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.
Why Bitcoin dropped after $60K breach
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.
Bitcoin funding rates. Source: Bybt.com
Filbfilb, a pseudonymous trader and technical analyst, noted that high futures market funding rates and Bitcoin deposits into exchanges were spotted beforeTitle: Bitcoin price dips below $60K — But here’s why a bigger rally may be brewing
Sourced From: cointelegraph.com/news/bitcoin-price-dips-below-60k-but-here-s-why-a-bigger-rally-may-be-brewing
Published Date: Sun, 14 Mar 2021 14:10:05 +0000