- Bitcoin price shows a significant increase in volume while trading below the 200-week moving average.
- Ethereum price remains above 200-week moving average but shows bearish on-chain metrics.
- Fluctuating price on-chain metrics can constitute the sell signal that large-cap investors are looking for.
A general rule among fishermen is that Guppies and goldfish can never mix.
This article uses on-chain metrics to gain perspective on the current cryptocurrency market. While market sentiment and technicals hint at bullish potential, on-chain metrics are starting to paint an entirely different narrative.
Bitcoin has a decision to make
Bitcoin price is currently trading at $19,743, as the Volume Profile indicator shows a significant increase in transactions while BTC price remains stagnant. The secular market movement comes after Bitcoin lost 20% of its market value last month.
Bears successfully breached the 200-week moving average (WMA) and bulls jumped ship to the psychological $20,000 level. The breach has prompted retailers to join bears calling for liquidation of the summer low bitcoin price hit at $17,622.
BTC.USDT 2-Day Chart
Under the hood, Bitcoin price shows disturbing evidence for day trading bears. CryptoQuant’s Bitcoin Miners Position Index shows a significant increase in miners’ deposit exchanges. On September 1, the indicator was around 10x its average volatility range.
CryptoQuants Bitcoin Miners Ranking Index
According to CryptoQuant
“A high value shows that miners are sending more coins than usual, which indicates a possible sell-off. If miners send some amount of their reserves at the same time, it can trigger a price drop.”
Combining these factors, Bitcoin price could set up a bloody September. An invalidation of the bear thesis can occur if the bulls are able to retrace the 200-WMA on a higher time frame chart such as weekly/monthly. The 200 WMA is 17% higher than the current Bitcoin price.
In the video below, our analysts dive deep into Bitcoin’s price action, analyzing key levels of interest in the market. -FXStreet Team
Ethereum price paints a different picture
Ethereum price trades at $1,566 as decentralized smart contract token rises above 200-WMA. As market sentiment blooms positively amid the impending merger, Ethereum price shows a relevant signal under the hood that opposes the bullish long-term outlook.
ETH USDT 2-Day Chart
In chain metrics
According to CryptoQuant’s deposit transactions of all exchange indicators, Ethereum has seen huge deposits since its inception. On July 25, exchanges saw 640,000 trades, nearly seven times the average daily range. In theory, higher deposits on an exchange indicate a higher probability of a sale. On September 3, the Ethereum price saw an additional 200,000 transactions.
Crypto Quants Exchange Deposit Transactions Indicator
Combined, high-cap Ethereum traders are clearly participating in the market and could significantly influence the Ethereum price in the coming weeks. A cautious trading mindset should be applied based on confounding variables.
In the video below, our analysts dive deep into Ethereum’s price action, analyzing key levels of interest in the market. -FXStreet Team
Fluctuating price is moving
A fluctuating XRP price could hint at a major liquidation. Last week, 1 billion tokens re-entered the circulating supply. Inflation of tokens is a result of Ripple’s escrow program. According to the fluctuation,
“XRP is designed to maintain the escrow system of the ledger Two use cases. What gives it its name is the ability to lock money in a ledger and release it into one of two accounts depending on what it is A A specific condition occurs at a specific time.”
Fluctuation Escrow Program
Although the use of the term is subject to interpretation, there are many on-chain metrics that indicate a sell-off is imminent. Sentiment’s 365-day circulating supply indicator showed a rise in active wallet transactions.
Sentiment’s price, volume, OTC supply and 365 circulation indicators
The momentum of the indicator is increasing by 200 million coins every few days. If market conditions continue, the circulation will collide with the total supply outside of the exchanges cap, which currently stands at 99 billion tokens. This could be an on-chain signal whales are looking for to start offloading their tokens.
In the video below, our analysts dive deep into Ripple’s price action, analyzing key levels of interest in the market. -FXStreet Team