Overview

• Market data suggests a potential local bottom for both Bitcoin and Ethereum.
• Negative market sentiment remains prevalent, with holder behavior at critical support levels playing a crucial role in determining future price movements.

Bitcoin and Ethereum are facing challenges in altering the market dynamics to favor the bulls.

Following significant declines in the last ten days, both cryptocurrencies have returned to a support area where buyers are expected to counterbalance the sellers.

Valuation and Activity Insights

Ethereum's MVRV and NVT ratios hint that the asset may be undervalued.

Although a liquidity pocket at $3500 could trigger a short squeeze, the overall trend remains bearish.

Conversely, an analysis of Bitcoin's recent activity indicates a decline in mining operations and miners liquidating their Bitcoin holdings.

Nonetheless, the selling pressure has shown signs of easing over the past two days.

The movement of both assets to and from exchanges has been scrutinized to assess market sentiment.

The results suggest that bullish investors might not have much reason for celebration at the moment.

Interpretation of Exchange Netflow Metrics

The exchange netflow metric offers valuable insights into market dynamics.

Positive flows indicate potential selling pressure, signifying that participants are transferring their cryptocurrencies to exchanges for selling.

Contrastingly, values below zero imply greater outflows, which bodes well for buyers.

This indicates that market participants are withdrawing their assets from exchanges, possibly for safer storage, hinting at accumulation.

For Ethereum, notable inflows were observed in mid-March and late May, both coinciding with local price peaks.

In contrast, the net flow has been consistently negative over the past month, indicating accumulation.

Bitcoin witnessed continuous accumulation in February and March.

The 30-day simple moving average illustrates that Bitcoin outflows from exchanges continue to exceed inflows.

Consolidation Outlook for Bitcoin and Ethereum

A detailed analysis of the in/out of the money data from IntoTheBlock revealed crucial support levels for Bitcoin and Ethereum.

Ethereum finds robust support in the $3080-$3180 and $3280-$3381 ranges, with $3486-$3586 acting as significant resistance.

For Bitcoin, the $59,450-$61,263 range serves as a support zone, while $63,148-$64,960 presents resistance.

These findings imply that the current consolidation phase for these leading cryptocurrencies may be limited within these ranges, potentially leading to range-bound trading.