Bitcoin
BTC$70 549.88

3.00%

Ethereum
ETH$3 558.87

2.67%

Tether
USDT$0.999961

0.05%

Binance Coin
BNB$581.56

2.48%

Solana
SOL$185.81

2.06%

XRP
XRP$0.629771

3.31%

Bitcoin price dips below $60000. But here's why a bigger rally may be brewing


15 Mar 2021

#Bitcoin

Bitcoin (BTC) pared some gains, dipping below $60,000 on March 14, a day after setting a new all-time high of $61,950 on Binance. However, on-chain data indicates that the uptrend is likely to continue in the near term. One key metric that is signaling an optimistic short-term trend for Bitcoin is the rise in stablecoin deposits into exchanges. Although high funding rates and an overcrowded market are causing the price to pull back, the entrance of sidelined capital into the crypto market may further boost Bitcoin’s momentum. When Bitcoin enters price discovery and hits a new record-high, the interest in the market naturally spikes. There is a lot of liquidity in the current red-hot market, making it an ideal period for whales and high-net-worth investors to take profit on their positions.

But despite, the halt in the rally, stablecoin inflows into exchanges are rising once again, according to the latest data from CryptoQuant. In the crypto market, traders often hedge their holdings against stablecoins like Tether (USDT) and USDC, rather than cashing out via withdrawals to bank accounts. Typically, exchanges have a three to seven-day processing period for cash deposits, and when traders want to re-enter the cryptocurrency market, moving cash from their bank accounts back to exchanges becomes cumbersome. Hence, when stablecoins begin to flow into exchanges again — as seen by the green spikes in the chart above — it suggests that sidelined capital may be looking to get back into Bitcoin.

When Bitcoin rallies without a noticeable rise in stablecoin inflows, it increases the probability of an unsustainable uptrend and a short-term correction. If the trend of sidelined capital moving back into the crypto market continues, there is a high probability that this will further fuel Bitcoin’s momentum resulting in a broader rally.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 78.8% 43 $70 549.88 3.00% 8.27% $1 387 494 788 714 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 76.8% 48 $3 558.87 2.67% 3.84% $427 320 303 389 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $0.999961 0.05% 0.02% $104 450 060 275 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 60% 80 $581.56 2.48% 6.11% $86 964 779 028 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 56.8% 89 $185.81 2.06% 3.93% $82 554 709 619 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 79.6% 30 $0.629771 3.31% -0.48% $34 564 529 747 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 92.4% 2 $1.000062 0% 0% $32 292 135 993 USDC 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 64% 68 $0.219561 20.82% 46.58% $31 541 252 554 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 66% 67 $0.649764 1.83% 3.99% $23 119 704 162 ADA 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 59.6% 88 $54.41 1.81% 1.88% $20 533 847 583 AVAX 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 56.8% 94 $0.000032 5.79% 17.12% $18 596 655 821 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 58.8% 88 $4.90 -1.11% 20.64% $17 014 430 701 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 71.6% 52 $9.46 1.54% 3.44% $13 498 790 542 DOT 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 77.2% 42 $19.16 0.31% 5.06% $11 246 466 874 LINK 7 days price change
15 Bitcoin Cash (BCH) BCH Bitcoin Cash predictions 69.2% 60 $569.65 6.10% 38.03% $11 211 669 006 BCH 7 days price change

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