Bitcoin (BTC) was still struggling with a price below $ 50,000 on March 5 when a 10-year rise in government bond yields to 1.62%, the highest level in more than a year, weighed on global financial markets and hit particularly risky assets.

At the time of writing, the S&P 500 and Dow increased by 0.46% and 0.64%, but the technology sector has continued to sell as companies such as Apple and Tesla continue to decline.

Economists see an increase in bond yields as a result of improvements in the economy thanks to the introduction of the Covid-19 vaccine and the expectation that economic activity will pick up as coronavirus infections decline. The rise in interest rates has led some to speculate that the Fed may take control of the yield curve or take a stricter stance, but the central bank has so far refrained from changing its current plans.

Data from Cointelegraph Markets and TradingView show that bitcoin bulls tried to gather early on Friday, pushing the price 5.25% from a low level of $ 46,280 to an intraday high of $ 48,725. The $ 50,000 level has not yet been hit, as there is strong support, and traders are still looking for a daily close above $ 52,000 to confirm a rebound in bullish momentum.

Despite this week’s decline, investor optimism remains high after a record high in February when Bitcoin reached a total market value of $ 1 trillion and a new full-time high of $ 58,532. The price of Ether (ETH) has also held on for the past two weeks after reaching a new high of $ 2033, and now a full-time high of $ 2033 on February 20th.

After strong parity highs, there is usually a cooling-off period for trading within range and reconsiderations of lower support, and from a technical point of view, Bitcoin and Etheruem are in a consolidation phase.

Historical data shows Bitcoin is suffering in March
In 2021, Bitcoin has had the best annual start since 2013, but historical data shows that the price of BTC tends to fall from mid-February to the end of March. A recent report from Delphi Digital highlighted this trend, which has also been used on airwaves since 2018.

Bitcoin volatility will also increase in March, according to Delphi Digital analysts, which means that a further 20% price drop should not come as a surprise.

Despite recent adjustments of less than $ 50,000, Delphi Digital’s prospects are optimistic, with analysts saying that “nothing in the data or charts gives us any reason to believe that the BTC peak of this cycle has already passed.”

Messages say:

“Bitcoin’s break over $ 20,000 late last year was a strong confirmation of its bullish trend and was an important milestone. the miniaturization of the long-term BTC / USD chart looks very promising. ”
Analysts also speculated that Bitcoin could surpass gold in the future, as the YTD fall of 9.8% in precious metals was the worst in more than 30 years.

This may be due to the difference in cash flow between Bitcoin investment products and the world’s largest gold ETFs that have emerged in recent months. Delphi Digital hinted that gold is performing poorly: “BTC is likely to get more attention.”

New heights in general against the background of high sales in the market

While Bitcoin and most major cryptocurrencies are in the red today, there are some highlights this week.

Theta (THETA), a blockchain-based video streaming platform, saw prices rise to a new full-time $ 4.50 on March 4. SwissBorg (CHSB) rose 13.04% to a new high of $ 1.16.

Earlier today, Ether fell 6.24% to $ 1,481, with Polkadot (DOT) being the worst hit among the top ten, falling 10% to trade at $ 32.42.

The total market value of cryptocurrency is now $ 1.44 trillion, and the Bitcoin dominance is 60.7%.

Source: CoinTelegraph