Bitcoin led the market gains with a quick recovery above $20,000. Ethereum and XRP saw hefty gains along with other top altcoins.
The global crypto market cap eventually broke the $1 trillion mark, which supported the bullish market. Bitcoin (BTC), Ether (ETH) and XRP all posted high daily gains as the bears finally faded into the background.
After the crypto market started going green on Tuesday, over $1.2 billion in brief liquidations took place in about 24 hours. The crypto market finally broke out of the tight price range it had been trading in since September.
Despite the notable gains and bullish sentiment across the market, BTC price had stabilized at the $20,600 level. On the other hand, the price of ETH and XRP also faced rejection at their upper resistance levels.
Bitcoin On-Chain Analysis: Bulls May Have to Wait
At the time of writing, bitcoin price was trading at $20,598.99, down 1.17% on the daily timeframe. Data from IntoTheBlock’s In/Out of Money Around Price Indicator suggested that $20,323 acted as the next significant support for BTC price, where 843,000 addresses held over 725,000 BTC.
Source: IntoTheBlock
As BTC’s near-term price action weakens, a drop below $20,323 could trigger sell-side pressure.
Many in the market thought a bitcoin bottom was in place; However, data from CryptoQuant showed that on-chain validation for the crypto market bottom was still missing.
During the 2015 and 2018-2019 cycles, bitcoin price moved in similar range-bound dynamics, with price volatility falling to its lowest levels. When volatility drops to historically low levels, it indicates that the downtrend is coming to an end. However, during the 2018 cycle, low price volatility quickly followed a 50 percent drop in bitcoin price from $6500 to $3200 in just one month.
At the time of writing, MVRV and UTXO Realized Cap 6 months and older ages showed that Bitcoin price was in the value range. A significant amount of time must elapse before the UTXO age group’s realized price of 1-3 months is exceeded for a sustained growth trend; for now, that level sits at the $21,264 mark.
BTC UTXO Age Groups | Source: CryptoQuant
As can be seen in the chart above, the UTXO age groups are still a long way from bottom signals. Furthermore, the Puell Multiple for bitcoin price was still not in the “strong buy area” as it moved to 0.62.
Bitcoin Puell Multiple | Source: CryptoQuant
While BTC exchange reserves have declined over the past few days, leading to less selling pressure, the net unrealized gain and loss (NUPL) is still in the capitulation phase. The NUPL was below 0 presenting buy signals; however, it is not as attractive as during the 2020 low when it was -0.18.
Bitcoin NUPL | Source: CryptoQuant
Ethereum On-Chain Analysis: Price at a Crossroads
Ethereum price is trading at $1,552 at press time, posting a daily loss of 1.41%. ETH price had recouped most of the losses in mid-September that brought its value below the $1200 mark. However, there were still significant roadblocks ahead for ETH bulls.
Data from Glassnode showed that the number of active ETH addresses (7d MA) just touched a 3-month low of 28,431,935 despite the recent gains.
ETH number of active addresses | Source: Glassnode
Additionally, ETH 365-day and 30-day MVRV posted healthy uplegs, recovering from the June and July lows. However, a slight downtrend on MVRV suggested that gains may be limited and ETH bulls could keep the fight going forward.
If ETH price falls below the $1531 mark in the future, it could result in increased selling pressure for the coin. Data from IntoTheBlock showed significant resistance for ETH at the $1579 level, where over 1 million addresses are holding 2.46 million ETH.
Source: IntoTheBlock
XRP On-Chain Analysis: Where’s the Catalyst?
As for XRP price, the cryptocurrency, ranked 6th by market cap, has only seen 3% gains over the past three days. At press time, XRP price was trading at the $0.4698 level, posting gains of 0.36% and 1.79% on the daily and weekly charts.
XRP price has been in a prolonged downtrend since October 10th, despite Ripple’s victories in the ongoing regulation battle.
Whales have accumulated nearly 300 million XRP over the past few months, but it hasn’t impacted the XRP price much. Meanwhile, development activity and overall supply of stablecoins held by whales with more than $5 million saw a sustained downtrend.
Source: Santiment
Additionally, active addresses didn’t see a bounce, although prices made a few moves higher.
Source: Santiment
XRP price could see some gains moving towards $0.488 if retail volume can support the price momentum. However, if the XRP price falls below the $0.38 mark, it could spell trouble for the coin.
Disclaimer: All information contained on our website is published to the best of our knowledge and belief and for general information purposes only. Any actions taken by the reader based on the information contained on our website are entirely at your own risk.
Disclaimer
All information contained on our website is published to the best of our knowledge and belief and for general information purposes only. Any actions taken by the reader based on the information contained on our website are entirely at your own risk.
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