Bitcoin and Ethereum: On-Chain Data Suggests Anticipated Breakout
Bitcoin and Ethereum, the two largest cryptocurrencies, are currently in a consolidation phase above $30,000. On-chain data indicates an imminent breakout, either upwards or downwards, with the potential for a significant price movement. Let's delve into the direction of this breakout and what the on-chain data reveals.
For Bitcoin, on-chain data supports the likelihood of an upward breakout. Santiment, a crypto analysis firm, highlights the net realized loss against the price of BTC, suggesting an approaching upward breakout. After a period of relatively low volatility, both Bitcoin and Ethereum are experiencing minor losses, while the Net Realized Profit/Loss (NRPL) indicator shows a negative correlation with the price, indicating a higher chance of a positive price movement in the short term. Additionally, as Bitcoin enters the consolidation phase, whales are increasing their accumulation, and the amount of BTC on crypto exchanges is declining.
Regarding Ethereum, the price briefly dipped below $1,850 but has since recovered and is approaching the $1,900 level. Notably, Ethereum has a robust support zone between $1,800 and $1,870, with 3.4 million wallet addresses purchasing 11.2 million ETH in this range. On the other hand, there is a significant resistance area between $2,040 and $2,100, where 1 million wallet addresses have bought 27 million ETH, highlighting the strength of this range.
Currently, there is a battle between bullish and bearish forces for ETH, but technical indicators lean towards the possibility of a breakout towards $2,050. Any upward movement in Bitcoin and Ethereum can have a significant impact on the wider crypto market, acting as a catalyst for other cryptocurrencies.
In conclusion, on-chain data suggests an anticipated breakout for Bitcoin and Ethereum. While Bitcoin shows signs of an upward breakout, Ethereum faces key support and resistance levels that will determine its direction. Traders and investors will closely monitor these developments as they have the potential to shape the near-term trajectory of the crypto market.