Bitcoin’s (BTC) price climbed higher to $57,402, a level is last seen on Feb. 20 when Bitcoin clocked a new all-time high at $58,367. Bitcoin’s price rise on Wednesday marks the sixth straight day in a row. Bitcoin bounced off a low of $53,025 and proceeded to rally to a two-week high.
The news that Digital Currency Group intends to buy up to $250 million shares of the Grayscale Bitcoin Trust (GBTC) alluded to Bitcoin’s recent climb. The next target for Bitcoin bulls remains at the $58,367 record high, followed by the psychological level of $60,000.
As Bitcoin traded higher, selected Altcoins also chased after new all-time highs. Theta (THETA), NFTs related token, rallied 20.51 % over the past 24-hours to reach a new all-time high of $6.42. FTX Token (FTT) also clocked a new all-time high of $38.08 on Mar. 10. Hedera Hashgraph (HBAR) token extended its leg higher to $0.2248 today, gaining 13.88% within 24 hours.
Conversely, at the time of writing, the Altcoin market led by Ethereum takes a brief retreat after a massive rally. Ethereum (ETH) presently trades at $1,809 down by 1.63% in the last 24 hours. XRP, NEM ,Chiliz recorded declines of 3.58%, 18.59%, 12.46% respectively. DeFi tokens led by UniSwap also witnessed profit-taking. UniSwap is down by 4.89% in the last 24 hours while Fantom (FTM), Pancakeswap (CAKE), Band Protocol declined by 11.41%, 7.61%, 5.67% respectively.
BTC/USD Daily ChartSurprisingly, Bitcoin forks including Litecoin, Bitcoin Cash, Bitcoin Gold continued their bullish trading. Bitcoin presently trades at $56,874.
On March 12th, 2020, Bitcoin and the rest of the crypto market plunged severely in a black swan event. Bitcoin shed almost 50% of its market value, hitting bottom lows of $3,800.
This question however remains in the minds of traders- will Bitcoin crash again? If the scenario of the March 2020 carnage repeats itself, this may imply Bitcoin crashing to around $29k, if taken from highs of $58k.
Blockchain data might give traders solace that prices aren’t likely to revisit this level anytime soon. It may also be important to note that for now, Bitcoin remains bullish indicating no signs of an impending selloff.
Bitcoin Outflows From Coinbase Pro. Courtesy: CryptoQuantFresh data extracted from the Bitcoin blockchain suggests the risk of a huge selloff might be capped on the downside by buyers who seem to enter the market whenever prices plunge to around $48,000.
CryptoQuant indicated that dips in Bitcoin prices to about $48,000 over the past month coincided with unusually large withdrawals from wallet addresses linked to the Coinbase Pro segment. Ki-Young Ju, CryptoQuant’s CEO deduced that these outflows “might be institutional deals through Coinbase’s over-the-counter (OTC) service or Coinbase prime,”.
This may signify that the institutional investors might be moving their Bitcoins off Coinbase Pro into so-called “cold wallets,” typically because they have little intention of selling anytime soon.
Image Credit: CryptoQuant, Shutterstock
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