Optimism in the cryptocurrency sector continues as the recent gains in Bitcoin (BTC) have helped push the valuation of the highest ranking cryptocurrency above that of the South Korean won.
Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin saw a sell-off in the early hours of the morning, pushing the price down to a low of $ 54,948 before the bulls returned to push the price back above $ 57,000 for a short time.
BTC / USDT 4-hour chart. Source: TradingView
Regardless of the Bitcoin price development, institutional investors have consistently expressed their interest in BTC. Today MicroStrategy announced it had purchased an additional 262 BTC at an average price of $ 57,146, bringing the company’s total stake to 91,326 BTC.
According to David Lifchitz, Chief Investment Officer at ExoAlpha, the price trend in the next few days will “show whether Bitcoin is ready to hit new highs or whether a pullback is imminent”.
Lifchitz noted that the price of BTC fell slightly on Friday after stalling “just a few basis points from its all-time high, likely due to profit-taking” by those who saw the 10% gain from $ 45,000 to $ 57,000 USD monetized ”.
The bullish indicators for Bitcoin identified by Lifchitz include the interest of institutional dip buyers around the $ 45,000 level and the recently passed stimulus package by President Biden, which in his opinion “can go straight into crypto buying”.
Lifchitz admitted that despite the long-term uptrend in Bitcoin prices, there were some reasons for a more bearish outlook in the short term. Some factors to consider are the upcoming tax season in the US, which could cause some investors to sell some of their holdings in order to raise money for paying taxes on profits made in fiscal 2020.
Another short-term bearish factor that Lifchitz identified was the potential spillover effect that could result from the sale of traditional assets that “can be stretched by any action and have short-term profit-taking”.
Overall, Lifchitz came to the conclusion:
A sideways consolidation is likely here shortly before a possible breakout to new ATH if the pullback persists as described above.
Investors are jumping headlong into non-fungible tokens
Non-fungible tokens remain the main cryptocurrency topic following the record-breaking close of the Beeple NFT auction on March 11 for more than $ 69.3 million.
Chiliz (CHZ) is the breakout star of the day as its 24-hour trading volume of $ 5.55 billion drove the blockchain-based fan engagement platform 82% to a new all-time high of $ 0.59 has raised.
CHZ / USDT 4 hour chart. Source: TradingView
Cointelegraph Markets Pro’s VORTECS ™ data began to see an optimistic outlook for CHZ on March 10, ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS ™ Score (green) vs. CHZ price. Source: Cointelegraph Markets Pro
As can be seen in the shopping cart above, the VORTECS ™ value rose from 49 on March 8th to 84 on March 10th, approximately 24 hours before the price increase of 175% to a new all-time high in the next two days.
After significant growth, decentralized financial projects were in a consolidation phase in the first two months of 2021, when top DEX and DeFi platforms examined options such as networked chains and Layer 2 solutions to relieve the high transaction costs in Ethereum (ETH ) Network.
Polygon (MATIC) and SKALE (SKL) are two Ethereum scaling solutions that outperformed their altcoin counterparts this week after both tokens rallied nearly 100% after being listed on Coinbase on March 9th.
Daily market performance in cryptocurrencies. Source: Coin360
Overall, the cryptocurrency market came under pressure at the beginning of the weekend. The decline is most likely the result of Bitcoin price declining near its all-time high, and not a sign of a change in trend. Still, the majority of large-cap cryptocurrencies are down 2% to 10%.
The market cap for cryptocurrencies is now $ 1.71 trillion, and Bitcoin’s dominance rate is 62%.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.
