The central theses
- Both Bitcoin and Ethereum have fallen more than 6% in the past 24 hours.
- As foreign exchange inflows increase, on-chain analysts believe a spike in profit taking is underway.
- With further selling pressure, BTC could drop to $ 40,000 and ETH to $ 2,400.
Share this article
A significant number of Bitcoin and Ethereum tokens have flooded the exchanges in the past 24 hours. Such market behavior suggests that investors are willing to take profits, leading to a sharp correction.
Bitcoin whale book profits
Bitcoin and Ethereum holders are selling their assets.
Bitcoin has suffered significant rejection from the $ 50,000 psychological resistance level. The flagship cryptocurrency has lost over 3,000 points in market value, which is a decrease of 6.7%. The sudden downward pressure correlates with an increase in profit-taking among large investors.
The on-chain data and intelligence platform Santiment shows that wallet owners holding millions of dollars in BTC, known colloquially as “whales”, have reduced their holdings. In the past 24 hours, addresses with 1,000 to 100,000 BTC have sold over 10,000 tokens valued at around $ 500 million.
Source: Santiment
In addition, a significant number of coins have flooded well-known cryptocurrency exchanges. On-chain analyst Will Clemente entertains that since August 20, more than 27,000 BTC have moved to trading platforms. Many of the tributaries flowed into Binance.
The increasing supply of BTC on well-known cryptocurrency exchanges along with the surge in profit-taking by whales paints a negative picture for Bitcoin’s price action. It technically suggests that the number of tokens available for sale has increased, consequently increasing the downside potential.
Source: Glassnode
IntoTheBlock’s In / Out of the Money Around Price (IOMAP) model shows that Bitcoin could find support at $ 45,735 if sales orders continue to pile up. Around this price level, almost 856,000 addresses hold over 440,000 BTC.
Such a significant demand area could be able to absorb some of the recent selling pressure. But if Bitcoin can break that hurdle, it could drop to $ 40,000.
Source: IntoTheBlock
On the other hand, the IOMAP cohorts show a stiff supply barrier in front of the pioneer cryptocurrency. Approximately 915,000 addresses previously purchased 312,000 BTC between $ 47,880 and $ 49,270.
Holders who have been underwater near this price level can attempt to balance their positions in order to avoid significant losses and thus slow any possible rebound.
Ethereum is losing crucial support
The behavior analysis platform Santiment has also seen a significant increase in the number of ETH moves to trading platforms. In the past 24 hours alone, around $ 2 billion worth of Ethereum has been transferred to Binance.
In an August 25 video, on-chain analyst Dino Ibisbegovic argued that such a large increase in the number of ETH tokens held on exchanges is a red flag for future Ethereum price growth. He said:
“You cannot be 100% sure that all of these tokens will immediately be converted into selling pressure for Ethereum. But it is certainly a sign that some big names could try to liquidate their positions and reduce their exposure for the time being. “
Source: Santiment
The significant increase in the inflow of foreign currency has led to an increase in selling pressure and pushed the Ethereum price down by 7.4%. The second largest cryptocurrency by market cap fell to $ 3,080, breaking a significant level of support.
The IOMAP cohorts show that Ethereum needs to reclaim $ 3,200 in support as soon as possible to prevent 890,000 addresses from selling the 9.68 million ETH they bought at that price level. Otherwise, a sell-off could occur, pushing prices towards the next critical demand limit at $ 2,400.
Source: IntoTheBlock
It’s worth noting that Ethereum would likely continue its uptrend after a crucial close above the $ 3,200 supply wall. The rally could spur market participants to buy and fuel a further move to $ 3,700.
This message was brought to you by Phemex, our preferred derivatives partner.
Share this article
The information on or accessed through this website is obtained from independent sources that we believe to be accurate and reliable, but Decentral Media, Inc. makes no representations or warranties as to the timeliness, completeness, or accuracy of any information on this website or their access via this website. Decentral Media, Inc. is not an investment advisor. We do not give personal investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be or become out of date, incomplete, or inaccurate. We may update outdated, incomplete, or inaccurate information, but we are under no obligation to do so.
You should never make an investment decision on an ICO, IEO or any other investment based on the information on this website and you should never interpret the information on this website as investment advice or rely on it in any other way. We strongly encourage you to consult a licensed investment advisor or other qualified financial professional when seeking investment advice on an ICO, IEO or any other investment. We do not accept compensation in any form for any analysis or reporting on ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
MicroStrategy is spending an additional $ 177 million on Bitcoin
Virginia-based software and data analytics firm MicroStrategy added an additional 3,907 Bitcoin to its balance sheet. MicroStrategy Keeps Stacking Bitcoin While most retail investors can only afford “stacking sats” …
Argentina could introduce bitcoin to curb inflation
Argentine President Alberto Fernández has made several positive comments on cryptocurrencies, suggesting the country could adopt Bitcoin to curb its rampant inflation. Argentina Eyes Bitcoin Adoption Argentina Joins The …
Kraken and DeFi Staples are donating $ 1.5 million to fund Ethereum 2.0
Five of the biggest names in DeFi and the Kraken cryptocurrency exchange donated a total of $ 1.5 million to support Ethereum developers. DeFi returns Ethereum Ethereum Execution Layer …
Efficient Market Hypothesis: Will Crypto Follow?
The Efficient Market Hypothesis (EMH) is a concept of finance that states that security prices reflect all available information about a financial instrument. EMH is one of the …
Comments are closed.