Auf-chain metrics are bullish for Bitcoin and Ethereum
Auf-chain metrics are bullish for Bitcoin and Ethereum
and showed several purchase signals from an on-chain perspective.
The central theses
- Bitcoin has experienced a significant increase in idle tokens that change the owner, which can lead to high volatility.
- The ETH offer on the stock exchanges has broken down while the prices are in the "chance zone".
- BTC and ETH could resume their upward trend soon if these on-chain metrics remain intact.
Bitcoin and Ethereum seem to be exposed to high volatility, since several on-chain metrics indicate that the purchase pressure increases. Nevertheless, these cryptocurrencies have to overcome an obstacle to resume the upward trend.
Bitcoin whales are back
Bitcoin and Ethereum could be ready for an upward trend.
Bitcoin recovered strongly after it had fallen under $ 41,000 on Sunday. The leading cryptocurrency was able to increase over 3,500 points after the steep correction and reached a high of $ 43,750 at the time of writing.
The TOKE Age Consumed index from Santiment recorded a significant increase in the idle BTC hand exchange on Sunday when prices fell.
This on-chain metric measures, how many coins have recently postponed addresses, multiplied by the number of days since the last shift. Although the movement of old tokens is not necessarily a leading price indicator, it has led to volatility tips in recent months.
If the story is repeated, Bitcoin could experience further volatility due to the latest token movements.
The behavior of the whales indicates that the upcoming increase in volatility could be upwards. In the last 24 hours, Wallets in the network with 100 to 10,000 BTC have added more than 80,000 BTC to their stocks worth 3.32 billion US dollars.
The sudden increase in upward pressure indicates that great investors are trying to buy with a discount to prepare for an upswing.
Although the opportunities for the bulls seem to speak, Bitcoin is facing strong resistance. The In/Out of the Money Around Price (Iomap) model from Intotheblock shows that 1.2 million addresses previously bought 1.05 million BTC between 43,150 and $ 45,670.
This owner could try to compensate for their underwater positions, as the prices are trying to continue to rise and contain the upward pressure. Therefore, only a crucial day of daily plug over this offer barrier could signal the beginning of a new upward trend.
On the other hand, the iOMAP cohorts show that the most important retaining wall under Bitcoin is between $ 41,830 and $ 43,000. Around 760,000 addresses maintain almost 430,000 BTC for this price level. Cutting through this demand zone could lead to a downturn to $ 39,000, since there is no other area of interest that could keep the falling prices in chess.
Ethereum looks undervalued
The number of Ethereum tokens that are held on cryptocurrency exchanges continues to decrease exponentially. In the last month alone, more than 1.35 million ETH were used up by trading platforms, which corresponds to a decline of 6.63 %.
The declining ETH offer on known cryptocurrency exchanges draws a positive picture for the future price growth of Ethereum. It technically reduces the number of ETH available for sale and thus limits the downward potential.
In addition, the Market Value to Realized Value (MVRV) index indicates that Ethereum is undervalued at the current price level. This fundamental index measures the average profit or loss of addresses that have acquired ETH last month. Every time the 30-day MVRV falls below 0 %, a bullish impulse tends to follow.
The 30-day MVRV ratio is now -8.6%, which indicates that the ETH is in the "chance zone". The lower the MVRV ratio becomes, the higher the likelihood of upward movement of the course.
Although Ethereum is sitting on a weak support, the transaction history shows that it only has to overcome an obstacle to resume the upward trend.
More than 1.2 million addresses have acquired about 8.6 million ETH between $ 3,185 and $ 3,275. A decisive candlestick closure over this resistance barrier could drive ETH towards $ 4,000 or new all-time highs.
Nevertheless, investors have to take a close attention to the level of support of $ 2,900, since all the signs of weakness could stimulate market participants for sale. Under such unique circumstances, Ethereum could fall to $ 2,500.