On March 23 bears managed to push the price of Bitcoin (BTC) below the $54,000 support level as various on-chain data suggests that whale wallets have begun slowing down purchases and are transferring the risk to retail investors.
Data from Cointelegraph Markets and TradingView shows that the downtrend that began on March 22 and continued into Tuesday s the price retested the $54,000 support level for the second time this week.
The uptrend remains intact despite the recent pullback
While inexperienced traders and those new to the cryptocurrency space might view the recent downturn 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 looks like a healthy correction for #Bitcoin.
As long as $49-51K holds, I’m assuming we’ll see continuation towards $68K.
Still expecting a massive surge on #altcoins to happen from April onwards. 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 typically view BTC outflows as a bullish development since the perception of a supply shortage is a popular bullish narrative among crypto pundits.
According to Jarvis Labs co-founder Ben Lilly, “it’s important to see what wallet is active within the general flows.”
Jarvis Labs tracks one wallet which they refer to as “Pablo” and analysis shows that the wallet has historically been tied to bearish price action in Bitcoin price. The last time Pablo moved BTC occurred during the sharp market correction in late February.
“This behavior formed the final leg of the last short-term bearish trend, which lines up with the upcoming largest options expiry. This is the type of thing that can clear the way for higher highs ahead. We’re still bullish on April, and general flows support this.”
Select altcoins rally as Bitcoin pulls back
Despite Bitcoin’s bearish price action, a handful of altcoins were able rallly to new highs. As reported by Cointelegraph, the ‘Coinbase effect’ boosted Ankr (ANKR), Curve DAO Token (CRV) and Storj (STORJ) price from 50% to 100% and trading is expected to commence on Coinbase Pro starting on March 25.
Following the announcement, Theta surged 40% to a new all-time high of $14.21 and TFUEL rallied 30% to a new record high of $0.53.
The overall cryptocurrency market cap now stands at $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 should conduct your own research when making a decision.
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