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Bitcoin’s price has recently experienced notable volatility, driven by significant market developments and investor activity. Following an initial decline in recent days, BTC surged above $94,000 on Sunday. This increase was fueled by reports of an upcoming US strategic crypto reserve that includes BTC and other major digital assets. However, as of today, BTC is trading just below $93,000, signaling an unstable upward momentum in the crypto market. Amid this price movement, a recent analysis by CryptoQuant analyst KriptoBaykusV2 highlights an evolving pattern in Bitcoin’s net exchange flow, offering insight into investor sentiment. This data suggests that exchange inflows and outflows may play a crucial role in shaping Bitcoin’s short-term price direction. Related Reading: Top Bitcoin Inflows Hit Year-High on Binance – Should You Be Concerned? Bitcoin Exchange Flows and Investor Sentiment According to KriptoBaykusV2, on February 25, Bitcoin saw a significant inflow to exchanges, with approximately 8,400 BTC being deposited. Historically, large inflows suggest increased selling pressure, as traders move assets to exchanges in preparation for liquidation. This was followed by a decline in Bitcoin’s price, aligning with previous market trends where increased supply on exchanges often leads to downward price movements. The following day, February 26, Bitcoin experienced a shift, with a substantial amount of BTC being withdrawn from exchanges. Large-scale outflows typically indicate a preference for holding, reducing the available supply on exchanges and potentially supporting price stability. This shift coincided with Bitcoin’s price finding support and beginning to recover, reflecting investor confidence in the asset’s long-term prospects. The analyst noted: In summary, those closely monitoring Bitcoin’s exchange movements should take note: Large inflows into exchanges may indicate heightened selling pressure, requiring caution. On the other hand, significant outflows suggest that investors are opting to hold, which could lead to price appreciation. We will see in the coming days how these trends continue. Related Reading: Bitcoin Is Enough—Coinbase CEO Rejects Altcoins For US Reserves Short-Term Selling and Market Trends Meanwhile, a separate analysis by another CryptoQuant analyst, abramchart, suggests that Bitcoin holders have started selling at a loss. The Spent Output Profit Ratio (SOPR) index, which measures the profitability of short-term investors, according to the analyst recently recorded a value of 0.95. This level, the lowest since August 2024, suggests that more traders are selling BTC at a loss, an indication of capitulation. Historically, such periods have been followed by market recoveries as selling pressure eases and accumulation phases begin. The CryptoQuant analyst wrote: The SOPR measures the proportion of Bitcoin wallets that have held Bitcoin for more than 1 hour and less than 155 days. Values over ‘1’ indicate more short-term investors are selling at a profit. Values below ‘1’ indicate more short-term investors are selling at a loss., which is a sign of capitulation and a return to an upward trend. Featured image created with DALL-E, Chart from TradingView
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Ethereum Price Crashes to $2,000—Is More Downside Ahead?
Ethereum price started a fresh decline from the $2,550 zone. ETH is now back below $2,200 and might decline further in the near term. Ethereum started a fresh decline below the $2,350 support zone. The price is trading below $2,250 and the 100-hourly Simple Moving Average. There is a new bearish trend line forming with resistance at $2,160 on the hourly chart of ETH/USD (data feed via Kraken). The pair must clear the $2,160 and $2,250 resistance levels to start a recovery wave. Ethereum Price Dives 15% Ethereum price failed to clear the $2,550 resistance zone and started a fresh decline, like Bitcoin . ETH gained bearish momentum below the $2,400 and $2,350 support levels. There was a clear move below the $2,250 support zone and the 100-hourly Simple Moving Average. The price even dived below the last low and tested the $2,000 zone. A low was formed at $2,003 and the price is now consolidating losses below the 23.6% Fib retracement level of the recent decline from the $2,550 swing high to the $2,003 low. Ethereum price is now trading below $2,250 and the 100-hourly Simple Moving Average . On the upside, the price seems to be facing hurdles near the $2,080 level. The first major resistance is near the $2,150 level. There is also a new bearish trend line forming with resistance at $2,160 on the hourly chart of ETH/USD. The main resistance is now forming near $2,275 and the 50% Fib retracement level of the recent decline from the $2,550 swing high to the $2,003 low. A clear move above the $2,275 resistance might send the price toward the $2,350 resistance. An upside break above the $2,350 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,450 resistance zone or even $2,500 in the near term. Another Decline In ETH? If Ethereum fails to clear the $2,160 resistance, it could start another decline. Initial support on the downside is near the $2,020 level. The first major support sits near the $2,000 zone. A clear move below the $2,000 support might push the price toward the $1,880 support. Any more losses might send the price toward the $1,750 support level in the near term. The next key support sits at $1,640. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $2,000 Major Resistance Level – $2,160 NewsBTC
Cardano’s Surge Following Trump’s Crypto Reserve Announcement Raises Questions of Sustained Momentum
Cardano (ADA) has experienced a remarkable surge following the announcement of a U.S. Crypto Strategic Reserve, igniting a flurry of market speculation. This rapid price increase raises questions about the NewsBTC
