Bitcoin (BTC) price fell to $ 50,400, affected by the expiry of the $ 6.1 billion option contract as of today.
The decline did not come as a surprise to many traders, and some experts suggested that the $ 47,000 support level could be tested. Although Bitcoin loses its short-term bullish momentum, various derivative indicators, including futures premiums, suggest the price will not drop below $ 50,000.
While technical indicators offer mixed results for Bitcoin’s short-term price action, the digital asset climbed back to $ 52,000 levels. Leading asset funds are said to continue to open BTC positions.
Analysts point to “oversolding”
Glassnode co-founder and CTO Rafael Schultze-Kraft recently highlighted a drop of between $ 51,100 and $ 54,000.
Not much #Bitcoin realized between here and $51k. Would not be surprised if we dipped a bit more.
Strongest on-chain support currently at $47,400.https://t.co/3GFPTQPp6F pic.twitter.com/NLBQvEIGfB
– Rafael Schultze-Kraft (@ n3ocortex) March 22, 2021
He sent after the fall on Thursday tweetSchultze-Kraft stated that he did not evaluate the decline as “unexpected” and that the overall picture is still on the upside.
“Structurally, nothing has changed. I haven’t seen any data indicating a long-term decline yet.”
Bitcoin’s highest declining liquid supply in more than 6 months provides evidence of a possible reversal in the near term.
This indicates that a large number of BTC has withdrawn from the circulating supply, the bulls are preparing for the price to rise, making transfers to cold wallets for long-term investment.
Altcoins see lower dips
Most of the altcoins have been heavily affected by the Bitcoin sale, while traders in the market are exiting positions to protect their final gains.
One of the prominent altcoins was Aragon (ANT), which led the rise in decentralized finance (DeFi) and non-fungible tokens (NFT).
Holochain (HOT) and Balancer (BAL) also gained 5.2 percent and 6.4 percent, respectively.
The total value of the cryptocurrency market is currently $ 1.62 trillion and Bitcoin’s dominance rate is 59.4 percent.
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