Bitcoin and Ethereum self-custody rise; investors bet on these areas
- Bitcoin and Ethereum have struggled to surpass key price levels.
- Positive funding rates indicate bullish sentiment among investors.
Bitcoin [BTC] and Ethereum [ETH] have recently encountered significant price resistance. BTC has faced difficulty surpassing the $30,000 mark, while ETH has consistently struggled to exceed $2,000. Surprisingly, holders exhibited stronger convictions than selling off and held onto their assets more firmly.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Bitcoin and Ethereum struggle to…
Bitcoin breached the $30,000 price zone on the daily timeframe chart around 11 April, but struggled to sustain this level for an extended period. Subsequently, it dropped below $30,000. At press time, it was trading at approximately $26,900, reflecting a small gain.
The price range tool indicated that BTC has experienced a decline of over 10% since testing the $30,000 mark.
Source: TradingView
Furthermore, taking a closer look at Ethereum on the daily timeframe showed that it reached the $2,000 milestone in April. Unfortunately, the upward momentum was short-lived, lasting less than six days.
Since then, ETH has been unable to surpass and maintain that price range. As of this writing, it was trading at approximately $1,800, reflecting a minor gain of less than 1%.
Source: TradingView
Self-custody on the rise
As the prices of Bitcoin and Ethereum continue to fluctuate, an increasing number of holders are opting to secure their assets. Recent data from Santiment revealed a decline in the supply of BTC and ETH on exchanges.
The chart indicated that the current percentage of BTC supply on exchanges was at its lowest since December 2017. Similarly, the percentage of ETH supply on exchanges was the lowest since 2015.
Source: Santiment
As of this writing, BTC’s supply on exchanges was approximately 10%, while ETH’s supply was around 5%. This decline in supply on exchanges could signal an anticipated price uptrend and future bull run for both cryptocurrencies.
Current Netflow and Funding Rate
Analyzing the Netflow data of Ethereum on CryptoQuant showed that there has yet to be a substantial flow in recent days. However, there were more outflows than inflows during this period. The Netflow was negative at the time of writing, indicating an outflow of over 14,000 ETH.
On the other hand, Bitcoin has experienced a more notable flow in recent days, but similar to Ethereum, the dominant trend has been outflows per CryptoQuant. As of this writing, the Netflow for Bitcoin was negative, although there had been minor positive flows on previous days.
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Investors have maintained a bullish sentiment even with the notable movement of ETH and BTC off exchanges. Data from Coinglass revealed that funding rates for BTC and ETH have consistently been positive across various exchanges.
This suggested that most investors were placing bets on a future price increase for both cryptocurrencies.
