Data from Cointelegraph Markets and TradingView show that the downtrend that began on March 22 and continued through Tuesday retested the $54,000 support level for the second time this week.
4 hour chart BTC/USDT. Source: TradingView
Coinshares data shows that BTC remains the asset of choice for institutional investors, while the sector as a whole continues to see significant growth, with $57 billion in assets currently managed by institutional investors.
The upward trend remains intact despite the recent downturn.
While inexperienced traders and newcomers to cryptocurrencies may see the recent drop as a sign of a bearish reversal, Cointelegraph Markets analyst Michel van de Poppe sees the pullback as a bullish development for bitcoin.
This looks like a healthy correction for #Bitcoin to me.
While we have 49-51K, I expect a continuation towards 68K.
We still expect a huge spike in #altcoins from April. pic.twitter.com/WxaYQZ7IrE
– Michelle van de Poppe (@CryptoMichNL) 23. March 2021
Data from CryptoQuant, an on-chain data provider, shows that in the early hours of the 23rd. In March, a total of 14,600 BTC left Coinbase. Traders generally view BTC exits as a bullish development, as the perception of a supply shortage is a popular bullish narrative among crypto analysts.
Release of BTC from Coinbase Pro. Source: CryptoQuant
While it is not possible to confirm that the outflow was due to hoarding, analysis of the Whale charts shows that there was strong hoarding at the $55,000 level, but researchers warn that if the current support level cannot be reached, the next strong support level will be found at $47,438.
Big Wallet BTC inflow. Source: Mapping whales
Analysts at Jarvis Labs took a slightly different view, suggesting that traders need to look beyond general stock market flows to understand BTC’s daily movements.
According to Ben Lilly, co-founder of Jarvis Labs, it’s important to see which portfolio is active in shared streams.
Jarvis Labs tracks a wallet it calls Pablo, and analysis shows that this wallet has historically been linked to declining bitcoin price action. The last time Pablo moved BTC was during a sharp market correction in late February.
bitcoin transactions from Pablo’s wallet. Source: Jarvis Laboratories.
More recently, Jarvis’ team noted that Pablo was in 4th place. March began to hover around 15,000 BTC, indicating an imminent price decline. The break-in occurred on the 14th. March, when bitcoin climbed above $60,000 in search of a new record.
BTC/USD Perpetual Swap Contract. Source: Jarvis Laboratories.
This behavior has formed the final phase of the recent short-term downtrend, coinciding with the impending expiration of key options. This is the kind of thing that could pave the way to greater heights in the future. We remain optimistic for April, which is confirmed by general market flows.
Selected altcoins rise while bitcoin falls back
Despite the drop in bitcoin prices, a handful of altcoins have been able to reach new highs. According to Cointelegraph, the Coinbase effect has seen the prices of Ankr (ANKR), Curve DAO Token (CRV) and Storj (STORJ) increase by 50% to 100%, and trading on Coinbase Pro will begin on the 25th. Early March.
CRV/USDT vs ANKR/USDT vs STORJ/USDT 1 day chart. Source: TradingView
Theta (THETA) and Theta Fuel (TFUEL) also continued their unstoppable rise on Tuesday after it was announced that Sierra Ventures, Heuristic Capital, VR Fund and GFR Fund have invested more than $100 million in Theta.
Following the announcement, Theta made a 40% jump to a new high of $14.21 and TFUEL climbed 30% to a new record high of $0.53.
The total market capitalization of cryptocurrencies is currently $1.69 trillion and bitcoin dominates with 59.8%.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. You should do your own research before making a decision.
frequently asked questions
Will the price of BTC fall after it halves?
This means that the value of bitcoin increases after each snap. Historically, bitcoin experiences a rise after every six months. When supply falls, stimulating demand, the price rises. However, this upward trend is not immediate.
Why has the price of bitcoins dropped so much?
1. Funding Stress. … So there was always the risk of a reset of funding. According to data source Coinalyze, the price drop has so far eliminated more than $300 million in bitcoin longs – about 30 percent of the total $1.33 billion in liquid longs in the crypto market.
Will bitcoin rise or fall in 2020?
Bloomberg Research 2020 Bitcoin Report Bloomberg Research recently released a new report on the future of bitcoin as an investment. According to a major media center and financial terminal, bitcoin is expected to reach $12,000 and $20,000 by the end of 2020.
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