Bitcoin
BTC$29 380.18

-3.28%

Ethereum
ETH$1 959.56

-5.15%

Tether
USDT$0.998958

-0.01%

USD Coin
USDC$1.000329

0.03%

Binance Coin
BNB$321.57

-3.53%

XRP
XRP$0.403749

-5.20%

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 61.2% 87 $29 380.18 -3.28% -2.43% $559 642 402 733 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 59.2% 88 $1 959.56 -5.15% -4.83% $236 921 809 457 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.4% 1 $0.998958 -0.01% 0.02% $73 198 714 964 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000329 0.03% -0.01% $53 273 212 846 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 61.2% 88 $321.57 -3.53% 6.21% $52 504 644 349 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 58% 91 $0.403749 -5.20% -5.34% $19 518 470 146 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 92.8% 1 $0.999393 -0.21% -0.08% $18 312 587 333 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 59.2% 93 $0.515615 -6.46% -10.22% $17 403 339 497 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 60% 91 $50.05 -7.03% -9.13% $16 981 972 785 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 58% 90 $0.082722 -5.26% -7.04% $10 974 841 808 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 60.4% 90 $9.97 -5.87% -7.56% $9 850 001 505 DOT 7 days price change
12 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 57.2% 87 $29 401.79 -3.22% -2.31% $8 132 620 498 WBTC 7 days price change
13 TRON (TRX) TRX TRON predictions 73.2% 56 $0.081939 7.58% 16.52% $7 754 289 182 TRX 7 days price change
14 Avalanche (AVAX) AVAX Avalanche predictions 58.4% 93 $28.73 -10.25% -14.09% $7 737 939 953 AVAX 7 days price change
15 Dai (DAI) DAI Dai predictions 90.8% 1 $1.000302 -0.03% 0.01% $6 573 514 573 DAI 7 days price change

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