What Bitcoin, Ethereum exchange flows say about the future of the crypto market

  • Exchange flow metrics showed that local lows could be in sight for BTC, ETH.
  • The market trend was not bullish and holder behavior at important support levels would be crucial for the next price movement.

Bitcoin [BTC] and Ethereum [ETH] Bulls struggled to change the market dynamics in their favor. The big losses of the last ten days meant that the price had returned to a support area where buyers are expected to fend off sellers.

Ethereum’s MVRV and NVT ratios showed that the asset might be undervalued. Liquidity pockets at $3500 might see a short squeeze, but otherwise the momentum was bearish.

Meanwhile, another BTC check showed that mining activity had decreased and miners were selling Bitcoin. However, the intensity of the selling pressure had started to decrease in the last two days.

AMBCrypto decided to look at the movements of both assets from the exchanges to understand the market sentiment. It showed that the bulls still don’t have much to cheer about.

What does the Exchange NetFlow metric show?

The exchange net flow metric provides valuable insight into the market. When the flow is positive, it indicates that inflows are high.

This in turn is a sign of potential selling pressure on the asset, as it means participants are sending crypto to exchanges to sell it.

A value below zero means that clearance is high, which is a good sign for buyers.

This indicates that market participants are withdrawing their assets from exchanges, and possibly placing them in safe storage, and this indicates accumulation.

Ethereum Net Flow

Source: CryptoQuant

A 30-day simple moving average was used to better understand the exchange flow trend. ETH flow was significant between mid-March and late May.

Both events marked local peaks for the price.

Net flows were significantly negative over the past month, indicating accumulation. Over the past eight days, outflows have slowed, but the 30DMA net flows remained in negative territory.

bitcoin net flow

Source: CryptoQuant

Meanwhile, Bitcoin saw a steady increase in February and March. The 30DMA showed that BTC inflows from exchanges continued to dominate.

There were surges in BTC inflows in late April and on May 21, but they were exceptions to the trend.

Are Bitcoin and Ethereum headed for integration?

Ethereum in/out of the money

Source: IntoTheBlock

An examination of in/out of the money data obtained from IntoTheBlock by AMBCrypto highlighted key support areas.

The in/out of money price movement showed that Ethereum has a strong bastion of support from $3080-$3180 and $3280-$3381. Similarly, $3486-$3586 is also a firm resistance.

Bitcoin in/out of the money

Source: IntoTheBlock

Read about bitcoin [BTC] Price Forecast 2024-25

The support level for Bitcoin is $59,450-$61,263 and the resistance level is $63,148-$64,960.

This means that the current price consolidation of both these crypto market leaders could be confined within these levels and lead to a range formation.

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