Markets
What Bitcoin and Ethereum Exchange Flows Say About the Future of the Crypto Market
- An exchange flow metric showed that the local bottom may be towards BTC, ETH.
- Market sentiment was not bullish and the behavior of holders at crucial support levels would be key to the next price movement.
Bitcoin [BTC] It is Ethereum [ETH] The bulls struggled to change the market dynamics in their favor. The big losses of the last ten days meant that the price was back in a support zone where buyers should hold off sellers.
Ethereum MVRV and NVT ratios showed that the asset may be undervalued. The liquidity pocket at $3,500 could see a small squeeze, but the momentum would be bearish.
Meanwhile, another BTC investigation showed that mining activity had retreated and that miners were selling Bitcoin. However, the selling pressure has started to decrease in intensity over the past two days.
AMBCrypto decided to analyze the movement of both assets on the exchanges to assess market sentiment. This revealed that the bulls may not have much to celebrate just yet.
What does the net foreign exchange flow metric indicate?
The net foreign exchange flows metric provides valuable information about the market. When flows are positive, it shows that inflows are greater.
This, in turn, is a sign of potential selling pressure on the asset as it implies that participants are sending the crypto to exchanges to sell it.
Values below zero mean that outflows are higher, which is a good sign for buyers.
This indicates that market participants are withdrawing their assets from exchanges, likely to place them in safer storage, and indicates accumulation.
Source: CryptoQuant
30-day simple moving averages were used to better understand exchange flow trends. ETH inflows were considerable in mid-March and late May.
Both occurrences marked a local top for the price.
Over the past month, net flow has been strongly negative, showing accumulation. Over the past eight days, outflow has slowed, but the 30DMA net flow has remained in negative territory.
Source: CryptoQuant
Meanwhile, Bitcoin saw consistent accumulation in February and March. The 30DMA showed that BTC outflows from exchanges continued to dominate.
At the end of April and on May 21st, there were spikes in BTC inflows, but they were exceptions to the trend.
Are Bitcoin and Ethereum Heading for Consolidation?
Source: Inside the Block
AMBCrypto’s examination of IntoTheBlock’s monetary inflow/outflow data highlighted key support regions.
The inflow/outflow of money around the price showed that Ethereum has a strong support bastion at $3,080 to $3,180 and $3,280 to $3,381. Similarly, between $3,486 and $3,586 is also a strong resistance.
Source: Inside the block
To read Bitcoins [BTC] Price forecast 2024-25
For Bitcoin, $59,450 to $61,263 is support and $63,148 to $64,960 is resistance.
This meant that the current price consolidation of both crypto market leaders could be confined to these levels and lead to the formation of a range.