$51K Bitcoin price not a problem as ‘structurally, nothing has changed’

On-chain data points toward a bullish future for Bitcoin despite today’s sell-off to $50,400.

On March 25, concerns surrounding the record-breaking $6.1 billion (BTC) options expiry this Friday sparked an overnight sell-off that dropped Bitcoin price to $50,400.

The downturn was not a surprise for many traders and some called for a possible test of the $47,000 support level. Despite Bitcoin’s loss of bullish momentum, several derivatives indicators, including a bullish futures premium and a neutral skew, suggest that the price may not drop below $50,000.

BTC/USDT 4-hour chart. Source: TradingView

While technical indicators paint a mixed picture of Bitcoin’s short-term price action, the asset retains strong fundamentals today media reported that sovereign wealth funds have begun inquiring about opening positions in BTC. This points to growing global adoption for BTC and the cryptocurrency sector as a whole as new Ether (ETH) trusts are also being established to serve institutional investors.

Analysts suggest the market is oversold

Glassnode co-founder and CTO Rafael Schultze-Kraft recently highlighted a possible dip lower based on low realized price distribution between $51,100 and $54,000.

In a follow-up tweet after Thursday’s drop, Schultze-Kraft reaffirmed that the dip was “not unexpected” and in his view, the overall outlook remains bullish.

Schultze-Kraft said:

“Structurally, nothing has changed. I have yet to see a data point that points long-term bearish.”

Further evidence of a possible turnaround in the near-term can be found when looking at Bitcoin’s liquid supply change, which decreased by the largest amount in more than 6 months.

Bitcoin liquid supply change. Source: Glassnode

This suggests that a large number of BTC have been pulled out of the circulating supply and deposited into longer-term storage wallets as bulls prepare for the price to trend higher.

Altcoins sink lower

A majority of the altcoins were hit hard by the Bitcoin sell-off as traders across the market exited positions in an attempt to hold on to their recent gains.

Daily cryptocurrency market performance. Source: Coin360

The one stand-out among altcoins is Aragon (ANT), whose recent pivot toward DeFi and nonfungible tokens has helped to spark a 50% rally to $13.56.

Holochain (HOT) and Balancer (BAL) have also managed to put up a positive gain of 5.2% and 6.4% respectively.

The overall cryptocurrency market cap now stands at $1.62 trillion and Bitcoin’s dominance rate is 59.4%.

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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Streaming tokens surge as Bitcoin price drops to the $54,000 support

Tokens related to gaming, video and music streaming rallied to new highs even as Bitcoin price pulled back to the $54,000 support.

Bitcoin (BTC) bulls faced strong headwinds on March 22 that quickly dampened any attempt at a breakout above the $58,000 level despite comments from United States Federal Reserve Chair Jerome Powell which called the top cryptocurrency a “substitute for gold.”

Data from Cointelegraph Markets and TradingView show that traders made several attempts to push BTC above $58,000 over the past two days only to be rejected, with Monday’s failure resulting in a pullback to the $54,000 support level.

BTC/USDT 4-hour chart. Source: TradingView

On-chain analysis shows that while BTC price struggles to climb back above $60,000, whale wallets have been in accumulation mode over the past 30 days indicating that some of the wealthiest Bitcoin holders still see more upside for the current bull market.

Mainstream cryptocurrency adoption gains traction

The macro picture for the cryptocurrency sector continues to improve as the globally recognized TIME magazine revealed that it is looking for a CFO who is comfortable with Bitcoin and cryptocurrencies as the publication has begun exploring the creation of one-of-a-kind non-fungible tokens based on some of its most iconic covers.

Now that blockchain technology has evolved to the point where it can handle processes like video and music streaming, platforms with a first-mover advantage in those sectors have seen their prices breakout over the past few months as mainstream audiences are increasingly exposed to the cryptocurrency ecosystem.

Theta (THETA) and Theta Fuel (TFUEL) have taken the lead when it comes to blockchain-based video streaming with the dual token system enjoying astronomical growth in 2021 that continues to push its price to new all-time highs.

THETA/USDT vs. TFUEL/USDT 4-hour chart. Source: TradingView

Audius (AUDIO), a music streaming platform, has also rallied strongly over the past month as its price increased from $0.356 on Feb. 28 to a new all-time high at $2.05 on March 16.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for AUDIO on March 1, prior to the recent price rise.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. AUDIO price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ score for AUDIO was in the green late in February and hit a high of 68 on March 1, roughly 24-hours before the price began to increase by 400% over the next two weeks.

