On March 25, concerns about the expiration of a record $ 6.1 billion BTC options on Friday triggered an overnight sell-off, which saw Bitcoin’s price drop to $ 50,400.
Deflation came as no surprise to many traders, and some have asked for a possible test of the $ 47,000 support level. Although Bitcoin has lost its bullish momentum, several derivative indicators, including bullish futures premium and neutral divergence, indicate that the price cannot fall below $ 50,000.
While technical indicators paint an ambiguous picture of Bitcoin’s price movement in the short term, the asset maintains strong fundamentals today. The media reported that government wealth funds began asking about opening positions in bitcoin. This indicates an increasing global dependence on the BTC and the cryptocurrency sector in general, as new Ether (ETH) funds are also created to serve institutional investors.
Analysts point to the oversold market.
Glassnode co-founder and CTO Rafael Schulze-Kraft recently highlighted a potential drop in prices based on the low split between $ 51,100 and $ 54,000.
In a follow-up tweet after Thursday’s dive, Schultz-Kraft reiterated that the dive was “unexpected” and that he believes the general outlook is still optimistic.
Schultz Kraft said:
“Structurally, nothing has changed. I still have to see data indicating a downward trend in the long run. ”
More evidence of a potential shift in the near future can be found when looking at the change in the bitcoin liquidity supply, which has fallen the most in over 6 months.
This indicates that a large amount of BTC is extracted from tradable shares and placed in long-term portfolio portfolios when the bulls are preparing for a price increase.
Alternative currencies are falling
Most altcoins have been hit hard by the Bitcoin sale as traders in the market have left their positions in an attempt to hold on to the latest gains.
The only feature among altcoins is Aragon (ANT), whose recent turn towards DeFi and non-fungible tokens helped increase 50% to $ 13.56.
Holochain (HOT) and Balancer (BAL) also had positive gains of 5.2% and 6.4%, respectively.
The total market value of cryptocurrency is now $ 1.62 trillion, and Bitcoin’s dominance is 59.4%.