- An exchange flow metric showed that the local bottom might be in place for BTC and ETH.
- Market sentiment was not bullish and holders’ behavior at crucial support levels would be critical to the next price move.
Bitcoin [BTC] and ether [ETH] Bulls struggled to change market dynamics in their favor. The big losses over the past ten days put the price back into a support zone, where buyers are expected to hold off sellers.
Ethereum’s MVRV and NVT ratios showed that the asset may be undervalued. The $3500 liquidity pocket could see a short squeeze, but otherwise the momentum was bearish.
Meanwhile, another BTC survey found that mining activity had declined and miners were selling Bitcoin. However, the selling pressure has started to decrease in intensity over the past two days.
AMBCrypto decided to look at the movement of both exchange assets to gauge market sentiment. This showed that the bulls may not have much to cheer about yet.
What does the exchange grid flow statistic indicate?
The net exchange flows metric provides valuable insights into the market. If the flows are positive, it means that the inflows are larger.
This in turn is a sign of potential selling pressure on the asset, as it implies participants are sending the crypto to exchanges to sell it.
Values below zero mean outflows are greater, which is a good sign for buyers.
It indicates that market participants are withdrawing their assets from exchanges, likely putting them in safer storage, and signals accumulation.
The 30-day simple moving averages were used to better understand exchange rate trends. ETH inflows were significant in mid-March and late May.
Both events marked a local top for the award.
Over the past month, net flows have been heavily negative, indicating accumulation. Over the past eight days, outflows have declined, but net 30DMA flows remained negative.
Meanwhile, Bitcoin saw consistent accumulation in February and March. The 30DMA showed that the flow of BTC out of the exchanges continued to dominate.
There were spikes in BTC inflows in late April and May 21, but these were exceptions to the trend.
Are Bitcoin and Ethereum Heading for Consolidation?
AMBCrypto’s investigation into IntoTheBlock’s in/out funds data revealed key support regions.
The inflows and outflows around the price showed that Ethereum has a strong bastion of support at $3080-$3180 and $3280-$3381. Likewise, the $3486-$3586 is also a firm resistance.
Read Bitcoin’s [BTC] Price forecast 2024-25
For Bitcoin, the $59,450-$61,263 is support and $63,148-$64,960 is resistance.
This meant that the current price consolidation of both crypto market leaders could be contained within these levels and lead to a bandwidth formation.