Ethereum
What Bitcoin and Ethereum Trading Reveals About the Future of the Cryptocurrency Market
- A measure of exchange flow showed that the local floor could be reached for BTC and ETH.
- Market sentiment was not bullish and the behavior of holders at crucial support levels would be critical for the next price move.
Bitcoin [BTC] And Ethereum [ETH] The bulls have struggled to turn the market momentum in their favor. The significant losses over the last ten days mean that the price has returned to a support zone where buyers should stop the sellers.
Ethereum MVRV and NVT reports showed that the asset might be undervalued. The liquidity pocket at $3,500 could see a short squeeze, but otherwise the momentum would be bearish.
Meanwhile, another BTC survey showed that mining activity had retreated and miners were selling Bitcoin. However, the selling pressure had started to diminish in intensity over the past two days.
AMBCrypto decided to look at how both assets have performed since the exchanges to gauge market sentiment. This revealed that the bulls may not have much to cheer about yet.
What does the net trade flow metric indicate?
The net foreign exchange flows indicator provides valuable information about the market. When flows are positive, it indicates that inflows are greater.
This in turn is a sign of potential selling pressure on the asset, as it involves participants sending crypto to exchanges to sell.
Values below zero mean that outflows are larger, which is a good sign for buyers.
This indicates that market participants are withdrawing their assets from exchanges, likely to store them in safer locations, and indicates accumulation.
Source: CryptoQuant
The 30-day simple moving averages have been used to better understand trends in foreign exchange flows. ETH inflows were considerable in mid-March and towards the end of May.
Both events marked a local high for the price.
Over the past month, net flow has been strongly negative, showing accumulation. Over the past eight days, outflows have slowed, but 30DMA net flow has remained in negative territory.
Source: CryptoQuant
Meanwhile, Bitcoin saw steady accumulation in February and March. The 30DMA showed that the flow of BTC out of exchanges continued to dominate.
In late April and May 21, there were spikes in BTC inflows, but these were exceptions to the trend.
Are Bitcoin and Ethereum Heading for Consolidation?
Source: In the block
AMBCrypto’s review of IntoTheBlock’s coin in/out data highlighted key regions of support.
The inflows/outflows around the price have shown that Ethereum has a strong support base between $3,080-$3,180 and $3,280-$3,381. Similarly, the $3,486-$3,586 range also acts as a strong resistance.
Source: In the block
Read Bitcoin [BTC] Price forecast 2024-25
For Bitcoin, the range of $59,450 to $61,263 is support and resistance is $63,148 to $64,960.
This means that the current price consolidation of these two cryptocurrency market leaders could be confined to these levels and lead to the formation of a range.