On March 3, Bitcoin rose from around $47,500 to above $52,000.
As of writing, the price on Bitstamp stood at $52,360.
Data: TradingView.
The price of Bitcoin crashed at the start of last week, to around $45,000.
Against the backdrop of the decline, analysts from the crypto-trading platform CrossTower said that interest from major investors in Bitcoin would continue to support the asset’s price above $50,000.
In late February, CryptoQuant recorded sizable Bitcoin outflows from Coinbase, the U.S. exchange oriented toward institutional investors. According to the firm’s CEO Ki Young Ju, these were purchases of digital gold on the price decline conducted on the over-the-counter market.
“This is the strongest bullish signal I have ever seen,” said the CryptoQuant head at the time.
On March 3, CryptoQuant researchers noted another large Bitcoin outflow from Coinbase.
\n
Whales accumulating $BTC.
\n
They are making a lot of bear traps lately, but the price seems to recover the institutional buying level, 48k.
\n
Looking at recent Coinbase outflows, most of the outflows that went to custody wallets were at 48k price.
\n
Chart 👉 https://t.co/20Dz85Y5mG https://t.co/28WZDD0v2h pic.twitter.com/KFSF4mcRra
\n
— Ki Young Ju 주기영 (@ki_young_ju) March 3, 2021
\n
Analyst Lex Moskovski regards the exchange balances in Bitcoin, which are at a three-year low, as a positive signal for the price.
\n
Amount of #Bitcoin on exchanges has updated its low that currently is the lowest of a 3 year period.
\n
Sell-side crisis, work in progress. pic.twitter.com/MciBpDZ8cy
\n
— Lex Moskovski (@mskvsk) March 3, 2021
\n
Colin Wu drew attention to another sign of a bull market — Bitcoin’s implied volatility has fallen to levels seen at the start of January.
\n
Bitcoin is back above 50000$, an increase of over 5% in the day, the current implied volatility of BTC is decreasing to the level in early January, and the decline in implied volatility usually means that the market is bullish. Image source: @cryptounfolded pic.twitter.com/e74SMdGRX8
\n
— Wu Blockchain (@WuBlockchain) March 3, 2021
\n
JPMorgan analysts suggested that Bitcoin would not be able to hold the record price above $50,000 until volatility declines significantly.
Follow Forklog news on Facebook!