On March 23, the bears managed to push the price of Bitcoin (BTC) below the USD 54,000 support level as various data on the chain suggests that whale wallets have started slowing purchases and shifting risk to retail investors .
Data from Cointelegraph Markets and TradingView show that the downtrend, which began on March 22nd and continued through Tuesday, re-tested the $ 54,000 support level for the second time this week.
Data from Coinshares shows that BTC continues to be the capital of choice for institutional investors, while the sector as a whole continues to see significant growth as institutions currently manage $ 57 billion in assets.
The uptrend remains intact despite the recent pullback
While inexperienced traders and those new to cryptocurrency might view the recent downturn as a sign of a bearish reversal, Cointelegraph Markets analyst Michaël van de Poppe sees the retreat as bullish development for Bitcoin.
To me, this looks like a healthy fix for #Bitcoin.
As long as it holds $ 49-51,000, I expect we will see a continuation towards $ 68,000.
I still expect a massive increase in #altcoins from April. pic.twitter.com/WxaYQZ7IrE
– Michaël van de Poppe (@CryptoMichNL), March 23, 2021
Data from CryptoQuant, an on-chain data provider, shows a total of 14,600 BTC left Coinbase in the early hours of March 23rd. Traders usually view BTC outflows as a bullish development, as the perception of a supply shortage is a popular bullish narrative among crypto experts.
While there is no way to confirm that the runoff was the result of whale accumulation, analysis by Whalemap shows that there was heavy accumulation at $ 55,000. However, the researchers cautioned that should the current support level fail, the next strong support level should be found at $ 47,438.
Jarvis Labs’ analysts took a slightly different point of view, suggesting that traders look at more than just general AC currents to understand the daily movements of BTC.
According to Ben Lilly, co-founder of Jarvis Labs, “It is important to see which wallet is active within the general flow of operations.”
Jarvis Labs is tracking a wallet they refer to as “Pablo” and the analysis shows that the wallet has historically been associated with a declining price trend in the price of Bitcoin. The last time Pablo BTC moved was during the sharp market correction in late February.
More recently, the Jarvis team noted that Pablo started mixing around 15,000 BTC on March 4th, indicating that a potential price drop is imminent. The dump came on March 14 as Bitcoin surged above $ 60,000 and was targeting a new all-time high.
“This behavior formed the final leg of the latest short-term bearish trend, which coincides with the upcoming largest expiration of the options. This is the kind of thing that can clear the way for higher heights. We are still bullish in April and general flows support this. “
Pick the altcoins rally as Bitcoin retreats
Despite the declining price of Bitcoin, a handful of altcoins were able to hit new highs. As reported by Cointelegraph, the ‘Coinbase Effect’ has increased the price of Ankr (ANKR), Curve DAO Token (CRV) and Storj (STORJ) from 50% to 100%. Coinbase Pro trading is expected to start on March 25th.
Theta (THETA) and Theta Fuel (TFUEL) continued their relentless surge on Tuesday after it was revealed that Sierra Ventures, Heuristic Capital, the VR Fund and the GFR Fund “donated more than $ 100 million in THETA to a collective enterprise validator Had set the node. ”
Following the announcement, theta rose 40% to a new all-time high of $ 14.21 and TFUEL rose 30% to a new record high of $ 0.53.
The market cap for cryptocurrencies is now at $ 1.69 trillion, and the dominance rate of Bitcoin is 59.8%.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.