After Bitcoin and Ethereum lost price support over the last 24 hours, the crypto market sentiment reverted to “extreme fear.” On-chain data indicates increasing selling pressure, which could result in larger losses.
Bitcoin and Ethereum bring difficulties
Bitcoin and Ethereum appear to be headed for significant losses after losing key support areas.
Over the last 24 hours, nearly $300 million in long and short positions have been liquidated in the cryptocurrency market. According to data from the analytics platform Coinglass, the losses accelerated shortly after Bitcoin fell below $28,000 and Ethereum lost $1,800 as support.
Market participants appear to be rushing to exchanges to sell some of their tokens.
According to on-chain data, whales holding 1,000 to 10,000 BTC have offloaded or redistributed more than 30,000 BTC, worth approximately $870 million, in the last 24 hours.
The increase in network activity corresponds to a significant increase in the number of tokens flowing into well-known cryptocurrency exchange wallets. During the same time period, more than 10,000 BTC were sent to trading platforms, putting pressure on the flagship cryptocurrency.
While sell orders flood cryptocurrency exchanges, Bitcoin’s support appears to be frail.
According to IntoTheBlock’s In/Out of the Money around Price model, there is no significant demand wall beneath Bitcoin that could prevent it from suffering further losses. A massive supply barrier between $29,190 and $30,070 can be seen, with 1.46 million addresses purchasing over 900,000 BTC.
To have a good chance of recovering, Bitcoin would need to quickly reclaim this critical area as support. Failure to do so may cause panic among these underwater addresses, resulting in a sell-off that sends BTC back to the May 12 low of $25,370 or even $21,000.
Although on-chain metrics show no increase in the number of ETH flowing into known cryptocurrency exchange wallets, the Global In/Out of the Money model reveals a lack of demand walls.
The most significant level of support for Ethereum is around $730, where over 13.31 million addresses purchased over 13.25 million ETH. Based on past transactions, Ethereum is unlikely to recover and enter a new uptrend until it reaches a market bottom around $730 or climbs above $2,550.
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