Analysts Still ‘Bullish for April’ Despite Bitcoin Price Drop to $54K

On March 23, bears managed to push the price of Bitcoin (BTC) down to the $54,000 support level as various on-chain data indicated that whale wallets had begun to slow down their purchases and transfer risk to retail investors.

Data from Cointelegraph Markets and TradingView show that the price decline that began on March 22 and continued until Tuesday this week has retested the $54,000 support level for the second time this week.

Data from Coinshares suggests that BTC remains the asset of choice for institutional investors, while the industry as a whole continues to see significant growth as institutions are currently managing $57 billion in assets.

Despite the recent pullback, the uptrend remains intact

While inexperienced traders and those new to the cryptocurrency space may view the recent slide as a sign of a bearish reversal, Cointelegraph Markets analyst Michaël van de Poppe believes the pullback is a bullish development for Bitcoin.

To me this seems like the right correction for #Bitcoin.

As long as $49-51K holds, I assume we will see continuation towards $68K.

Still expecting #altcoins prices to surge starting in April. pic.twitter.com/WxaYQZ7IrE

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

Data from on-chain data provider CryptoQuant shows that a total of 14,600 BTC left Coinbase in the early hours of March 23. Traders often view BTC outflows as a bullish development, as a shortage of supply is widely considered a bullish narrative by crypto experts.

While it is impossible to determine for sure that the outflow is the result of whale accumulation, analysis from Whalemap shows that there has been a significant amount of accumulation at the $55,000 level, but the researchers caution that if the current support fails, the next strong support level is priced at $47,438.

Analysts at Jarvis Labs took a slightly different view and suggested that traders look at a wider range of trades to understand BTC’s day-to-day movements.

According to Jarvis Labs co-founder Ben Lilly, “It’s important to see which wallets are active within the total traffic.”

Jarvis Labs tracked a wallet they call “Pablo” and analysis shows that this wallet has historically been associated with bearish price action for Bitcoin price. The last time Pablo moved BTC occurred during a major market correction in late February.

Recently, the Jarvis team noted that Pablo’s shuffling of approximately 15,000 BTC starting on March 4 indicated a potential price drop was imminent. The dump was triggered on March 14 when the Bitcoin price climbed above $60,000 and attempted to set a new all-time high.

Lilly said:

“This behavior constitutes the last leg of a short-term bearish trend, aligning with the largest upcoming options expiration. This is the kind of thing that could clear the way for higher highs ahead. We remain bullish on April, and total flows support that.”

As Bitcoin Pulls Back, Select Altcoins Rebound

Despite Bitcoin’s bearish price action, a handful of altcoins were able to surge to new highs. As Cointelegraph reported, the ‘Coinbase effect’ boosted the prices of Ankr (ANKR), Curve DAO Token (CRV), and Storj (STORJ) by 50 to 100 percent, and is expected to begin trading on Coinbase Pro starting March 25.

THETA (THETA) and Theta Fuel (TFUEL) also continued their relentless climb higher on Tuesday after it was revealed that Sierra Ventures, Heuristic Capital, VR Fund and GFR Fund had “bet over $100M on THETA to collectively stake enterprise validator nodes.”

Following the announcement, Theta surged 40% to an all-time high of $14.21, and TFUEL rose 30% to an all-time high of $0.53.

Currently, the entire cryptocurrency market cap stands at $1.69 trillion, with Bitcoin’s dominance rate at 59.8%.