Key Points
- Bitcoin and Ethereum exhibit bullish market structures on the 12-hour chart.
- Whales are rapidly accumulating both cryptocurrencies, suggesting the bullish trend could continue.
Bitcoin and Ethereum are both showing bullish market structures on their 12-hour charts.
These key cryptocurrencies have continued to trade within a short-term range. The higher timeframe price charts indicate a bullish bias. Notably, whales have been accumulating both Bitcoin and Ethereum at a fast pace.
Bitcoin’s Market Structure
Bitcoin’s liquidity is high, potentially limiting attempts to break out in either direction. The Fibonacci retracement levels, plotted for the rally from $50.5k to $73.7k, showed that the 50% retracement level was tested as support in mid-March. Bitcoin was trading at $50k at the time of writing.
The RSI on the 12-hour chart was only at 57, indicating bullish momentum but not significant strength. The Chaikin Money Flow was at +0.01 and would need to climb above +0.05 to show significant capital inflow. If Bitcoin falls below $60.7, the market structure would turn bearish.
Ethereum’s Market Structure
Ethereum’s momentum has slowed over the past two weeks. Its 12-hour RSI showed a reading of 54, signaling bullishness. The 78.6% retracement level saw a good reaction from buyers. Despite the buying volume in the past ten days, the OBV could not embark on an uptrend. It has sunk almost as low as the January highs, even though the price of ETH is close to 40% higher.
This lack of demand suggests Ethereum bulls could take time to catch their breath before attempting the next rally. At press time, it faced some short-term resistance at $3680.
Coinalyze metrics noted the steep selling pressure in the spot markets in March. The spot CVD trended downward this month and only recently flattened out from the southward spiral.
The Open Interest has climbed considerably from the 17th of March. It has risen from $9 billion to $10.31 billion, while Ethereum jumped from $3.2k to $3.6k. This indicates some bullish conviction amongst speculators in the Futures market.
