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

Published at: March 16, 2021

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.

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

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.

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

Tags
Nft
Related Posts
Altcoins spike to new highs while Bitcoin bulls aim to recapture $57K
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. 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 …
Blockchain / March 16, 2021
Bitcoin price rally to $61,800 shows BTC bulls are in full control
On March 13 bulls took full control of the crypto market as Bitcoin (BTC) price vaulted to a new all-time high at $61,844 after a high volume surge pushed the price through overhead resistance near $58,000. Analysts had spent the week calling for an eventual move above the $60,000 level and social metrics showed bullish sentiment for Bitcoin continued to increase as a number of companies and institutional investors announced plans to make BTC purchases. Bitcoin now finds itself in the realm of price discovery as there is limited data available from a technical analysis standpoint to determine where the …
Blockchain / March 14, 2021
Altcoins sell-off after Bitcoin price rejects near its $58K all-time high
Optimism continues to percolate in the cryptocurrency sector on as recent gains in Bitcoin (BTC) have helped push the valuation of the top-ranked cryptocurrency past that of the South Korean won. Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin experienced a wave of selling in the early hours that pushed the price to a low of $54,948 before bulls returned to briefly push the price back above $57,000. Regardless of Bitcoin price action, institutional investors have consistently expressed their interest in BTC. Today, MicroStrategy announced that it had purchased another 262 BTC at an average price …
Blockchain / March 12, 2021
Bull flag breakout sets a $55,000 target for Bitcoin price
Bitcoin (BTC) price sliced through the $50,000 resistance level during the early trading hours on March 3 as bulls found their momentum and the majority of altcoins joined in on the rally as the day progressed. Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin was trading at $48,500 in the early hours on March 3 before surging 8.6% to an intraday high of $52,631. Currently, BTC price trades slightly below $51,000, and while $50,000 may have become a soft support, a daily close above the 23.6% Fibonacci retracement ($52,000) is needed to confirm that a bullish …
Blockchain / March 4, 2021
Bulls largely absent as Bitcoin price slips to the bottom of its range near $32K
Within the past few hours, a fresh wave of selling pushed Bitcoin (BTC) price close to the $32,000 support level as the low trading volume and general disinterest from traders saw the price revisit the lower section of its current range. The price of Ether (ETH) also fell under pressure alongside Bitcoin as the building momentum ahead of the network’s upcoming London Hard Fork failed to support a price above $2,000, resulting in a daily low of $1,918. Bitcoin's compression range tightens Some insights into the current market conditions were offered by Gas Fring, a pseudonymous Twitter account, who posted …
Nft / July 13, 2021