Tuesday dawned a dreary overcast day for the wider crypto space as the majority of the coins continue to depreciate in their value. Notably, Bitcoin and Ethereum have faced a rejection at crucial resistance zone slipping to their local lows. Whilst buy the dip sentiment is on the rise, both of the dominant assets could further correct their immediate lows to initiate a bullish divergence.
A crypto analyst Micheal Van De Poppe who is pretty optimistic of the bull season by early 2022 has mentioned critical levels to be retested. Albeit sell-off has been underway over the past month, further slip to the local lows would be requisite in order to confirm the bullish divergence, he further added.
Bitcoin (BTC) :
In recent sell-off Bitcoin price has lost its value below 20 days MA, plummeting to a bottom of $47k. Howbeit, A crypto analyst Van De Poppe expects the price to further correct at $46,370 in order to confirm the bullish divergence. After facing a heavy rejection at $49.2k, the asset flipped to a downward move. Post triggering bullish divergence, the important resistance levels to pass would be $50,619 and $51,426.
On the other hand, recent analytics from Santiment confirms that Bitcoin supply on exchanges plummeted to a 31-month low hinting at a trend reversal. The total BTC balance held in exchanges is at its lowest supply rate since May 15, 2019, traders are moving their coins to store in cold wallets.
Ethereum (ETH) :
As there has been a steady rise in Ethereum sell orders, ETH price has clearly lost its value below 20-50-200 days MA. On the other hand, technical indicator RSI has been moving edgewise of oversold territory over the past one month that has tormented holders. However, A crypto analyst Micheal Van De Poppe signifies whilst the asset has failed to hold a significant strength above $4200, the asset needs to retest between strong bottom support of $3500 to $3600 to commence with an upward rally.
In another interesting part, a huge chunk of Ethereum appears to be slowly making its headway to cold wallets. A recent report from Santiment confirms that the top 10 non-exchange ETH addresses (Usually addresses stored their ETH in cold wallets) clearly outstripped the top 10 ETH largest exchange addresses. Whilst the top 10 Ethereum addresses on exchanges hold a total of 3.82 million tokens, top-10 Ethereum addresses hold a whopping 24.78 million ETH.
Collectively, as buy the dip sentiment has been on the rise, both of these market leaders could soon commence with their bull rally. Whilst some move their asset to cold wallets, some are occupied with buying opportunities. As a whole, the next two weeks would play a decisive role to get a clear picture of the market scenario.