In the last few days, crypto markets have done quite well in the last month. Bitcoin rose from $24,700 to $31,400 while Ethereum rose from $1624 to $1923. However, there has been some profit booking recently.
In this article, we analyze the current situation with technical analysis and see if there are any trading or investing opportunities available.
Hourly charts show stiff resistance near $31,000 which is the same level around which Bitcoin has started showing weakness. However, RSI and MACD on hourly charts appear to be giving mixed signals.
Let us take a look at the daily charts to check the broader trend. On daily charts, we can see that Bitcoin prices have returned from their highs and are now near $30,300. Also, technical indicators show that there might be a little profit booking before further upward journey.
- RSI on daily charts is on a downward trend which could pressurize the price to sink.
- However, MACD is still in positive territory.
- Trading volumes are also on the decline which suggests lower market participation.
Therefore, we can conclude that the markets are sideways now with no clear indication of an upwards or downward journey in the future.
On-chain data suggests that around 1 Million users bought Bitcoin for nearly $31,000. These users are at a slight loss now. If they sell, the Bitcoin price would further fall. However, above $31,200 there appears to be little to no resistance.
#Bitcoin confidently sustains its position above $30K. On-chain data indicates nearly 1M holders purchased Bitcoin at a slightly higher rate than current levels, potentially forming resistance. Silver lining? Data suggests potential resistance significantly drops post $31.2K pic.twitter.com/Ga6fpNoPQe
— IntoTheBlock (@intotheblock) June 26, 2023
Data on long-term holders show that they are just 20k users shy of the all-time high number of 14.49 Million HODlers. This shows that despite the incentive to sell at a high price of $30,000, long-term investors are confident of higher prices and are holding onto their Bitcoins.
Ethereum also grew almost 14% from $1624 to $1923 where its price faced stiff resistance. Earlier ETH prices faced this resistance on May 28 and June 02.
Daily charts show that ETH has little to no resistance above $1910. However, there is some resistance near $1900-$1907. However other technical indicators signal a small break before ETH continues its journey upwards.
- Trading volumes have shrunk in the past three days signaling lower market participation.
- MACD is very close to a negative crossover which signals a fall in price in the near future.
- RSI is flat near the level of 60 and is undecisive since the past week.
On-chain data shows that there has been a decline in exchange transactions which signals lower market participation. This could be a sign of investing for the long term since HODLers often take their funds off exchanges and store them in cold storage.
However, the total deposited value in the ETH 2.0 Deposit Contract has just reached an all-time high of $47.3 Billion. This shows increasing trust and hopes for a higher price in the near future..
Previous ATH of $47,081,333,107.44 was observed on 22 June 2023
— glassnode alerts (@glassnodealerts) June 23, 2023
What to do?
Currently, the best course of action is to wait and watch and let Bitcoin and Ethereum cross their respective resistance at $31,200 and $1910 respectively. On-chain data shows that the fundamentals and accumulation are strong. A move beyond these resistances can help you real good profits.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.