Following the price peak on March 16, AUDIO price and its VORTECS™ score experienced a pullback that lasted several days. The VORTECS™ score then turned green again and reached a high of 71 on March 20, roughly 15 hours before its recent price rise.

Daily cryptocurrency market performance. Source: Coin360

Other notable altcoin performances on March 22 include Augur (REP), which has seen its price increase 30% to a multi-year high of $39.30, and XRP, which spiked 20% to an intraday high at $0.60 as members of the XRP army look to get the token relisted on exchanges that suspended services in response to th actions from the U.S. Securities and Exchange Commission.

The overall cryptocurrency market cap now stands at $1.746 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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Messari CEO thinks a fresh wave of crypto regulation could be imminent

After nearly a decade of progress since Bitcoin’s inception, regulators could be gearing up for further action, given the industry’s recent growth.

Regulators may see crypto’s recent growth as a problem, according to Messari CEO and founder Ryan Selkis. 

“I’ve never been more bullish on crypto but I think everyone might be mispricing global regulatory risk,” Selkis tweeted on Thursday, adding:

“When crypto looks like a toy, it’s not a threat. When stablecoins hit PayPal volumes and go private, it starts to look like a weapon.”

In the months following its drop below $4,000 in March 2020, Bitcoin (BTC) has surpassed $60,000 in price. DeFi assets have surged over the past year or so as well. Yearn.finance (YFI) went from less than $1,000, all the way up past $48,000, based on CoinMarketCap data. Nonfungible tokens, the current industry craze, may be the biggest of them all — An artist known as Beeple recently sold an NFT artwork for $69M at auction.

Selkis noted his price target for taking profit on what one can assume to be Bitcoin, relative to hi regulatory concerns. “I’ve got early sell orders set for $80k,” he said in his tweet. “Selling 5% 80-100k, and another 5% $100-125k,” he said in a separate tweet as a response to one of the comments on his initial post. “Then we’ll see where things go from there,” he added.

During the last major crypto boom in 2017, initial coin offerings, or ICOs, were the big thing. U.S. regulatory bodies increased their governance on the sector in the years following, taking action against a number of projects. Regulation has also affected crypto in other regions in various fashions, including the European Union, with its 5th Anti-Money Laundering Directive

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Altcoins spike to new highs while Bitcoin bulls aim to recapture $57K

Terra (LUNA), Basic Attention Token and Cardano spiked to new highs as Bitcoin and Ethereum attempted to recover from their recent correction.

Bitcoin (BTC) price continues to recover from its sub-$55,000 correction and at the time of writing, traders are attempting to recapture the $57,000 level as a support. 

Data from Cointelegraph Markets and TradingView shows that a wave of early morning selling pushed Bitcoin price to a daily low of $53,167 and while dip buyers did manage to step in, the lack of purchasing volume is keeping BTC pinned in what appears to be a tightening range.

BTC/USDT 4-hour chart. Source: TradingView

While Bitcoin price could continue to meet overhead resistance in the $56,000 to $58,000 range, a strong bullish case still exists as a potential $6.1 billion worth of Bitcoin options are set to expire on March 26. According to Cointelegraph contributor Marcel Pechman, derivatives data indicates that the upcoming expiry is more advantageous for the bulls as long as BTC remains above $52,000.

Ether (ETH) has also traded in a consolidation pattern since setting a new all-time high at $1,950 on March 13 and professional traders view the $1,750 level as strong support following multiple bearish retests over the past week.

Altcoins press ahead while Bitcoin price recovers

Several altcoins saw their prices breakout on Tuesday as partnership announcements and exchange listings have proven to be effective price movers.

The biggest announcement of the day came from Coinbase Pro, which revealed that it has begun accepting inbound transfers of Cardano (ADA) and will support trading services “on or after 9 AM PT on Thursday, March 18, if liquidity conditions are met.”

Terra (LUNA) has also put on another double-digit gain overnight, spiking more than 40% from a low of $14.60 on March 15 to a new all-time high of $20.60 on $1.4 billion in trading volume.

LUNA/USDT 4-hour chart. Source: TradingView

Basic Attention Token (BAT) has also seen its price surge to a new record high at $1.18 as the blockchain-based web browser continues to reap the benefits of multiple announcements, including the acquisition of a search engine provider and plans to integrate NFT functionality and a DEX aggregator.

