Crypto Bull Run Halts, As Bitcoin Seeks Support Just Above €48k

March 16, 2021 | AtoZ Markets Despite all-time highs of over €51k on Saturday Bitcoin has given up all gains. However, the bellwether crypto is getting ready for an upswing above €50,000, as the TD sequential indicator presented a buy signal.

Prices for the largest cryptocurrency surged on Saturday, only to quickly pullback in the days following. Bitcoin sank almost 7% on Monday and remains relatively unchanged on Tuesday. At the time of writing the digital asset is trading around €46,679. It appears that BTC has secured a support just above €48,000 and its immediate upside has been capped under 50 Simple Moving Average (SMA).

According to Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore,“the volatility that exists is partially due to investors taking some profit after the recent bull run.” He further predicted an upswing past €52k.

Despite losing momentum, the Bitcoin perpetual funding rate, which is the cost of HODling long positions calculated every 8 hours has seen a sharp drop from 0.124% to 0.08% indicating that the crypto market looks ready for a fresh move higher. This comes after excess bullish leverage was wiped out by the BTC’s pullbacks at the start of the week.

Data presented by coindesk showed that long trades worth $1.16 billion were liquidated on Monday. This is the highest since Feb 22nd.

The current craze is rolling over into the stock market and with lower funding rates a more lasting move toward new milestones could unfold. Despite the current drops the long-term outlook looks bullish, as Atichanan Pulges, chief financial officer of Bitkub Capital Group Holdings Co. cites “more financial institutions are considering adopting crypto”.

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