key takeaways
- Bitcoin fell below $28,000 in the last 12 hours.
- Meanwhile, Ethereum lost the $1,800 level as support.
- Further losses can be expected as selling pressure increases.
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Crypto market sentiment again turned into “extreme fear” after Bitcoin and Ethereum lost price support over the past 24 hours. On-chain data shows increasing selling pressure, which could lead to more significant losses.
Bitcoin and Ethereum Spell Trouble
Bitcoin and Ethereum are bound to make significant losses after losing key support areas.
Nearly $300 million worth of long and short positions have been liquidated in the cryptocurrency market over the past 24 hours. Data from analytics platform Coinglass showed losses accelerated shortly after Bitcoin fell below $28,000 and Ethereum lost $1,800 as support.
Now, it appears that market participants are rushing to exchanges to sell some of their tokens.
On-chain data shows that whales holding between 1,000 and 10,000 BTC have offloaded or redistributed over 30,000 BTC, valued at approximately $870 million, in the past 24 hours. The spike in network activity coincides with a significant increase in the number of tokens flowing into known cryptocurrency exchange wallets. Over 10,000 BTC have been sent to the trading platform in the same period, adding to the pressure on the flagship cryptocurrency.
While sell orders pile up on cryptocurrency exchanges, bitcoin’s support appears weak.
IntoTheBlock’s in/out of money around price model shows no significant demand wall below bitcoin that could prevent it from taking further losses. What can be seen is a massive supply barrier between $29,190 and $30,070, where 1.46 million addresses have been bought for over 900,000 BTC.
Bitcoin will have to reclaim this critical area as support very quickly to have a good chance of rebounding. Failing to do so could create panic at these addresses that are underwater, which could trigger a selloff that could propel BTC toward May 12 lows of $25,370 or even $21,000. Sends.
While on-chain metrics do not show a similar increase in the number of ETH flowing into known cryptocurrency exchange wallets, the global in/out of the money model reveals a lack of demand walls. The most important support level for Ethereum is near $730, where over 13.31 million addresses have been bought with over 13.25 million ETH.
Based on trading history, Ethereum is unlikely to recover and enter a fresh uptrend unless it makes market lows near $730 or climbs above $2,550.
Current conditions suggest that there is more room for further downside before the end of the crypto winter. Fortunately, there are some on-chain metrics that accurately predict past market bottoms and can provide guidance regarding potential trend reversals in the future.
Disclosure: At the time of writing, the author of this article holds BTC and ETH.
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