraph.com. Every investment and trading movement involves risk, you should bear your own research when making a conclusion.