On March 23, the bears managed to push the price of Bitcoin (BTC) below the support level of $ 54,000, as various data on the chain suggests that whale wallets have started to slow down purchases and are transferring risk. to retail investors.
Data from Cointelegraph Markets and TradingView shows that the downtrend that started on March 22 and continued through Tuesday, the price retested the $ 54,000 support level for the second time this week.
Coinshares data indicates that BTC remains the asset of choice for institutional investors, while the sector as a whole continues to experience significant growth, as institutions currently manage assets worth $ 57 billion.
The uptrend remains intact despite the recent pullback
While inexperienced traders and those new to the crypto space may view the recent recession as a sign of a bearish reversal, Cointelegraph Markets analyst Michaël van de Poppe sees the pullback as a bullish development for Bitcoin.
To me this seems like a healthy correction for #Bitcoin.
As long as $ 49-51K holds, I guess we will see a continuation towards $ 68K.
– 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 generally view BTC exits as a bullish development, as the perception of a supply shortage is a bullish narrative popular with crypto experts.
While there is no way to confirm that the exits were the result of whale accumulations, Whalemap analysis shows that there has been a large accumulation at the $ 55,000 level, but the researchers cautioned that if the current support level fails, the The next strong support level is found at $ 47,438.
Analysts at Jarvis Labs took a slightly different point of view and suggested that traders look at more than just general exchange flows to understand the daily movements of BTC.
According to Jarvis Labs co-founder Ben Lilly, “it is important to see which wallet is active within the overall flows.”
Jarvis Labs tracks a wallet they refer to as “Pablo” and analysis shows that the wallet has historically been tied to bearish price action in the price of Bitcoin. The last time Pablo moved BTC occurred during the strong market correction 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 drop was looming. The dump came on March 14 as Bitcoin surged above $ 60,000 and was looking to hit a new all-time high.
“This behavior formed the final leg of the latest short-term downtrend, which lines up with the expiration of the larger options to come. This is the kind of thing that can clear the way for higher highs to come. We remain bullish in April, and overall flows support this. “
Selecting altcoins rallies as Bitcoin falls back
Despite the bearish price action of Bitcoin, a handful of altcoins were able to climb to new highs. As reported by Cointelegraph, the ‘Coinbase effect’ increased the price of Ankr (ANKR), Curve DAO Token (CRV), and Storj (STORJ) from 50% to 100% and trading is expected to start on Coinbase Pro from March 25th.
Theta (THETA) and Theta Fuel (TFUEL) also continued their relentless ascent higher on Tuesday after it was revealed that Sierra Ventures, Heuristic Capital, The VR Fund, and GFR Fund had “staked more than $ 100 million in THETA on a collective business validation node.”
Following the announcement, Theta was up 40% to a new all-time high of $ 14.21 and TFUEL was up 30% to a new high of $ 0.53.
The overall cryptocurrency market capitalization 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 business move involves risk, you should do your own research when making a decision.