Analysts still ‘bullish on April’ despite Bitcoin price drop to $54K


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On March 23 bears managed to push the worth of Bitcoin (BTC) beneath the $54,000 assist stage as numerous on-chain knowledge means that whale wallets have begun slowing down purchases and are transferring the danger to retail traders. 

Knowledge from Cointelegraph Markets and TradingView exhibits that the downtrend that started on March 22 and continued into Tuesday s the worth retested the $54,000 assist stage for the second time this week.

BTC/USDT 4-hour chart. Supply: TradingView

Knowledge from Coinshares signifies that BTC remains the chosen asset for institutional investors whereas the sector as a complete continues to see vital progress as $57 billion in belongings is presently being managed by establishments.

The uptrend stays intact regardless of the latest pullback

Whereas inexperienced merchants and people new to the cryptocurrency house may view the latest downturn as an indication of a bearish reversal, Cointelegraph Markets analyst Michaël van de Poppe sees the pullback as a bullish improvement for Bitcoin.

Knowledge from CryptoQuant, an on-chain knowledge supplier, exhibits {that a} complete of 14,600 BTC left Coinbase within the early hours of March 23. Merchants sometimes view BTC outflows as a bullish improvement for the reason that notion of a provide scarcity is a well-liked bullish narrative amongst crypto pundits.

BTC outflows from Coinbase Professional. Supply: CryptoQuant

Whereas there is no such thing as a technique to affirm that the outflows have been the results of whale accumulations, evaluation from Whalemap exhibits that there was heavy accumulation on the $55,000 stage, however the researchers cautioned that ought to the present assist stage fail, the subsequent sturdy assist stage is discovered at $47,438.

Massive BTC pockets inflows. Supply: Whalemap

The analysts at Jarvis Labs took a barely totally different viewpoint and instructed that merchants have a look at extra than simply the overall trade flows to grasp BTC’s day-to-day actions.

In accordance with Jarvis Labs co-founder Ben Lilly, “it is vital to see what pockets is energetic inside the basic flows.”

Jarvis Labs tracks one pockets which they check with as “Pablo” and evaluation exhibits that the pockets has historically been tied to bearish price action in Bitcoin price.  The final time Pablo moved BTC occurred through the sharp market correction in late February.

Bitcoin transactions from “Pablo” pockets. Supply: Jarvis Labs

Extra just lately, the Jarvis group famous that Pablo started shuffling round 15,000 BTC on March 4, indicating {that a} potential worth dump was forward. The dump got here on March 14 as Bitcoin climbed above $60,000 and regarded to make a run for a brand new all-time excessive.

BTC/USD perpetual swap contract. Supply: Jarvis Labs

Lilly mentioned:

“This conduct shaped the ultimate leg of the final short-term bearish development, which traces up with the upcoming largest choices expiry. That is the kind of factor that may clear the best way for larger highs forward. We’re nonetheless bullish on April, and basic flows assist this.”

Choose altcoins rally as Bitcoin pulls again

Regardless of Bitcoin’s bearish worth motion, a handful of altcoins have been ready rallly to new highs. As reported by Cointelegraph, the ‘Coinbase effect‘ boosted Ankr (ANKR), Curve DAO Token (CRV) and Storj (STORJ) worth from 50% to 100% and buying and selling is predicted to start on Coinbase Professional beginning on March 25.

CRV/USDT vs. ANKR/USDT vs. STORJ/USDT 1-day chart. Supply: TradingView

Theta (THETA) and Theta Gas (TFUEL) additionally continued their relentless climb larger on Tuesday after it was revealed that Sierra Ventures, Heuristic Capital, The VR Fund and GFR Fund had “staked greater than $100M in THETA to a collective Enterprise Validator Node.”

Following the announcement, Theta surged 40% to a brand new all-time excessive of $14.21 and TFUEL rallied 30% to a brand new document excessive of $0.53.

The general cryptocurrency market cap now stands at $1.69 trillion and Bitcoin’s dominance charge is 59.8%.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer entails danger, you need to conduct your individual analysis when making a choice.