Bitcoin and Ethereum: Even on the Rise, the Moment is Still Calm
The growth of BTC and ETH has excited a portion of the market, but we still cannot nail a trend reversal.
In the last week, Ethereum has seen an impressive rally. What’s happening? The coin came from a lateralization, but as of the 13th, we saw a resumption of the market that has already reached 50%.
Some specific factors contribute to this positive moment of the currency. Perhaps the most important is the proximity of the launch of The Merge. Scheduled for September this year, the update will change the project’s consensus mechanism from Proof of Work to Proof of Stake, which promises to bring more efficient power consumption and greater scalability. , in addition to safer, faster and cheaper transactions.
Another equally crucial reason is the Ethereum Community Conference, the largest European event organized by the company, which is taking place between today (19) and 21 July, with large companies, important guests, various lectures and other content on relevant topics related to the community and cryptocurrency markets and other technologies.
On the 13th, the forecasts were confirmed, and the interest rate increase in the US was applied by the Federal Reserve Bank, in an attempt to control inflation. Shortly after this news, Bitcoin even experienced a slight drop of 5%, but the market followed a stable path. However, what happened next was a surprising rally in the main currencies on the market: Bitcoin and Ethereum.
Many analysts expected Ethereum to reach the $900 range, but it has managed to hold on to the $1500 range after this rally. As The Merge approached and the Ethereum Community Conference took place, many were overly optimistic.
It was not something expected, so much so that it took many people by surprise. The rise in Ethereum generated a sell-off of $230 million in futures contracts. With Bitcoin, we also saw reactions in this direction, such as the mysterious whale that in the last 30 days bought 480 million reais in bitcoin.
However, contrary to market movements, on-chain data shows a different path being followed mainly by wallets with more than 1000 BTC. The bullish momentum is being mainly driven by small wallets, which in recent months have been buying and accumulating Bitcoin, but when we look, for example, at wallets with more than 10, 100 or even 1000 BTC, we see a moment of lateralization, and in the case of portfolios with more than 1000, there is a drop.
That is: at the moment, the biggest representatives of the Bitcoin market are taking a little distance. So we really need to be very careful. If the owners of these wallets are not buying, it could be an indication that the moment is cautious and that the coin has not yet found its bottom in the $20K range.
It is impossible to accurately predict the price, but there are several indications of a possible bull trap!
What do you think of the current moment of Bitcoin and Ethereum? Come chat with us on Foxbit’s Discord, a crypto community for traders!