- Bitcoin price shows smart money accumulation signals. A bottom may be near.
- Ethereum price is likely to witness an influx of volatility, a swing trader's approach may be the most suitable.
- Ripple price remains in a bearish stronghold based on recent bearish influence.
Part two of an Elliott Wave, technical, and on-chain anlalytical thesis used to gauge current market behavior and forecast the next directional moves in the crypto market.
Bitcoin price looks bullish under the hood
Bitcoin price currently trades at $19,982. The recent breach of the $20,000 barrier has many analysts calling for a sweep-the-lows event of the June 18 bottom at $17,622. Based on the technicals, the call is justified. The Volume Profile shows an uptick near the top of the August bullrun, signaling smart money involvement. Additionally, the bears have persistently rejected Bitcoin's re-entrance of the $20,000 barrier on intra-hour time frames.
Still, a few on-chain analytical tools convey a different message. For example, the Santiments' 365-day Bitcoin Circulation map shows a massive decline in yearly circulating tokens. There are currently 5.96 million tokens in circulation, which is the lowest reading in the last six years. The last time this amount of tokens were in active circulation was in 2016, when Bitcoin traded at $5,711.
Santiment’s Price, 365-Day Circulation-Supply On & Off Exchanges Indicators
The Total Bitcoin Supply On All Crypto Exchanges indicator continues to fall. At 1.74 million currently, the exchanges are holding the lowest amount of liquid Bitcoins since October 2018, just before Bitcoin fell from $6,000 to the $3,000 lows.
Lastly, the Supply Outside of Exchanges indicator is going parabolic. At a new all-time high of 2.75 million Bitcoins, this indicator suggests whoever is buying Bitcoin is uninterested in short-term gains. In theory, the lower supply of tokens on the exchanges creates more demand for the token amongst retail and institutional investors.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Ethereum price tells a different story
Ethereum price has outperformed Bitcoin this summer by nearly 150%. Compared to Bitcoin’s 42% rally, the decentralized smart contract saw an increase of 126% since the June 18 liquidation.
ETH price currently auctions at $1,571. The technicals show a downtick in volume amidst the current sell-off, which is an optimistic signal of more gains to come.
Still, on-chain analysis tools suggest ETH will have difficulty repeating its impressive performance. Unlike Bitcoin, Santiment's Total Supply on Exchanges Indicator is actually turning to the upside.
Santiment’s Price, Volume, 365-Day Circulation-Supply On Exchanges Indicators
Currently, at 17.6 million tokens, the last time the Ethereum inventory was this high on all exchanges was in November 2021, when the ETH price auctioned between the $4,200-$4,600 range.
In theory, the indicator suggests Ethereum price could be a volatile token ideal for day traders in the coming weeks. However, new all-time highs will be harder to accomplish than for its Bitcoin counterpart.
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
Ripple price remains in bearish limbo
XRP price currently auctions at $0.325 as the digital remittance continues to underperform relative to its peers. Since June, the digital remittance token has rallied by 35%. What had once appeared to be a profit-taking consolidation near $0.37 ended up morphing into an all-out sellers frenzy, with the Ripple price declining 10% in one day on August 19.
The bearish August 19 engulfing candle is now the largest candle for the summer, hinting that the bears are now in control. The Volume Profile Indicator is progressively increasing in transactions amidst each market decline. Lastly, the XRP price has witnessed a rejection from both the 8- & 21-day simple moving averages, which will likely entice sidelined bears to jump in for more downside potential.
XRP/USDT 1-day chart
When combined, the XRP price could dispel a whirlwind of pain in the coming weeks. The bears are likely aiming for targets between $0.28 and $0.24. Traders looking to join the trend should keep an invalidation point above $0.41.
Traders should be wary of placing an entry too soon as closing a candle above $0.33 on the daily level could catalyze a sharp rise towards $0.37 in the short term.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Binance CEO calls CFTC suit “disappointing” as district court halts Voyager $1 billion sale to Binance.US
Voyager’s deal with Binance’s United States entity, Binance.US, faced another hurdle on March 27, the same day that the Commodity Futures Trading Commission (CFTC) went after the crypto exchange. This is the second time in the span of a month that Voyager’s deal has been objected against by the government.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity
Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
This is how EOS holders responded to the network's EVM testnet launch, what to expect this week
The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet. Well, it is finally here and the community is elated as it brings them closer to the mainnet release on April 14.
XRP price recovers above $0.44 as court ruling approaches, will Ripple win against the SEC?
XRP price has kept its momentum, flashing green on the one-day timeframe as the countdown to the Ripple vs SEC lawsuit continues. The remittance token is moving in tandem with our prediction last week, soaring by a significant margin to secure a place among the best-performing cryptocurrencies on a one-week timeframe.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.