Crypto market sentiment has shifted back into “extreme fear” after Bitcoin and Ethereum lost price support in the past 24 hours. On-chain data shows increasing selling pressure, which could lead to bigger losses.
Bitcoin and Ethereum look set for major losses after losing vital support areas.
Long and short positions worth nearly $300 million have been liquidated in the cryptocurrency market in the past 24 hours. Data from analytics platform Coinglass showed losses accelerated soon after Bitcoin dipped below $28,000 and Ethereum lost $1,800 as support.
Now, it looks like market participants are rushing to exchanges to sell some of their tokens.
The on-chain data provided that the whales hold 1,000 to 10,000 BTC have offloaded or redistributed over 30,000 BTC, worth approximately $870 million, in the past 24 hours. The spike in network activity coincides with a significant increase in the number of affluent tokens in known cryptocurrency exchange wallets. Over 10,000 BTC have been sent to exchanges over the same period, adding selling pressure on the flagship cryptocurrency.
As sell orders pile up on cryptocurrency exchanges, support for bitcoin looks increasingly weak.
The model IntoTheBlock’s In/Out of the Money Around Award shows no significant demand resistance under Bitcoin that could prevent it from incurring further losses. What can be seen is a massive supply barrier between $29,190 and $30,070, where 1.46 million addresses were bought over 900,000 BTC.
Bitcoin should very quickly recover this critical zone as support in order to have a good chance of rebounding. If it fails to do so, it could cause a panic among the addresses that are underwater, which could allow a sell-off that would send BTC down to the May 12 low of $25,370 or even 21,000. $.
Although on-chain metrics do not demonstrate a similar increase in the number of ETH entering known cryptocurrency exchange wallets, the model Global money in/out reveals a lack of walls of demand. The most important support level for Ethereum is around $730, where over 13.31 million addresses have been bought over 13.25 million ETH.
Based on trading history, Ethereum is unlikely to rally and enter a new uptrend until it either forms a bottom around $730 or breaks. will not have exceeded $2,550.
Current conditions predict that there is still room to descend before the end of the crypto winter. Fortunately, there are a few on-chain metrics that have accurately anticipated previous market lows and can provide indications of a potential trend reversal in the future.