Bitcoin Price Support Signals Buyer Interest Despite Recent Bearish Momentum

  • The recent analysis indicates a potential local bottom for Bitcoin (BTC) and Ethereum (ETH).
  • Current market sentiment remains subdued, and holders’ behavior at key support levels will be pivotal for future price movements.
  • An uptick in Ethereum’s MVRV and NVT ratios suggests the asset might be undervalued, raising the prospect of a short squeeze at a significant liquidity pocket.

Discover the latest developments in the crypto market as Bitcoin and Ethereum maneuver through critical support levels, hinting at potential market shifts.

Exchange Net Flow Metrics and Market Sentiment

The exchange net flow metric is a critical tool for assessing market trends. Positive net flows indicate higher inflows, suggesting potential selling pressure as participants move assets to exchanges.

Conversely, negative net flows imply higher outflows, a bullish sign as participants withdraw assets for safer storage, indicating accumulation.

Recent trends indicate substantial Ethereum inflows between mid-March and late May, marking local price tops, while net flows turned significantly negative over the past month, reflecting accumulation. This trend has decelerated in the last eight days, yet 30-day moving averages remain negative.

Similarly, Bitcoin witnessed consistent accumulation throughout February and March. Though occasional spikes in inflows occurred in April and May, the predominant trend remains one of outflows.

Ethereum and Bitcoin: Signaling Potential Consolidation

In-depth analysis of Ethereum’s support and resistance levels shows robust support between $3080-$3180 and $3280-$3381, with resistance at $3486-$3586.

For Bitcoin, strong support is observed at $59,450-$61,263, with resistance at $63,148-$64,960. These levels suggest the possibility of a consolidation phase, leading to a range-bound trading scenario for both assets.

Conclusion

Overall, the market indicators for Bitcoin and Ethereum suggest that while there is potential for accumulation, the market sentiment remains cautious. Key support and resistance levels will play a crucial role in determining the next price movements. Investors should monitor these metrics closely to gauge future trends.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

SEC Chair Paul Atkins to Discuss Cryptocurrency Insights at Upcoming Roundtable – What It Means for Bitcoin

In a pivotal development for the **cryptocurrency** sector, COINOTAG...

BNB Chain Unveils Major Upgrade to MVB Program, Empowering Developers for Web3 Innovation

COINOTAG News reported on April 23 that the MVB...

Trump’s Fed Chairman Controversy: No Plans to Fire Powell Amidst White House Legal Review

COINOTAG News reports, on April 23rd, that recent remarks...

Trump Decides Against Firing Powell Amid Warnings from Treasury and Commerce Secretaries

On April 23rd, COINOTAG reported significant developments regarding Federal...

SEC Acknowledges Vaneck’s Filing for Spot Avalanche ETF 💰Coin: Avalanche ( $AVAX ) $22.62

SEC Acknowledges Vaneck's Filing for Spot Avalanche ETF 💰Coin: Avalanche (...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img