Crypto analysts appear concerned with the market as ETH and BTC on exchanges surge sharply.
– Ethereum and Bitcoin have seen their values declining by over 6% since yesterday.
– As exchanges see increased inflows, on-chain cryptocurrency analysts trust profit-taking is happening.
– Increased selling pressure might see Bitcoin plunging towards the $40K levels and Ethereum to $2.4K.
The crypto exchanges saw flooded Ethereum and Bitcoin tokens over the past 24 hours. Such market actions indicate that investors are interested in booking profits, translating to a massive correction.
BTC Whales Booking Profits
For now, Ethereum and Bitcoin holders appear to sell their assets.
Bitcoin saw a substantial rejection at the $50K resistance zone. After touching this psychological level, the asset has lost around $3,000. That represents a 6.7% plunge. The sudden dropping pressure reflects profit-taking by large investors.
Santiment, a cryptocurrency analytic company, indicates that wallets with BTC worth millions, whales, have been reducing their holdings.
Since yesterday, addresses with 1K – 100K Bitcoins have sold more than 10K tokens, worth around $500 million.
Moreover, a substantial number of digital coins flooded recognized crypto wallets.
Will Clemente, an on-chain analyst, revealed that over 27,000 BTC moved to crypto sites since 20 August. Most of the inflows went to Binance.
The surging Bitcoin supply to crypto wallets and the increasing profit-taking by whales print a negative outlook for BTC’s price actions. That indicated that the assets available for selling have grown, increasing the chances of price downfall.
The IOMAP model suggests that increased selling pressure will have Bitcoin securing support near $45,735. Around this level, almost 856,000 wallets hold more than 440,000 BTC.
Meanwhile, the significant demand zone can absorb some portion of the prevailing selling pressure. However, the recent hurdles can see the leading crypto by market cap dropping towards $40K.
ETH Loses Critical Support
Santiment also revealed ETH tokens moving to exchanges in large numbers. Binance received ETH tokens worth $2 billion over the past day alone. On 25 August, Dino Ibisbegovic, an on-chain analyst, stated that such moves prints an ugly picture on Ethereum’s future price actions.
The increased exchange inflow resulted in magnified selling pressure. That way, ETH lost 7.4% as the leading alt declined to $3,080.
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