Investors sold Bitcoin in the past week, according to on-chain data. Meanwhile, Ether’s daily trading volumes have consistently exceeded that of BTC.
Bitcoin (BTC) was trading at around $ 35,987 at 9:00 PM UTC (4:00 PM ET). In the red area 2.5% in the last 24 hours.
Bitcoin 24-hour range: $ 35,754 $ 37,833 (CoinDesk 20)
ether (ETH) was trading at $ 2,549 at 9:00 p.m. UTC (4:00 p.m. ET). 3.2% lost in the last 24 hours.
Ether’s 24-hour range: $ 2,532 to $ 2,734 (CoinDesk 20)
Bitcoin bearish signal
Bitcoin, the world’s largest cryptocurrency by market capitalization, was below the 10-hour moving average and 50-hour moving average as the two indicators converge, a bearish signal for market technicians.
The price of BTC slipped from $ 37,833 at 01:00 UTC (Monday 9:00 p.m. ET) to $ 35,816 by Tuesday 17:15 UTC (1:15 p.m. ET), a 5.3% dip based on data from CoinDesk 20 before it rose to $ 35,987 in print time.
“Bitcoin is newly oversold from a medium-term perspective,” said technical analyst Katie Stockton in her weekly Fairlead Strategies Investor Note.
Oversold BTC terms
Last weekend saw the lowest number of Bitcoin transfers from exchanges in 2021. On Sunday, May 30, the river bottomed out at 33,393 daily transfers, according to data aggregator Glassnode. It is the first time this year that fewer than 35,000 transfers were made from exchanges in one day.
This contrasts with the high volume of transfers to the exchanges over the past month, especially on May 19, when every transaction on that day averaged 2 BTC. That is three times the previous daily average per transaction of 0.67 BTC in 2021.
This on-chain information from Glassnode supports Stockton’s oversold theory on the Bitcoin market as it appears that the owners moved BTC to the exchanges and sold it, resulting in a record low outflow on Sunday.
“Medium-term momentum is on the downside, giving way to another lower high within the correction phase,” added Stockton. “The support is initially at 34,000 US dollars.”
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Ether’s sharp correction
The second largest cryptocurrency by market cap, Ether, was trading at around $ 2,549 at 9:00 PM UTC (4:00 PM ET), down 3.2% in the past 24 hours. The asset is below the 10 hour moving average but above the 50 hour average, a flat or sideways signal for market technicians.
Ether fell from $ 2,734 at 10:00 PM UTC 01:00 UTC (Monday 9:00 PM ET) to $ 2,532 at 5:15 PM UTC (1:15 PM ET) Tuesday, a 7.3% decrease based on the Data from CoinDesk 20. ETH has risen slightly since then and is at $ 2,549 at press time.
“Ether has seen a sharp correction like Bitcoin,” said Fairlead’s Stockton. “The medium-term dynamic has deteriorated. Support is intact on a consecutive close near the $ 2,038 mark. “
While Bitcoin’s 90-day volatility has been, well, volatile over the past three months, Ether has been even more. According to data from CoinDesk Research, the volatility of both assets bottomed out in mid-April, but the ETH’s volatility is now above 170% while BTC is still below 100%.
“Yes, really troubled days,” said Chris Thomas, Head of Digital Assets at Swissquote Bank. “Ether is of course a more volatile asset than Bitcoin because it is less institutionalized and has a smaller market capitalization. It therefore behaves similarly to a stock with a higher beta than the market index. “
Ether’s resilience could be a function of liquidity
One of the reasons for ETH’s price stability could be that its trading volume becomes higher than that of BTC on most days, resulting in increased liquidity.
“In the past few days, ETH and BTC have both declined by similar percentages,” said John Willock, CEO of crypto-custody provider Tritum. “But after the last weekends of market volatility, ETH has done much better overall and has regained most of its depreciation.”
Based on the latest available data from CoinGecko, the ETH volume on Monday was $ 43 million, while $ 37 million BTC changed hands in major spot trading venues.
Last month, Ether trading volume was higher than Bitcoin’s for 12 days. Last week, ETH volumes were higher than BTC’s for four days. This is a trend that analysts will be watching closely, as higher volumes can affect prices if they tend to be either buying or selling.
“ETH is quickly recognized as an asset in its own right,” said Willock.
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Fairlead’s Stockton believes the coming weeks for crypto could be a time for traders to “risk on”. This is a term used for bullish market positioning that anticipates the next short-term upward cycle.
“The insight is a shift towards risk positioning for the next week or two,” Stockton said.
Digital assets on the CoinDesk 20 are mixed on Tuesday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
The S&P 500 in the United States closed 0.10% like Profits in the financial and energy sectors outweighed weakness in the tech sector on Tuesday.
Gold was down 0.40% to trade at $ 1,899 at press time.
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The US 10-year Treasury yield rose to 1.611 on Tuesday, up 2%.