Traditional markets take a tumble as Treasuries rise

The global financial markets fell under pressure on Tuesday as weaker than expected retail sales and a rising 10-year Treasury yield, which closed the day up 0.87% at 1.621.

Following record highs set on March 16, the S&P 500 and Dow faced dropped throughout the day and closed down 0.16% and 0.39% respectively. The NASDAQ was able to start a late-day rally that helped its price close up 0.09%.

Analysts predict accelerated growth in the crypto market

Daily cryptocurrency market performance. Source: Coin360

Despite the drawdown in both Bitcoin and Ether price, the overall outlook for the cryptocurrency market is bullish as signs of steady mainstream adoption emerge on a daily basis.

Data shows that long-term cryptocurrency holders have been accumulating BTC in recent months, while short-term traders are confident that high leverage speculative trading will pay off. The steady increase in BTC accumulation suggests that the current bull market has ample room to run higher.

The overall cryptocurrency market cap now stands at $1.723 trillion and Bitcoin’s dominance rate is 60.8%.

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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Bitcoin bulls take a breather while BTC price slips below $55,000

Sellers pushed Bitcoin price below $55,000 even as record-high BTC futures open interest and optimism surrounding the issuance of $1,400 stimulus checks for Americans had traders anticipating a rally.

Bitcoin price sold off on March 15 as bears pushed the price back into the mid-$50,000 range a few days after (BTC) hit a new all-time high above $61,000. 

Data from Cointelegraph Markets and TradingView shows that Bitcoin price dropped as low as $54,600 and at the time of writing, buyers have not stepped in to arrest the decline.

BTC/USDT 4-hour chart. Source: TradingView

A series of recent developments have increased the fear, uncertainty and doubt (FUD) factor for the top cryptocurrency, including rumors of a potential digital asset ban in India that would criminalize the possession, issuance, mining, trading and transfer of cryptocurrency.

Adding to the bad news of the day, PancakeSwap (CAKE) and Cream Finance (CREAM), two of the top DeFi projects on the Binance Smart Chain, fell victim to a DNS spoofing attack that sought to phish users into entering their private keys on the website.

Both projects immediately informed users of the exploit and advised them to avoid logging in until the issue is resolved. and are reminded to keep their private keys and seed phrases secure and stored offline. At the daily close CAKE price was down by 8.7% and CREAM dropped by 14.3% before recovering to $110 at the daily close.

The bullish uptrend remains intact

Despite Monday’s decline, traders are optimistic that BTC will see a rapid recovery and a recent survey estimates that up to 10% of the $400 billion in pandemic relief for U.S. citiz could be used to purchase Bitcoin and stocks.

Another bullish sign for BTC comes from the futures markets, where a record $22.5 billion in open interest on BTC futures indicates that bulls remain optimistic that the current uptrend will continue.

According to Chad Steinglass, Head of Trading at CrossTower, the early morning sell-off was not surprising due to several factors including less liquidity on the weekends which can lead to “liquidations in highly levered swap and options products that trade outside of the U.S.,” exacerbating the downward movement.

Steinglass said:

“Couple this with the fact that China has been trading weak ever since the Lunar New Year in both equity and crypto markets, and a sell-off from the weekend highs, while disappointing, is not particularly surprising.”

Stimulus optimism leads to new record-highs in equities

The traditional financial markets rallied on Monday as optimism surrounding the recent $1.9 billion stimulus package signed by President Biden helped dampen concerns related to rising Treasury yields.

The S&P 500, Dow and NASDAQ all closed the day positive, up 0.65%, 0.53% and 1.05% respectively. The S&P 500 and Dow both establishing new all-time highs as the trading day closed.

Select altcoins ignore Bitcoin’s bearish turn

Daily cryptocurrency market performance. Source: Coin360

Despite the bearish turn of events, several altcoins were able to resist and rally higher.

Enjin (ENJ) saw its price surge 32% to a new all-time high of $3.00 during the early trading hours as the altcoins volume surged after being listed on Huobi exchange.

The dual-token system of VeChain (VET) and the VeThor Token (VTHO) also moved higher as a high volume spike lifted VET to a new all-time high at $0.0827. VTHO price increased 37% to $0.0119, its highest level in over two years.

BTC/USD daily chart. Source: Coin360

The overall cryptocurrency market cap now stands at $1.71 trillion and Bitcoin’s dominance rate is 60.9%.

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