According to veteran analyst Ali Martinez, Bitcoin and Ethereum are giving multiple buy signals from a chained perspective.
- According to the analyst, Bitcoin has seen a significant increase in empty tokens changing hands, which could result in high volatility.
- Prices are in the “opportunity zone” while the supply of ETH on exchanges is falling.
- If these on-chain metrics remain intact, BTC and ETH could resume their uptrend soon.
Bitcoin and Ethereum seem to be tied to high volatility as several on-chain metrics show buying pressure is accelerating. Still, according to the analyst, these cryptocurrencies need to break a hurdle to continue the uptrend.
Bitcoin whales are back! Here’s what they can be
According to veteran analyst Ali Martinez, Bitcoin and Ethereum could be ready for a bullish move. Bitcoin was able to gain over 3,500 points after the steep correction. Santiment’s Token Age Consumed index has seen a significant increase in BTC, which has changed hands over the past few hours as prices plummeted. This on-chain metric measures the number of days last moved and how many coins have been moved recently. While the movement of legacy tokens is not necessarily a leading price indicator, it has caused spikes in volatility over the past few months.
If history repeats itself, Bitcoin may experience more volatility due to recent token movements. The whales’ behavior indicates that the incoming increase in volatility may be on the upside, according to the analyst. In the past 24 hours, wallets with 100 to 10,000 BTC on the network have added more than 80,000 BTC worth $3.32 billion to their holdings. The spike in upward pressure indicates that large investors are trying to buy at a discount as they prepare for the uptrend.
Analyst warned: Bitcoin price may fall to these levels!
While the rates seem to support the bulls, Bitcoin is facing stiff resistance ahead. The IOMAP model shows that 1.2 million addresses previously purchased 1.05 million BTC between $43,150 and $45,670. These holders may be trying to break even in underwater positions as prices try to move further by controlling the upside pressure. Therefore, only a decisive daily candlestick above this supply barrier could signal the start of a new uptrend.
On the other hand, according to the analyst, the IOMAP cohorts reveal that the most important support wall under Bitcoin is between $ 41,830 and $43,000. About 760,000 addresses hold about 430,000 BTC at this price level. Breaking this demand zone could result in a drop to $39,000 as there is no other area of interest that could prevent prices from falling.
Ethereum (ETH) on exchanges is decreasing! “This is a bullish sign”
The number of Ethereum tokens held on cryptocurrency exchanges continues to decline at an exponential rate. Over the past month alone, more than 1.35 million ETH has been exhausted from trading platforms, representing a 6.63% drop. The dwindling supply of ETH in known cryptocurrency exchange wallets paints a positive picture for Ethereum’s future price increase. It technically reduces the number of ETH that can be sold and as a result limits the downside potential.
Also, according to the analyst, the Market Value to Realized Value (MVRV) index shows that Ethereum is undervalued at current price levels. This underlying index measures the average profit or loss of addresses that bought ETH in the past month. Every time the 30-day MVRV moves below 0%, a bullish impulse tends to follow. The 30-day MVRV rate is currently hovering at -8.6%, which indicates that ETH is in the “opportunity zone,” according to the analyst. The lower the MVRV ratio, the higher the probability of an upward price movement.
Analyst: The $3,185 to $3,275 zone is critical for Ethereum
Although Ethereum is sitting above weak support, its trading history shows that there is only one hurdle it needs to overcome to continue the uptrend. More than 1.2 million addresses bought around 8.6 million ETH between $3,185 and $3,275. A decisive candlestick above this resistance barrier could push ETH towards $4,000 or new all-time highs.
Still, investors should be very careful with the $2,900 support level as any signs of weakness around this level could encourage market participants to sell. Under these unique conditions, Ethereum could drop to $2,500.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.