On-chain indicators are becoming bullish for Bitcoin and ETH

Bitcoin and ETH appear to be on the verge of extreme volatility as multiple on-chain indicators reflect rapidly increasing buying pressure. However, these cryptocurrencies have to overcome an obstacle to go further north.

Bitcoin whale returns

Bitcoin and ETH may be ready for an uptrend.

Bitcoin rebounded strongly after falling below $ 41,000 today. The leading cryptocurrency rallied above USD 3,500 after a steep correction to hit an intraday high of USD 44,229.

BTC price 4-hour chart | Source: Tradingview

At the same time, Santiment’s token consumption age index saw a significant increase in idle BTC over several hours as the price fell.

This on-chain metric measures the number of coins that have moved through the most recent addresses multiplied by the number of days since they were last moved. While the old token movement isn’t exactly a leading price indicator, it has signaled a spike in volatility over the past few months.

If history repeats itself, Bitcoin is likely to fluctuate even more based on the number of tokens that have moved recently.

Age of token consumption (pink) and BTC price (green) | The source: Mood

The whales’ behavior suggests an impending spike in volatility that could drive the price higher. In the past 24 hours, wallets on the network at 100-10,000 BTC have added more than 80,000 BTC to their holdings worth $ 3.32 billion.

The sudden escalation of bullish pressure shows that large investors are trying to buy dips in preparation for a bull run.

BTC price (green) and wallet with 100-10,000 coins (pink) | The source: Mood

Although the upside seems to be in favor of the bulls, Bitcoin faces strong resistance. IntoTheBlock’s In / Out of the Money Around Price (IOMAP) model shows that 1.2 million addresses previously purchased 1.05 million BTC for between $ 43,150 and $ 45,670.

These holders may seek to offset their losing positions if the price continues to rise, with upward pressure as mentioned earlier. Therefore, a decisive daily close above this supply level is required to signal the start of a new upward trend.

The source: IntoTheBlock

IOMAP clusters, on the other hand, show the main retaining wall between $ 41,830 and $ 43,000. Around 760,000 addresses hold almost 430,000 BTC at this price. A slide below the upper demand zone can result in a drop to $ 39,000 as there is no other area of ​​interest.

ETH seems to be undervalued

The amount of ETH held on exchanges continues to decline exponentially. In the last month alone, over 1.35 million ETH were withdrawn from trading platforms, a decrease of 6.63%.

The reduced offer at ETH on well-known exchange wallets paints a positive picture for the future upward trend. Technically, it reduces the amount of ETH available for sale, thereby limiting downside risk.

Stock exchange offer (pink) and ETH price (green) | The source: Mood

In addition, the Market-to-Real-Value (MVRV) index shows that ETH is undervalued at the current level. This fundamental metric measures the average profit or loss of addresses that have bought ETH in the last month. Any time the 30-day MVRV drops below 0%, it is usually followed by a bullish impulse.

The 30-day MVRV rate is currently -8.6%, which indicates that ETH is in the “opportunity zone”. The lower the MVRV ratio, the more likely the price will go up.

ETH price (green), 30-day MVRV rate (pink), 30-day MVRV rate (MA 7 – red) | The source: Mood

Although ETH is sitting above the weak support, trading history shows that it only has one hurdle to overcome to continue the uptrend.

Over 1.2 million addresses bought about 8.6 million ETH between $ 3,185 and $ 3,275. A crucial candle closing above this resistance could push ETH to $ 4,000 or a new all-time high.

The source: IntoTheBlock

However, investors need to watch the $ 2,900 support as any signs of weakness could lead market participants to sell. In such exceptional circumstances, ETH can drop to $ 2,500.

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Minh Anh

According to crypto briefing

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