The UST crash triggered a sell-off in both Bitcoin and Ethereum. Since then, sellers have dominated the market. Despite the significant moves made by buyers, it is still a sellers market. Folks initially hoped that the sell-off would stop once the new week started. However, the outflow and inflow trends have indicated that the sell-off may continue long.
BTC and ETH Inflows Still High
Major digital assets such as Bitcoin and Ethereum had some encouraging reversals on Monday. For instance, Bitcoin was able to reclaim $30,000, while Ethereum could recover to around $2,000. However, sellers had already rushed into exchanges to realize their gains, worsening the situation.
Investors deposited over $1 billion worth of Bitcoin into various exchanges in a day. It was a reversal from the previous day when outflows had exceeded inflows. Yesterday, the net inflow was worse as central exchanges reported around $67 million in 24 hours.
Ethereum, the second-largest cryptocurrency, saw its net flows surpass those of Bitcoin and maintained a positive angle. During the 24 hours, it saw exchange inflows of around $590 million, while outflows came in at almost $500 million.
It shows that there are more sellers in Ethereum than in Bitcoin. The decline in the digital asset was expected, as it had already been selling below $2,000.
BTC Floor Target?
In a recent Twitter discussion, Rekt Capital analyst and trader explained how the price of Bitcoin could react if it falls to the 200WMA. Notably, the 200WMA is a crucial support level that Bitcoin has relied on ever since and has never been broken.
According to data from TradingView, the 200WMA is still acting as a support level in bear markets. Based on Rekt Capital, Bitcoin would likely continue to trade below the 200WMA as it did in the past. However, it would then bounce back up and remain as support. Since the previous wicks had involved around 28% of the price, a similar wick could be expected to occur soon, which would cause Bitcoin to reach $15,500.
BTC Recovery Might be in Sight
The inflow and outflow trends have been continuously alternating for a couple of days now. It is an indication that the market is reacting to the changes in the environment. Notably, the market could be in for a reversal following Tuesday’s trading session.
On the other hand, one of the factors that can trigger an increase in outflows is the decline in the prices. It usually leads to investors taking advantage of the lower prices by accumulating more tokens.
Notably, the inflow and outflow trends of USDT are also indicators that suggest a potential reversal. They show that investors are still coming into the market to purchase and manage assets. It is good for the market as it allows them to accumulate more tokens.
Ethereum Bulls Anxious About a Reversal
The price of Ethereum is currently in a bear market, and it’s getting fed up with the current decline. The Relative Strength Index is slowly moving away from its oversold territory, which suggests that the time is right for investors to get back into cryptocurrencies.
The ETH price is expected to continue to move higher and eventually reach $3,000. However, in the short term, the focus is on a potential pennant break and a potential resistance at $2,148.67. It is the first resistance that’s been taken into account.
The current low relative strength index (RSI) suggests that more upside can be expected to be opened towards the next resistance level of $2,300. This level is above an interesting intermediary level that ETH established last June, above $2.278.42.
Source: https://crypto.news/bitcoin-ethereum-inflows-still-high-bears/