On-chain data is bullish: There are more and more currency hoarding parties, and BTC inflows to exchanges have dropped to the lowest in nearly a decade

Cryptocurrency markets were in consolidation mode on Tuesday, with Bitcoin continuing to hold above $63,000 while most altcoins edged lower.

According to comparison data, the trading price range of Bitcoin on Tuesday was US$62,815 to US$64,445, with both bulls and bears evenly matched. At the time of writing, BTC is trading at $63,010, down 0.5% in 24 hours.

Among altcoins, most of the top 200 coins by market capitalization are trending downward. AIOZ Network (AIOZ) and Jito (JTO) led the gains, rising 13.9% and 12.9% respectively, with Ethena (ENA) rising 7.2%. Helium was the biggest loser, down 5.6%, followed by Book of Meme (BOME) down 5.6% and Celestia (TIA) down 5.5%.

The current overall market value of cryptocurrency is US$2.33 trillion, and Bitcoin’s dominance rate is 53.4%.

BTC inflows to exchanges drop to lowest in nearly 10 years

Another set of data that investors are paying attention to is Bitcoin inflows to cryptocurrency exchanges , which recently hit its lowest point in nearly a decade, has seen a major shift in holder sentiment this year as Bitcoin investment enters a new era of institutional participation, which could mean a bullish recovery is imminent.

According to data from CryptoQuant, the number of investors looking to sell BTC has been declining since February 2018. MA-365D exchange inflows dropped from 90,000 to 36,000, and exchange inflows are currently at 20,000 BTC, which is the lowest since 2015 (when Bitcoin was trading below $1,000 per coin) .

Meanwhile, CryptoQuant analyst Axel Adler noted that long-term holders (LTH) have also stopped selling their tokens and started accumulating again, which has historically been bullish of.

Expected Volatility

Secure Digital Markets analysts noted: “Bitcoin has been trading between $62,700 and $64,700 since Saturday. The U.S. dollar index and the 10-year Treasury yield have The continued decline has supported valuations in risk assets. A break above the $65,000 mark certainly bodes well for the bullish trend." Although Bitcoin is currently consolidating, analysts noted that the recent rally "has inspired cryptocurrency options trading. Enthusiasm: Call volume significantly outpaced put volume, indicating bullish sentiment. Data showed demand for out-of-the-money calls with strike prices between $70,000 and $100,000. Increase. According to Deribit data, traders secured more than $688 million in call options at $100,000 strikes across expirations, marking the highest notional open interest on the platform.

Market analyst Bloodgood said that in the spot market, “Buyers stepped in heavily below $60,000 and liquidated late short positions. It currently remains at the weekly support level of $58,000 to $59,000, but bulls The strength needs to continue or sooner or later it will fall back to this level."

Bloodgood analysts say the daily level we are interested in now is just below $65,000, which will be. Telling us whether this rally will continue higher or fall back below $60,000, on the daily chart we can see that the clear downward trend is continuing with a new low below $57,000. ”

Looking at the technical indicators, bulls would like to see higher highs form, which would mean seeing Bitcoin rise above $67,000, while bears would like to see this daily resistance The level remains unchanged and brings Bitcoin back below $60,000, where bulls and bears will continue to battle it out this week when it comes to the broader market and the forces affecting the asset’s price. At the time, Bloodgood said, “Macro factors have been swinging between hopes for a soft landing and dovish Fed policy and concerns about a resurgence of inflation. ”

The boost bulls need is Friday’s nonfarm payrolls report (NFP), which revealed that the U.S. economy added 175,000 jobs in April 2024, up from an upwardly revised 315,000 jobs in March. Employment has slowed, well below market expectations for job growth of 243,000.

Normally, a weak job market is not what most people would consider good news, but in this case," Bloodgood concluded. In this case, this is a good thing for stocks and cryptocurrencies because it prompts the Fed to take a more dovish tone. ”

Data provided by Alternative shows that overall sentiment in the cryptocurrency market remains in “greedy” territory, with some analysts saying that means further weakness is needed to ensure excess froth is cleared from the market.

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