On March 23, the bears managed to push the price of Bitcoin (BTC) below the $ 54,000 support level, as various data from the network suggest that whale wallets have started to slow purchases and are shifting risk to retail investors.
Data from Cointelegraph Markets and TradingView show that the bearish trend that started on March 22 and continued on Tuesday, the price has again tested the $ 54,000 support level for the second time this week.
Coinshares data indicates that BTC remains the chosen asset for institutional investors, while the sector as a whole continues to see significant growth, as $ 57 billion in assets are being managed by institutions.
The upward trend remains intact despite the recent decline
While inexperienced traders and newcomers in the cryptocurrency space may see the recent slowdown as a sign of a bearish reversal, Cointelegraph Markets analyst Michaël van de Poppe sees the downturn as an upbeat development for Bitcoin.
To me, this looks like a healthy fix for #Bitcoin.
As long as $ 49-51K remains, I am assuming that we will see a continuation to $ 68K.
Still waiting for a big increase in #altcoins to happen from April. pic.twitter.com/WxaYQZ7IrE
– Michaël van de Poppe (@CryptoMichNL) March 23, 2021
Data from CryptoQuant, an on-chain data provider, shows that a total of 14,600 BTC left Coinbase in the early hours of March 23. Traders often see BTC exits as an upbeat development, as the perception of a supply shortage is an optimistic narrative popular with crypto experts.
While there is no way to confirm that the outflows were the result of whale accumulations, Whalemap’s analysis shows that there was a large accumulation of $ 55,000, but the researchers cautioned that if the current support level drops, the next level of support strong support is found at $ 47,438.
Jarvis Labs analysts took a slightly different view and suggested that traders look at more than just general exchange flows to understand BTC’s daily movements.
According to Jarvis Labs co-founder Ben Lilly, “it is important to see which portfolio is active in general flows”.
Jarvis Labs tracks a wallet they call “Pablo” and the analysis shows that the wallet has historically been linked to a bearish price action on the Bitcoin price. The last time that Pablo moved the BTC occurred during the strong correction of the market in late February.
More recently, Jarvis’s team noticed that Pablo started shuffling around 15,000 BTC on March 4, indicating that a possible price eviction was ahead. The eviction came on March 14, when Bitcoin rose to more than $ 60,000 and seemed to be trying to reach a new historical record.
Lilly said:
“This behavior formed the last stage of the last short-term bearish trend, which is in line with the next maturity of the biggest options. This is the kind of thing that can pave the way for higher rises ahead. We are still optimistic in April, and general flows support this. “
Select altcoins rally as Bitcoin pulls back
Despite the bearish action of the Bitcoin price, a handful of altcoins managed to rise to new highs. As reported by Cointelegraph, the ‘Coinbase effect’ boosted the price of Ankr (ANKR), Curve DAO Token (CRV) and Storj (STORJ) by 50% to 100% and trading is expected to start on Coinbase Pro from March 25 .
Theta (THETA) and Theta Fuel (TFUEL) also continued their relentlessly higher climb on Tuesday after it was revealed that Sierra Ventures, Heuristic Capital, The VR Fund and GFR Fund had “wagered more than $ 100 million in THETA for a collective company validator node”.
After the announcement, Theta rose 40% to a new record at $ 14.21 and TFUEL rose 30% to a new record at $ 0.53.
The overall capitalization of the cryptocurrency market is now $ 1.69 trillion and Bitcoin’s dominance rate is 59.8%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you must conduct your own research when making a decision.