Bitcoin attempted to test the $68,000 support level on April 1 as the opening of Wall Street triggered a period of weakness. Traders monitored support levels closely amid early market weakness, with BTC price losses exceeding 4.5% at the start of Q2.

Despite the return of institutional flows, Bitcoin failed to gain further upside momentum, even though there were no significant outflows from the Grayscale Bitcoin Trust (GBTC). Popular trader Daan Crypto Trades speculated that the Easter holiday period might have influenced market dynamics, noting that Grayscale did not make any notable transactions during that time.

Daan Crypto Trades also observed a slowdown in GBTC outflows, with only $104 million leaving on the final trading day of Q1, a significant decrease from the record $642 million seen on March 18. With BTC/USD trading at its lowest levels since March 25, traders remained cautious. Some, like Daan Crypto Trades and fellow trader Skew, emphasized the importance of the 200-period moving average on four-hour timeframes, indicating a defensive stance until the price climbs back above $70,000.

QCP Capital, in its "New York Color" update, warned of increased downward pressure in the crypto spot markets, citing significant interest in selling calls and buying puts in both BTC and ETH over the past 24 hours.

Analysis from trading resource Material Indicators suggested that "smart money" was targeting a buy-the-dip strategy at around $62,000, based on examination of exchange order book liquidity on Binance. Despite uncertainty in the near term, there is strong belief in new all-time highs post-halving, with institutional buyers willing to dollar-cost average into positions given the high conviction for future price appreciation.