After a strong rally in the second half of June 2023, the #Bitcoin (BTC) price has been consolidating around the $30,500 level for some time now. As can be seen in the picture below, throughout July $BTC entered a consolidation process, showing signs of compression at these levels. This indicates that there is a possibility of a breakout in the near future.
Consolidation means that the price movement of an asset is trapped within a limited range. While this indicates balance between buyers and sellers, it often leads to a breakout to determine the next major move in price.
Here is the Breaking Point in Bitcoin and Ethereum
On-chain data continues to support that the possible breakout could occur to the upside. Crypto analytics firm Santiment points out the net profit loss for Bitcoin (BTC) and #Ethereum ($ETH ).
Santiment notes that after three weeks of fluctuations, both Bitcoin and Ethereum are experiencing slight losses compared to their previous values. Average traders move their assets with small losses. When the Net Realized Profit/Loss (NRPL) indicator is negative relative to price, it indicates a higher likelihood of positive price movement in the future.
This data may lead investors and traders to think that an upward move is more likely if a breakout occurs in the crypto market. The negative NRPL indicator indicates that there are buyers at current price levels and a potential uptrend may be imminent.
But still, the volatility and risks of cryptocurrencies should be taken into consideration. It is important to monitor market conditions carefully and implement the right risk management strategies.
Not Only Bitcoin, Ethereum Is Also Active
Last week, Ethereum (#ETH ) price experienced major price volatility, falling below $1,850. However, it has since recovered and approached the $1,900 level.
It is important to note that Ethereum has a strong support level between $1,800 and $1,870. In this price range, a total of 3.4 million addresses purchased 11.2 million ETH.
On the other hand, there is a significant resistance level between $2,040 and $2,100. Popular crypto analyst Ali Martinez explains that 1 million addresses have previously purchased 27 million ETH in this price range.
This data shows that Ethereum has both a strong support level and is facing significant resistance. Holding the support level and breaking the resistance indicates that Ethereum may gain further upside potential.
By tracking these support and resistance levels, investors and traders can tailor their analysis accordingly to predict future price movements. But as always, it is important to consider the volatility and risks of cryptocurrencies.
