Throughout the week, Bitcoin and the cryptocurrency industry witnessed reduced volatility. Trading within a closed price ceiling, the market bought the dips and sold aggressively on the rallies. The combined market now stands at a valuation of $1.6 trillion as many cryptocurrencies noted upticks after sliding the previous day.
Both Bitcoin and Ethereum have reduced their losses and the two top crypto-assets were currently trading at $35,259 and $2,328 respectively. While the back-to-back sharp corrections from their respective all-time highs have turned investor sentiment negative, at least in the short term, but there could be a much-anticipated respite.
According to fresh new insight, by Santiment’s latest chart, the supply ratios on cryptocurrency exchanges for both Bitcoin and Ethereum are sliding down and has noted a considerable decline, especially after the mid-May crash. This was indicative of the fact that there might not be any major sell-off episodes in the near term that could prove damaging for the two assets. Along the same line, the crypto analytic platform observed,
“Bitcoin and Ethereum are seeing their respective supply ratio on exchanges moving lower since the
initial crypto market-wide dump happened 3 weeks ago. Traders can be encouraged that this indicates less likelihood of further major selloffs.”
Bitcoin’s death cross scares
TWJ had earlier reported that the king coin could face a death cross in the near future. However, the impending pattern formation could very well act as a contrarian signal. While it is true that death crosses have been able to predict massive declines in both, stock and cryptocurrency market, the last time 50 DMA went above the 200 DMA was back on March 26th last year, almost two weeks after the ill-fated Black Thursday crash. At that time, the crossover gave the opportunity to buy the bottom as the price there on recovered substantially.
To top that, the long-term participants have maintained an upward trajectory in terms of accumulation trend. Hence, a lagging indicator might not necessarily be damaging for long-term investors.