Bitcoin was on the verge of breaking below $61,000 on March 20, with analysts cautioning that its support levels might not hold.

TradingView data showed a decline in Bitcoin's price, reaching a low of $60,760 on Bitstamp.

With a 17.5% drop from its peak prices, the BTC/USD pair faced downward pressure due to various factors, including withdrawals from U.S.-based spot Bitcoin ETFs and the anticipated Federal Reserve interest rate decision on March 20.

The focus is largely on Fed Chair Jerome Powell's comments following the Federal Open Market Committee (FOMC) meeting, with expectations around the meeting's outcomes already set.

The Kobeissi Letter, in its analysis shared on X (previously Twitter), noted, “With the Fed meeting less than 24 hours away, it’s unlikely the Fed changes rates tomorrow. However, all eyes will be on guidance after the recent events. We maintain the view that it is far too soon to pivot.”

CME Group's FedWatch Tool indicated a minimal 1% likelihood of a policy shift towards rate reductions on March 20, with a slightly higher 9.1% chance at the May FOMC meeting.

Spot Bitcoin ETFs experienced a second day of net withdrawals, according to data from the UK investment firm Farside.

Despite a slight reduction from the Grayscale Bitcoin Trust (GBTC) withdrawal peak of $642 million on March 19, the continued low influx into other ETF products resulted in disappointing performance.

Financial analyst Tedtalksmacro mentioned, “Almost $500M USD has flowed out of spot BTC ETFs in the past two trading days. Traders taking a wait and see stance pre-FOMC

Sources:

https://cointelegraph.com/news/btc-price-dip-17-5-week-bitcoin-etf-net-outflows-near-500m

https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE

https://twitter.com/KobeissiLetter/status/1770267245303742643

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

https://farside.co.uk/?p=997

https://twitter.com/tedtalksmacro/status/1770297816138887223