- BTC’s supply on exchanges dropped as its price went above $28,000.
- ETH’s price also surged by more than 9% last week, but a few indicators were bearish.
KuCoin, a popular crypto exchange, recently published its asset reserve certificate, revealing users’ Bitcoin [BTC] and Ethereum [ETH] holdings. The latest report pointed out a drop in the numbers, which meant that investors were selling their assets.
Read Bitcoin’s [BTC] Price Prediction 2023-24
However, the possibility of investors selling BTC and ETH seemed unlikely to happen, especially at a time when the market gained bullish momentum. Therefore, taking a closer look at both the cryptos provided a better understanding of what was actually going on in the crypto market.
Decoding KuCoin’s charts
As per the latest data from KuCoin, BTC’s assets were 17,617.5 at press time, a decrease of 4%. ETH also dropped by more than 3%. Additionally, users’ Tether [USDT] assets on KuCoin plummeted by 4% compared to the last report.
This suggested that investors were actually selling their holdings. However, upon closer inspection, it was clear that this was the case limited to KuCoin.
Notably, BTC’s Supply on Exchanges has dropped over the last month. Its supply outside of exchanges increased at the same time, proving the fact that investors were buying the coins.
While this suggested that buying sentiment was dominant, it was surprising to see that the total number of holders actually dropped in the recent past.
Source: Santiment
Ethereum’s metrics were also interesting to look at, as they revealed new details about investor sentiment. Unlike BTC, ETH’s Supply on Exchanges did register an increase last month.
However, its Supply outside of Exchanges also rose, which was intriguing to watch. Also, unlike BTC, ETH’s Total Amount of Holders rose last month. In fact, whale confidence in ETH was also high, which was evident from the rise in ETH’s supply held by top addresses.
Source: Santiment
Bitcoin and Ethereum initiated a bull rally
After much delay, the crypto market finally showed high volatility, as most cryptos’ price charts turned green. Bitcoin and Ethereum were no exception. On one hand, BTC’s price breached the $28,000 mark as its price surged by more than 7% last week. On the other hand, ETH’s price rose by more than 9% last week.
At the time of writing, BTC was trading at $28,074.86 with a market capitalization of over $547 billion, while ETH was valued at $1,723.39 with a market cap of $207 billion. A look at BTC’s metrics sheds light on whether the crypto can maintain its surge in the days to follow.
As per CryptoQuant, BTC’s exchange reserve was declining, meaning that the coin was not under selling pressure. The total number of coins transferred has increased by 46.32% in 24 hours, which was a positive signal for BTC.
Additionally, BTC’s funding rate was green, meaning that investors in the derivatives market were buying at this higher price.
Source: CryptoQuant
Ethereum’s state looks dicey
While most metrics were bullish on BTC, the same was not true for Ethereum, as a few market indicators suggested that the bears might have buckled up. For example, ETH’s Chaikin Money Flow (CMF) registered a downtick after a steep hike.
Its Relative Strength Index (RSI) also went down slightly, which increased the chances of a southward price movement in the days to follow. Nonetheless, ETH’s MACD remained on the buyers’ side as it displayed a bullish crossover.
Source: TradingView
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The overall market sentiment also remained bullish, which was evident from LunarCrush’s data. Bullish sentiment around ETH grew by 13% last week, while bearish sentiment around the token dropped by more than 50%.
Additionally, its Altrank also improved over the past few days, which suggested a continued northward price movement.
Source: LunarCrush
