The cryptocurrency market recently experienced a slight setback as both Bitcoin (BTC) and Ethereum (ETH) witnessed a dip of nearly 3% in their prices. As the week unfolds, investors and traders look to the market trends, seeking insights on the possible future movements of these leading digital assets.
A noteworthy change in one of Bitcoin’s crucial indicators, which could substantially influence its price movement, has been detected according to fresh data. This surprising development has piqued the interest of investors and analysts as they attempt to unravel its consequences for the cryptocurrency’s path. Moreover, certain reports indicate that the FTX collapse has contributed to a gradual transformation in the behavior of BTC holders. Coins that have remained unspent since the incident are progressively becoming part of long-term holdings.
Fresh data from Cryptoquant has unveiled an intriguing change in the pattern of Bitcoin’s active addresses. The chart shows that Bitcoin’s price usually climbs following a hash rate drop when the number of active addresses exceeds a specific threshold. However, this pattern shifted when the active addresses metric soared to a new record of nearly 1.3 million – the highest figure in over a year. This increase in active addresses implies a potential alteration in market dynamics, igniting curiosity and conjecture among traders and analysts.
Ethereum recently experienced a substantial burn of 10,000 ETH within 24 hours, as reported by Delphi Digital. Token burning is a process where ETH is sent to an inaccessible “burn address,” reducing the total supply and potentially lowering inflation, which benefits long-term investors. Glassnode’s data indicates a surge in retail interest in Ethereum, with an increasing number of addresses holding over 0.1 ETH. Additionally, the Ethereum network saw a rise in transfers, resulting in an 11-month high in average gas fees paid to validators. This development led to an increase in the total number of validators from 572,635 to 645,192. Developers are now discussing potential enhancements for the upcoming Deneb upgrade.
Currently, Bitcoin is trading at $28,900, down nearly 3%. The BTC/USD pair is building on its previous daily gains, inching closer to the $30K milestone. On the four-hour chart, Bitcoin remains above the 50-day exponential moving average, which serves as a vital support level around $28,700. Closing candles above $28,700 heightens the likelihood of a bullish reversal for BTC. Bitcoin may encounter immediate support near the 27,600 level, as indicated by a trendline on the 4-hour chart. Should the price break through this pivotal 27,600 level, BTC could be en route to the next support level at 27,200. On the other hand, if BTC successfully surpasses the $29,600 threshold, its price could potentially climb to $30,400.
The current Ethereum price is $1,911, and ETH experienced a slight dip of around nearly 2.5% in the past 24 hours. It currently ranks #2 on CoinMarketCap, with a live market capitalization of $229 billion. On Sunday, Ethereum is trading with a sideways bias, maintaining a narrow range between $1,875 and $1,965. The upward trendline is supporting ETH/USD pair near $1,870, and closing candles above this level has the potential to trigger a bullish bounce-off. On the upside, the ETH/USD pair has the potential to go after $1,960 or even higher towards $2,020. On the other hand, support continues to hold around $1,875.7, and a break below this level opens up further room for selling down to the $1,800 mark.
In conclusion, the future of Bitcoin and Ethereum remains uncertain, with trends and patterns fluctuating and influencing the market’s direction. As the upcoming Deneb upgrade for Ethereum draws nearer, and the change in the behavior of Bitcoin’s active addresses raises questions, it’s crucial for investors and traders to stay informed and cautiously watch the developments in the crypto market.
Source: Cryptonews
