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

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On March 23 bears managed to push the price of Bitcoin (BTC) beneath the $54,000 help degree as numerous on-chain information means that whale wallets have begun slowing down purchases and are transferring the chance to retail traders. 

Information from Cointelegraph Markets and TradingView exhibits that the downtrend that started on March 22 and continued into Tuesday s the price retested the $54,000 help degree for the second time this week.

BTC/USDT 4-hour chart. Supply: TradingView

Information from Coinshares signifies that BTC stays the chosen asset for institutional traders whereas the sector as an entire continues to see vital development as $57 billion in belongings is at present being managed by establishments.

The uptrend stays intact despite the latest pullback

Whereas inexperienced merchants and people new to the cryptocurrency area 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 growth for Bitcoin.

To me, this seems to be like a wholesome correction for #Bitcoin.

So long as $49-51K holds, I am assuming we’ll see continuation in direction of $68K.

Still anticipating a large surge on #altcoins to occur from April onwards. pic.twitter.com/WxaYQZ7IrE

— Michaël van de Poppe (@CryptoMichNL) March 23, 2021

Information from CryptoQuant, an on-chain information supplier, exhibits {that a} complete of 14,600 BTC left Coinbase within the early hours of March 23. Merchants usually view BTC outflows as a bullish growth because the notion of a provide scarcity is a well-liked bullish narrative amongst crypto pundits.

BTC outflows from Coinbase Professional. Supply: CryptoQuant

Whereas there isn’t a method to verify that the outflows had been the results of whale accumulations, evaluation from Whalemap exhibits that there was heavy accumulation on the $55,000 degree, however the researchers cautioned that ought to the present help degree fail, the subsequent sturdy help degree is discovered at $47,438.

Massive BTC pockets inflows. Supply: Whalemap

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

In accordance 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.

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

Extra just lately, the Jarvis staff famous that Pablo started shuffling round 15,000 BTC on March 4, indicating {that a} potential price 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 stated:

“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.

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

Theta (THETA) and Theta Fuel (TFUEL) also continued their relentless climb higher on Tuesday after it was revealed that Sierra Ventures, Heuristic Capital, The VR Fund and GFR Fund had “staked more 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 price is 59.8%.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you must conduct your personal analysis when making a call.

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