Bitcoin continued to trade sideways on Monday morning at around $ 57,500. The price follows a week of fairly stable price levels above $ 54,000.
#Bitcoin is still holding up onto this scenario and stuck in a sideways range.
As long as $55K holds, I'll assume we'll test for new highs. pic.twitter.com/Os3p7H3W6b
— Michaël van de Poppe (@CryptoMichNL) March 22, 2021
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In fact, Bitcoin has been trading fairly horizontally for several weeks. Bitcoin started the month of March at around $ 49,000 and peaked at $ 61,000 on March 14. On the same day, Binance CEO Changpeng Zhao (aka CZ) wrote, “I’m not sure, but I’m already used to $ 60,000. Why is #bitcoin only going sideways?”
I’m not sure, but I’m already used to $ 60,000. Why is #bitcoin only going sideways? 😂
– CZ 🔶 Binance (@cz_binance) March 14, 2021
Some analysts say Bitcoin’s relatively steady price level in March could be a sign of consolidation. In other words, buyers may become indecisive about the next move in the price of Bitcoin and may hesitate to take any action to buy or sell before BTC’s path is revealed.
Dear # Bitcoin… go sideways for as long as you have to.
We’re fine. «
– Girl Gone Crypto (@girlgone_crypto) March 22, 2021
Bullish indicators on the horizon?
However, there are several signs that Bitcoin traders are not ready to sell their coins anytime soon. This could be an indication that the price of BTC isn’t due for a significant drop in the near future.
Finance Magnates previously reported that Bitcoin “is facing a serious liquidity crisis as BTC whales fail to move their digital assets”. Only 36% of Bitcoin supply has moved in the past six months.
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Interestingly, data from Santiment shows that larger Bitcoin whales (at 1,000-10,000 BTC) are holding onto their coins, while smaller Bitcoin whales (at 100-1,000 BTC) are selling their coins.
“Big Bitcoin whales are piling up, small whales are selling,” wrote market analyst Joseph Young on Twitter with the caveat that 1,000 to 10,000 BTC whales could be exchanged. “Which side do you want to be on?” He asked.
Big Bitcoin whales are accumulating, small whales are selling.
Which side do you want to be on? $ BTC pic.twitter.com/ZaklDZ9Tzq
– Joseph Young (@iamjosephyoung) March 22, 2021
In addition, the Bitcoin Fear and Greed Index, which measures the likelihood of BTC hodlers selling their coins (fear) or Hodl (greed), in the direction of “greed” shows.
The Bitcoin Fear and Greed Index is 70 – Greed pic.twitter.com/lqP9clKNrQ
– Bitcoin Fear and Greed Index (@BitcoinFear) March 22, 2021
Additionally, Forbes reported that approximately $ 6 billion worth of Bitcoin options contracts at today’s prices will expire on Friday. Options contracts allow investors to buy or sell the cryptocurrency at a specific price within a specified period of time.
Pankaj Balani, the chief executive of the Singapore-based Delta Cryptocurrency Exchange, said Forbes that: “The expiration dates suggest an optimistic outlook. The decline is significantly larger than the previous record, a $ 4 billion decline in late January 2021.