Last week was mixed. Crypto prices fell hard from last weekend, ending in a climax on Monday. After that, prices recovered, exploding higher by Thursday, August 8.
Since then, prices have been moving sideways.
OI has ramped up massively at our lows here. It's now back to the same level it was at prior to this last small move down.
Squeeze incoming, not sure in which direction but we should know soon enough. https://t.co/8gKLC6O6GF pic.twitter.com/NFhMzxb5E9
— CrediBULL Crypto (@CredibleCrypto) August 12, 2024
Crypto Prices Consolidating After Turbulent Week
Still, there is good news.
The expansion on August 8 benefited crypto assets, especially Bitcoin, Ethereum, XRP, and other top altcoins.
At one point, XRP, for instance, breached $0.62 before cooling off.
Technically, the uptrend remains from an effort-versus-result perspective.
Looking at the Bitcoin chart, for example, prices are moving sideways inside the August 8 bull bar.
(BTCUSDT)
At the same time, engagement (measured using trading volume) remains low and suppressed.
Even so, since prices are still within the August 8 trade range, technically, aggressive traders can use lower prices to scoop at a discount.
The same formation can be seen in Ethereum and Solana, where prices remain inside the August 8 bar.
After the court ruling on August 7, XRP prices also ripped higher in a bullish formation, but over the weekend, prices fell slightly.
(XRPUSDT)
If Bitcoin expands and breaches $62,000, the uptrend of August 8 will likely resume, lifting altcoins.
Beyond candlestick arrangement, traders also look at on-chain formation for hints of what lies ahead.
Massive Outflows of Ethereum and Bitcoin From CEXes
According to CryptoQuant data, there is a massive outflow of coins from centralized exchanges like Binance.
So far, the Bitcoin reserves on centralized exchanges have been on a downtrend, dropping to levels last seen in November 2018.
(Source)
Over the last four weeks alone, CryptoQuant data shows that more than 99,000 BTC were pulled from exchanges.
The same trend can be seen in Ethereum.
(Source)
Trackers reveal that Ethereum reserves across exchanges continue to dwindle, falling to 2020 lows.
From September 2022, CryptoQuant data shows that over 11 million ETH were moved from exchanges.
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Will ETH and Bitcoin Prices Rally?
Usually, when coins are moved from exchanges, it can be interpreted that holders are confident of what lies ahead.
Here’s why.
Unlike on platforms like Coinbase, when BTC, ETH, or any other altcoin is moved to a non-custodial wallet like MetaMask, it becomes hard to sell immediately. Funds must first be moved (again) for instant conversion to USDT or fiat.
Therefore, the exodus of ETH and BTC from exchanges suggests that holders are not only upbeat about the future but also keen to experiment with other on-chain activities like DeFi.
The more coins are pulled from exchanges, the scarcer they become, the more likely prices increase.
(Source)
Following the approval of spot Bitcoin and Ethereum ETFs, demand for the underlying coins will likely pick up momentum in the coming days, a huge boost for bulls.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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