Bitcoin (BTC) and Ethereum (ETH) started the week off on a positive note, rising 2.6% and 2.5%, respectively, on the 15th.
Bitcoin is trading 3% below its 20-day moving average at $28,300 at the time of writing. Meanwhile, Ethereum is 1.9% below the 20-day moving average. With both breaking out of the lower end of the Bollinger Bands last week, all eyes will be on whether the 20-day moving average can recover.
Declining trading volume
Volume is the focus, as the sentiment that influences price movements can be strengthened or weakened by the level of trading volume. Bitcoin and Ethereum jumped 34% and 35%, respectively, on Friday across all spot markets, but neither broke above the 30-day moving average.
The declining trend in trading volumes suggests that new market participants are reluctant to take risks and existing market participants are reluctant to buy more. CoinDesk’s Bitcoin Trend Indicator (BTI) remains within the “neutral” signal it put out on May 10, supporting a similar view.
RSI is Neutral
The RSI (relative strength index) is also within the neutral range, at 44.17 for Bitcoin and 46.25 for Ethereum.
The RSI fluctuates between 0 and 100 and is used to measure momentum. Above 70 indicates the potential for overbought, and below 30 indicates the potential for oversold.
Since 2015, Bitcoin and Ethereum’s 30-day price movements after similar RSI readings have been relatively muted, with Bitcoin up 4.1% and Ethereum down 2% in the past. ing.
Movement of stablecoins
Absent external factors, investors may view stablecoin movements as an indication of the direction of Bitcoin and Ethereum’s next price moves.
The Stablecoin Supply Ratio (SSR) is a Bitcoin-specific metric that is the market capitalization of Bitcoin divided by the market capitalization of all stablecoins. A lower number indicates higher purchasing power, and a higher number indicates lower purchasing power. So the 11% drop in SSR since May 5 indicates that there is room for purchasing power in the Bitcoin market.
On the other hand, the exchange’s total stablecoin supply is a measure of the total supply of stablecoins held by exchange addresses, and an increase in the total supply can be invested in crypto assets as a whole. Indicates an increase in funds.
Exchange stablecoin holdings are down 47% year-to-date, despite Bitcoin and Ethereum gaining 65% and 53% year-to-date.
However, the decline in SSR indicates that stablecoins are growing relative to Bitcoin and could signal a price increase.
｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
｜Original: Crypto Markets Look to Recapture Momentum Following Down Week
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