Bitcoin price rejection near its all-time high of $ 58,000 triggers a selloff of altcoins

Optimism continues to creep into the cryptocurrency sector as Recent gains in Bitcoin (BTC) have helped drive the top-ranked cryptocurrency’s valuation beyond that of the South Korean won.

Data from Cointelegraph Markets and TradingView show that Bitcoin price experienced a selloff early in the day that dragged the price to a low of $ 54,948 before the bulls momentarily pushed the price back above $ 57,000.

4-hour chart of the BTC / USDT pair. Source: TradingView

Regardless of Bitcoin’s price action, institutional investors have consistently expressed their interest in BTC. The present day, MicroStrategy ad that he had bought another 262 BTC at an average price of $ 57,146, bringing the company’s total holdings to 91,326 BTC.

According David Lifchitz, ExoAlpha chief investment officer, price action in the coming days “It will show whether Bitcoin is ready to hit new heights or if a pullback is coming.”

Lifchitz noted that the price of BTC fell slightly on Friday after stalling “just a few basis points below its all-time high”, probably due to profit-taking “from those who monetized the 10% profit from $ 45,000 to $ 57,000.”

Bullish indicators for Bitcoin identified by Lifchitz include the interest of institutional buyers around the $ 45,000 level and the stimulus package recently approved by President Biden that, according to him, “can go directly to the purchase of cryptocurrencies.”

Lifchitz admitted that even though the price of Bitcoin is in a long-term uptrend, there are some reasons for a more bearish outlook in the short term. Some factors to consider are the upcoming US tax season, That could lead some investors to sell part of their holdings as a way to raise money to pay taxes on profits made during 2020.

Another short-term bearish factor identified by Lifchitz was the possible spillover effect that could result from the sale of traditional assets that “stretch to any extent and may see some short-term profit-taking.”

Overall, Lifchitz concluded:

Sideways consolidation is likely here in the short term before a possible breakout to a new all-time high if the pullback holds firm as described above.

Investors rush to buy non-fungible tokens

Non-fungible tokens continue to be the hot topic in the cryptocurrency space after the March 11 record sale of Beeple’s NFT auction for over $ 69.3 million.

Chiliz (CHZ) is the star of today, With $ 5.55 billion in 24-hour trading volume, the fan engagement blockchain-based platform raised its price by 82% to a new all-time high of $ 0.59.

CHZ / USDT 4-hour chart. Source: TradingView

VORTECS ™ data from Cointelegraph Markets Pro began to detect a bullish outlook for CHZ on March 10, ahead of the recent price surge.

The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market, trade volume, recent price movements, and Twitter activity.

VORTECS ™ score (green) versus CHZ price. Source: Cointelegraph Markets Pro

As can be seen in the previous graph, the VORTECS ™ score increased from a low of 49 on March 8 to a high of 84 on March 10, approximately 24 hours before the price rose 175% and set a new all-time high two days later.

Decentralized finance projects have been in a consolidation phase of late following substantial gains during the first two months of 2021, meanwhile, major decentralized exchange platforms and DeFi are exploring options like cross-chain bridges and layer 2 solutions to make you versus high transaction costs on the Ethereum (ETH) network.

Polygon (MATIC) and SKALE (SKL) are two Ethereum scaling solutions that have outperformed other altcoins this week after both tokens posted increases close to 100% after being listed on Coinbase on March 9.

Daily performance of the cryptocurrency market. Source: Coin360

In general, the cryptocurrency market has come under some pressure going into the weekend. The pullback is likely the result of Bitcoin’s price rejection near its all-time high rather than a trend reversal signal, but nonetheless, most large-cap cryptocurrencies have fallen between 2% and 10%.

The total cryptocurrency market capitalization is currently $ 1.71 trillion and Bitcoin’s dominance is 62%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Each investment and commercial movement involves risks, you must do your own research when making a decision.

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