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

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Bitcoin price sold out on March 15 when bears pushed the price back into the mid-range of $ 50,000 a few days after hitting a new all-time high above $ 61,000.

Data from Cointelegraph Markets and TradingView shows that Bitcoin price has fallen to $ 54,600 and at the time of writing buyers had not intervened to stop the decline.

BTC / USDT 4 hour chart. Source: TradingView

A number of recent developments have raised the FUD (Fear, Uncertainty, and Doubt) factor for the top cryptocurrency, including rumors of a potential digital asset ban in India that could be owned, issued, mined, traded and transferred Would make cryptocurrency a criminal offense.

On top of 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 attempting to trick users into it to enter their private keys The webpage.

Both projects immediately notified users of the exploit and advised them not to sign up until the issue is resolved. and are reminded to keep their private keys and startup phrases safe and offline. At the close of the day, the CAKE price fell 8.7% and the CREAM fell 14.3% before recovering to $ 110 at the close of the day.

The uptrend remains intact

Despite Monday’s decline, traders are optimistic that BTC will recover quickly. A recent survey estimates that up to 10% of the $ 400 billion in pandemic aid to U.S. citizens could be used to buy bitcoin and stocks.

Another bullish sign for BTC is the futures markets, where a record $ 22.5 billion open interest in BTC futures suggests the 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 a number of factors, including less liquidity on the weekends, which can lead to “liquidations on highly indebted swap and option products traded outside the US. “Exacerbation of the downward trend.

Stone glass said:

“Coupled with the fact that China has been trading weakly in both the stock and crypto markets since the Lunar New Year, and a sell-off from weekend highs is disappointing but not particularly surprising.”

Stimulus optimism leads to new record highs for stocks

Traditional financial markets rebounded on Monday as optimism about President Biden’s recent $ 1.9 billion stimulus package helped ease concerns about rising government bond yields.

The S&P 500, Dow and NASDAQ all finished the day positive, up 0.65%, 0.53% and 1.05%, respectively. Both the S&P 500 and the Dow hit new all-time highs at close of trading.

Select altcoins ignore Bitcoin’s bearish twist

Daily market performance in cryptocurrencies. Source: Coin360

Despite the downward turn, several altcoins were able to resist and rise higher.

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

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

BTC / USD daily chart. Source: Coin360

The market cap for cryptocurrencies is now at $ 1.71 trillion, and Bitcoin’s dominance rate is 60.9%.