Bitcoin and Ethereum Face Intense Bearish Pressure, While On-Chain Data Suggests Potential Accumulation and Rebound Signals
Bitcoin and Ethereum Face Intense Bearish Pressure, While On-Chain Data Suggests Potential Accumulation and Rebound Signals
Major cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), are experiencing significant downward pressure, with ETH breaking the $3,000 floor and BTC raising fears of falling below $90,000. Both assets have seen declines of over 4-5% amidst persistent bearish momentum. However, amidst this short-term volatility, on-chain data reveals intriguing counter-signals. Ethereum is nearing a historical accumulation level, just 8% away from long-term holders' cost basis, suggesting strong underlying support for strategic buyers. Similarly, Bitcoin's Stablecoin Supply Ratio (SSR) has flashed a 'buy signal,' historically preceding price surges, despite current bearish sentiment.
Crypto Market Retreats: BTC and ETH Under Siege
The cryptocurrency market is grappling with significant bearish sentiment, impacting its two largest assets, Bitcoin (BTC) and Ethereum (ETH). Ethereum, in particular, has failed to hold above the crucial $3,150 level, extending losses and dipping below the $3,000 floor. ETH is currently down over 5%, struggling to recover amidst a fresh decline. Technical indicators, including the Hourly MACD and RSI, reinforce this bearish outlook, signaling further downside potential towards the $2,950 and potentially $2,880 levels if current support fails.
Bitcoin is facing similar challenges, unable to sustain recovery above $95,000 and now trading below $93,000. The asset has shed over 4% of its value, with fears mounting that the $90,000 support level may not hold. A bearish trend line at $95,850 and technical indicators like the MACD and RSI underscore the persistent selling pressure. Should BTC fail to regain momentum, it could test lower supports at $90,500, $90,000, and even $88,000 in the near term.
On-Chain Data Hints at Underlying Strength and Accumulation
Despite the immediate price weakness, on-chain metrics offer a glimpse into potential long-term opportunities. Ethereum is approaching a historically significant accumulation level, identified as the Accumulation Addresses Realized Price at $2,895. This level represents the average cost basis for long-term investors who have consistently accumulated ETH during previous market cycles. Historically, dips towards this zone have acted as robust support, attracting strategic buyers and leading to price stabilization and subsequent recoveries. Long-term holders have demonstrated strong conviction, continuing to accumulate even during periods of extreme market fear.
For Bitcoin, the Stablecoin Supply Ratio (SSR) has entered a 'buy territory,' suggesting that a significant amount of 'dry powder' (stablecoins) is available in the market relative to BTC's market cap. This indicator has historically coincided with market bottoms or preceded price surges. While the current price action for BTC remains bearish, this SSR signal suggests a potential rebound could be incoming, indicating a high stablecoin buying power ready to be deployed into Bitcoin.
The confluence of short-term price struggles and long-term accumulation signals paints a complex picture for the crypto market. While bears currently dominate the immediate price action, on-chain fundamentals indicate that key support levels and strategic buying opportunities may be emerging for both Bitcoin and Ethereum.