What Bitcoin, Ethereum exchange flows say about the crypto market’s future

  • An exchange flow metric showed that the local bottom might be in for BTC, ETH.
  • The market sentiment was not bullish and holder behavior at crucial support levels would be key for the next price move.

Bitcoin [BTC] and Ethereum [ETH] bulls struggled to shift the market dynamic in their favor. The large losses of the past ten days meant that the price was back at a support zone where buyers are expected to halt the sellers.

Ethereum’s MVRV and NVT ratios showed the asset might be undervalued. The liquidity pocket at $3500 could see a short squeeze, but momentum was bearish otherwise.

Meanwhile, another BTC investigation showed that mining activity had receded and that miners were selling Bitcoin. However, the selling pressure had begun to drop in intensity over the past two days.

AMBCrypto decided to look at the movement of both assets from exchanges to gauge the market sentiment. It revealed that bulls might not have too much to cheer for yet.

What does the exchange netflow metric indicate?

The exchange net flows metric offers valuable insights into the market. When the flows are positive, it shows inflows are greater.

This in turn is a sign of potential selling pressure on the asset, as it implies participants are sending the crypto to exchanges to sell them.

Values below zero mean that outflows are greater, which is a good sign for buyers.

It indicates that market participants are withdrawing their assets from exchanges, likely to place them in safer storage, and indicates accumulation.

Ethereum Net flows

Source: CryptoQuant

The 30-day simple moving averages were used to better understand the exchange flow trends. The ETH inflows were considerable in mid-March and toward late May.

Both occurrences marked a local top for the price.

In the past month, the net flow was heavily negative, showing accumulation. Over the past eight days, the outflow has slowed down, but the 30DMA net flow remained in negative territory.

Bitcoin Net flowsBitcoin Net flows

Source: CryptoQuant

Meanwhile, Bitcoin saw consistent accumulation in February and March. The 30DMA showed that the flow of BTC out of the exchanges continued to dominate.

In late April and on the 21st of May, there were spikes in the BTC inflow, but they were exceptions to the trend.

Are Bitcoin, Ethereum headed for a consolidation?

Ethereum In/Out of the MoneyEthereum In/Out of the Money

Source: IntoTheBlock

AMBCrypto’s examination of the in/out of the money data from IntoTheBlock highlighted key support regions.

The in/out of money around the price showed Ethereum has a strong bastion of support from $3080-$3180 and $3280-$3381. Similarly, the $3486-$3586 is also a staunch resistance.

Bitcoin In/Out of the MoneyBitcoin In/Out of the Money

Source: IntoTheBlock

Read Bitcoin’s [BTC] Price Prediction 2024-25

For Bitcoin, the $59,450-$61,263 is support and $63,148-$64,960 resistance.

This meant that the current price consolidation of both these crypto market leaders could be confined within these levels and lead to a range formation.

Next: After Bitcoin drops below $60,000 twice in a week, what’s next?

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