24 January 2021

Bitcoin Dip

Institutions Buy the Bitcoin Dip

It has been a rocky ride for the cryptocurrency market over the last 24-hours as the Bitcoin dip once again brings one of the biggest price corrections so far in 2021. On late Thursday, January 21, BTC crashed below $30,000 levels losing more than 13% in a flash.

Bitcoin has partially recuperated from the fall and is currently trading at $32,975 with a market cap of $613 billion. Guess what, who must have made the most of the Bitcoin dip? Well, it’s the institutional players again at the play.

  1. In its recent filing submitted to the U.S. SEC, business intelligence firm MicroStrategy announced that it bought 314 Bitcoins worth $10 million at an average of $31,808 per bitcoin. The firm now holds 70,784 Bitcoins in total including its past purchases.
  2. Grayscale Bitcoin Trust (GBTC) added another 1000 Bitcoins to its kitty on Thursday, January 21. Since the 14th of this month, Grayscale has purchased nearly 36,000 Bitcoins pouring over $1.5 billion. The firm has also raised $1.2 billion as updated by CEO Michael Sonnenshein.
  3. Ex Goldman Sachs manager and popular investor Raoul Pal said that he has started further BTC accumulation during the recent Bitcoin dip. He has also advised Bitcoin HODLers to consider the same.

Interestingly, the chart presented by Glassnode also shows that the total number of Bitcoin withdrawals at the exchanges has hit an 18-month high of 2930.875.

Bitcoin Dip
Courtesy of Glassnode

On the other hand, after taking a dive below $1050 levels on Thursday’s correction, Ethereum (ETH) has crawled back to $1238 levels at press time with a market cap of $140 billion.

If we see the technical chart below from Trading View, the ETH/USD trading pair is clearly above the 21-day moving average. If the ETH price surges further, it can move past the 9-day moving average of $1250.

Ethereum price prediction
Courtesy of Trading View

On the lower side, the first technical support stands at $1100. However, if ETH falls beneath it, it can turn to be even more bearish and the next support levels are placed at $800, $700, and so on.

Lesser-Known Altcoin Prices Surge and Weekly Crypto Picks

After Thursday’s overall market correction, altcoins are back in action. Polkadot (DOT) is up 14.37% at press time trading at $17.24 while extending its weekly gains to above 30%.

Cardano’s ADA is up 12.35% trains at $0.35. Litecoin (LTC) is up 9.37% at $138 while Chainlink (LINK) is up 18.20% trading at $21.82 levels.

Let’s take a look at some of the lesser-known altcoins which have made a strong move currently and are also our weekly crypto picks.

Decentralized exchange and automated market maker (AMM) SushiSwap (SUSHI) is up more than 21.7% at press time trading at $6.76 levels. As per the SushiSwap Holders Distribution data provided by Santiment, SUSHI tokens have made a strong bounce back with higher whale participation. The SushiSwap addresses with more than 100K tokens have surged rapidly in recent times.

Ethereum price prediction
Courtesy of Santiment

Another weekly crypto pick is ERC20-based data toke Ocean Protocol (OCEAN). The OCEAN token is currently trading 6.54% up at $0.51 with a market cap of $221 million.

Ocean Protocol is a blockchain-based ecosystem allowing individuals and businesses to monetize their data while preserving privacy and control over it. Data on the Ocean Protocol is available in the form of data tokens.

The Ocean Protocol allows users to access data that is unavailable and challenging to get. Thus, it leverages blockchain technology to protect and monetize one of the most important parts of the internet industry I.e. data.

Apart from interesting use-cases in Web 3.0, Artificial Intelligence, and IoT, the Ocean Protocol finds a very useful application in the decentralized finance (DeFi) market to meet some compliance regulations of KYC and AML.

Ocean Protocol will continue to grow as a DeFi project in 2021. By Q2 2021, it plans for Initial Data Offering (IDO) with update smart contracts. Whereas, it also plans to bring Ocean data farming by Q2 2021.

Another crypto weekly pick is ThorChain (RUNE). At press time, RUNE is trading 29.62% up at $2.13 with a market cap of $333 million. ThorChain is a decentralized liquid network allowing users to swap assets at manipulation-resistant market prices. Thus, it is kind of a cross-chain liquidity protocol allowing users to trade crypto across chains, RUNE is the native token.

A week back ThorChain joined hands with SushiSwap thereby releasing an Ethereum-based version of RUNE and thus make “inroads into the Ethereum Defi community”.

Our last weekly crypto pick is Wrapped CrescoFin (wCRES) which is up more than 20% on weekly charts. At press time, wCRES is trading at $6.88. CrescoFin is an alternative to the traditional banking system that offers high-interest bank account alternatives to everyone.

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