On March 23, Bears managed to push the price of Bitcoin (BTC) below the $ 54,000 support level, as various chain data suggest that whale portfolios have begun to delay purchases and pass on the risk to retail investors.
Data from Cointelegraph Markets and TradingView show that the deteriorating trend that started on March 22 and continued until Tuesday, the price tested the $ 54,000 support level for the second time this week.
Data from Coinshares indicates that BTC remains the chosen asset for institutional investors, while the sector as a whole sees significant growth as $ 57 billion in assets are currently managed by institutions.
The rising trend remains intact despite the recent downturn
While inexperienced traders and those new to the cryptocurrency space may view the recent slump as a sign of a bearish reversal, Michael Coetelegraph Markets analyst Michael van de Poppe sees the downturn as a positive development for Bitcoin.
To me it seems like a healthy fix for # Bitcoin.
As long as $ 49-51K applies, I assume we will see continuation to $ 68K.
Still expecting a huge increase #altcoins to happen from April. pic.twitter.com/WxaYQZ7IrE
– Michaël van de Poppe (@CryptoMichNL) March 23, 2021
Data from CryptoQuant, a data provider on the chain, shows that a total of 14,600 BTC left Coinbase in the early morning hours of March 23rd. Traders usually view BTC outflow as a bullish development, as the perception of a shortage of supply is a popular bullish story among crypto experts.
While there is no way to confirm that the outflow is due to whale accumulations, Whalemap’s analysis shows that there was a huge accumulation at the $ 55,000 level, but the researchers warned that if the current level of support failed, the next strong support level was found at $ 47,438.
The analysts at Jarvis Labs took a slightly different stance, suggesting that traders look at more than just the common exchange rates to understand the daily movements of BTC.
According to Ben Lilly, co-founder of Jarvis Labs, “it’s important to see which wallet is active within the general flow.”
Jarvis Labs holds one wallet after what they call ‘Pablo’, and analysis shows that the wallet has historically been linked to a bearish price action in the Bitcoin price. The last time Pablo BTC moved occurred during the sharp correction of the market at the end of February.
More recently, the Jarvis team noted that on March 4, Pablo will start shuffling around 15,000 BTC, indicating a potential price drop ahead. The crash occurred on March 14 when Bitcoin climbed above $ 60,000 and wanted to strive for a new record of all time.
Lilly said:
‘This behavior forms the last point of the last short-term trend, which corresponds to the coming biggest expiration of options. This is the type of thing that can pave the way for higher altitudes ahead. We are still strong on April, and general flow supports it. ‘
Choose altcoins rally as Bitcoin withdraws
Despite Bitcoin’s bearish price action, a handful of altcoins were able to reach new highs. As reported by Cointelegraph, the ‘Coinbase effect’ boosted the price of Ankr (ANKR), Curve DAO Token (CRV) and Storj (STORJ) from 50% to 100% and is expected to trade Coinbase Pro begins on March 25th.
Theta (THETA) and Theta Fuel (TFUEL) continued their relentless climb on Tuesday after it revealed that Sierra Ventures, Heuristic Capital, The VR Fund and GFR Fund ‘have invested more than $ 100 million in THETA in a joint Enterprise Validator Node.’
Following the announcement, Theta rose 40% to a new record high of $ 14.21 and TFUEL rose 30% to a new record high of $ 0.53.
The overall market capitalization for cryptocurrency now stands at $ 1.69 billion and Bitcoin’s dominance rate is 59.8%.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading movement involves risk. You must do your own research when making a decision.