Bitcoin
BTC$61 393.62

1.16%

Ethereum
ETH$4 171.66

5.07%

Binance Coin
BNB$485.63

1.44%

Cardano
ADA$2.17

0.55%

Tether
USDT$1.000858

0.10%

Solana
SOL$197.70

0.65%

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 64.8% 74 $61 393.62 1.16% 0.83% $1 157 410 091 263 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72.4% 59 $4 171.66 5.07% 8.92% $492 462 196 227 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 70.8% 62 $485.63 1.44% 4.21% $81 003 906 943 BNB 7 days price change
4 Cardano (ADA) ADA Cardano predictions 87.2% 13 $2.17 0.55% -0.57% $71 272 162 809 ADA 7 days price change
5 Tether (USDT) USDT Tether predictions 91.6% 1 $1.000858 0.10% 0.08% $69 633 809 415 USDT 7 days price change
6 Solana (SOL) SOL Solana predictions 73.2% 57 $197.70 0.65% 25.50% $59 473 993 983 SOL 7 days price change
7 XRP (XRP) XRP XRP predictions 74% 49 $1.094497 0.56% -3.58% $51 382 650 889 XRP 7 days price change
8 Polkadot (DOT) DOT Polkadot predictions 64.4% 81 $44.05 1.38% 5.54% $43 502 840 639 DOT 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 69.2% 56 $0.251733 3.08% 6.09% $33 181 970 119 DOGE 7 days price change
10 USD Coin (USDC) USDC USD Coin predictions 93.2% 1 $1.001199 0.09% 0.12% $32 582 792 876 USDC 7 days price change
11 Terra (LUNA) LUNA Terra predictions 68.8% 64 $43.19 -0.98% 18.00% $17 337 793 703 LUNA 7 days price change
12 UniSwap (UNI) UNI UniSwap predictions 80.4% 41 $26.81 4.59% -0.80% $16 400 871 282 UNI 7 days price change
13 Chainlink (LINK) LINK Chainlink predictions 74.4% 44 $31.43 9.66% 15.36% $14 490 192 645 LINK 7 days price change
14 Avalanche (AVAX) AVAX Avalanche predictions 68.8% 60 $65.44 -0.09% 13.84% $14 415 133 233 AVAX 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 65.6% 75 $61 406.63 1.11% 0.83% $13 619 540 827 WBTC 7 days price change

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