The main cryptocurrency on the market, Bitcoin (BTC), is quoted this Wednesday morning, 03/27/204, at R$ 349,391.92. Bulls are holding BTC price at $70K for the third day in a row, this sideways movement suggests a breakout soon, which could be a rally to a new ATH or a drop back to the $68K support.
Capitalization stabilized around the $2.63 trillion level, losing 1.7% in 24 hours, but very close to where it was at the end of the day on Monday. Bitcoin fell 1.2%, Ethereum lost 2.3%, BNB sank 3% and Solana fell 4%. Superficially, the trend is for a deeper retreat in the currencies that have risen the most in recent days.
“The short-term focus for traders will be to see if Bitcoin can retest Tuesday’s intraday lows near $69,500. A break below this level could signal a more prolonged correction,” highlighted Alexander Kuptsikevich .
He also points out that the strength of the dollar has limited any further gains in Bitcoin, as traders remained largely biased against the dollar ahead of further signals on US interest rates. The dollar index remained within sight of a one-month high on Wednesday.
However, despite the decline, CryptoQuant experts highlight that monthly demand for Bitcoin has increased by 40,000 BTC at the start of the year to a whopping 213,000 BTC now.
This increase in demand is driven by a number of reasons, such as increased interest from institutional investors and an increasing amount of accumulation addresses. However, this increase in need is not accompanied by a corresponding increase in sell-side liquidity.
According to the company, the main factor behind the increase in demand for Bitcoin is institutional investments from US Bitcoin spot ETFs. These Bitcoin spot ETFs have seen a significant increase in Bitcoin holdings. This demonstrates the growing appetite among institutional investors to invest in digital currency.
Furthermore, Large investors known as “whales” notably increased their Bitcoin holdings, intensifying the scarcity of available funds. At the same time, Bitcoin sell-side liquidity is experiencing a downward trend.
The total visible amount of Bitcoin held by major entities has drastically decreased, reaching a historic low. This imbalance between increased demand and decreased liquidity on the sell-side has resulted in a severe liquidity crisis, with estimates suggesting that current liquidity levels may only satisfy demand for the next twelve months.
Analyst Fernando Pereira, content manager at Bitget, points out that BTC has broken a bearish flag and is heading towards its all-time high, where there are 50 million dollars to be liquidated.
“It seems like a lot of money, but it’s not. The market has lower liquidity at the moment, showing that interest is decreasing. A sign of consolidation”, he states.
Therefore, the price of Bitcoin on March 27, 2024 is R$349,391.92. At this value, R$1,000 buys 0.0029 BTC and R$1 buys 0.0000029 BTC.
The cryptocurrencies with the biggest increase on March 27, 2024, are: Mantle (MNT)Fetch.ai (FET) and SingularityNET (AGIX) with increases of 44%, 16% and 13% respectively.
The cryptocurrencies that are registering the biggest drops on March 27, 2024, are: Kaspa (KAS), Ondo (ONDO) and Bittensor (TAO) with drops of -9%, -7% and -6% respectively.
What is Bitcoin?
Bitcoin (BTC) is a digital currency, which is used and distributed electronically. Bitcoin is a decentralized peer-to-peer network. No person or institution controls it.
Bitcoin cannot be printed and its quantity is very limited – only 21 million Bitcoins can be created. Bitcoin was first introduced as open source software by a programmer or group of anonymous programmers under the codename Satoshi Nakamoto in 2009.
There have been many rumors about the real identity of the creator of BTC, however, all the people mentioned in these rumors have publicly denied being Nakamoto.
Nakamoto himself claimed to be a 37-year-old man living in Japan. However, because his English is perfect and his software was not developed in Japanese, there are doubts about this information. Around mid-2010, Nakamoto moved on to other things and left Bitcoin in the hands of some prominent members of the BTC community.
For many people, Bitcoin’s main advantage is its independence from world governments, banks and companies. No authority can interfere with BTC transactions, import transaction fees, or take money from people. Furthermore, the Bitcoin movement is extremely transparent – every single transaction is stored in a large, public, distributed ledger called the Blockchain.
Essentially, because Bitcoin is not controlled as an organization, it gives users complete control over their finances. The Bitcoin network shares a public ledger called “block chain”.
If someone tries to change just one letter or number in a block of transactions, it will also affect all blocks that follow. Because it is a public book, an error or attempted fraud can be easily detected and corrected by anyone.
The user’s wallet can check the validity of each transaction. The signature of each transaction is protected by digital signatures corresponding to the shipping addresses.
Due to the verification process and depending on the trading platform, it may take a few minutes for a BTC transaction to be completed. The Bitcoin protocol is designed so that each block takes about 10 minutes to mine.
Disclaimer: This is not an investment recommendation and the opinions and information contained in this text do not necessarily reflect the positions of Cointelegraph Brasil. Each investment must be accompanied by research and the investor must be informed before making a decision.
