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



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On March 23, the bears were successful in pushing the price of Bitcoin (BTC) below the support level of $ 54,000, as various on-chain data suggests whale wallets started slowing down buying and shifting the risk to investors from detail.

Data from Cointelegraph Markets and TradingView show that the downtrend that started on March 22 and continued through Tuesday, retested the $ 54,000 support level for the second time this week.

4 hour BTC / USDT chart. Source: TradingView

Coinshares data indicates that BTC remains the asset of choice for institutional investors, while the industry as a whole continues to experience significant growth as $ 57 billion in assets are currently managed by institutions.

The uptrend remains intact despite the recent pullback

While inexperienced traders and newcomers to cryptocurrency might view the recent slowdown as a sign of a bearish reversal, Cointelegraph Markets analyst Michaël van de Poppe sees the pullback as a bullish development for Bitcoin. .

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 popular bullish narrative among crypto experts.

BTC exits Coinbase Pro. Source: CryptoQuant

While there is no way to confirm that the outings were the result of whale accumulations, Whalemap analysis shows there was a large build-up to the $ 55,000 level, but researchers have warned that if the current support level fails, the next strong support level is found at $ 47,438.

Large BTC wallet entries. Source: Whaling card

Analysts at Jarvis Labs took a slightly different point of view and suggested that traders look more than general exchange flows to understand the daily movements of BTC.

According to Jarvis Labs co-founder Ben Lilly, “It’s important to see which portfolio is active in general feeds.”

Jarvis Labs follows a portfolio they call “Pablo” and analysis shows that the portfolio has always been linked to bearish Bitcoin price action. The last time Pablo moved BTC was during the sharp market correction in late February.

Bitcoin transactions from the “Pablo” wallet. Source: Jarvis Labs

More recently, the Jarvis team noted that Pablo started to shuffle around 15,000 BTC on March 4, indicating that a potential price drop was ahead. The dump took place on March 14 as Bitcoin climbed above $ 60,000 and was looking to hit a new all-time high.

Perpetual BTC / USD exchange contract. Source: Jarvis Labs

Lilly said:

“This behavior formed the last stage of the last short-term downtrend, which is the next expiration of the most important options. It’s the kind of thing that can pave the way for higher highs to come. We are still bullish in April, and the general flows are supporting it. “

Select an altcoins rally as Bitcoin retreats

Despite the bearish price action of Bitcoin, a handful of altcoins have been able to reach new highs. As reported by Cointelegraph, the “ Coinbase effect ” increased the prices of Ankr (ANKR), Curve DAO Token (CRV) and Storj (STORJ) by 50% to 100% and trading is expected to start on Coinbase Pro at from March 25.

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

Theta (THETA) and Theta Fuel (TFUEL) also continued their relentless ascent on Tuesday after revealed that Sierra Ventures, Heuristic Capital, The VR Fund and GFR Fund had “staked over $ 100 million in THETA in a collective enterprise validation node.”

Following the announcement, Theta jumped 40% to a new all-time high of $ 14.21 and TFUEL rallied 30% to a new all-time high of $ 0.53.

The overall cryptocurrency market cap is now $ 1.69 trillion and Bitcoin’s dominance rate is 59.8%.

The opinions 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 comes with risk, you should do your own research when making a decision.