Bitcoin‘s price, after making a strong surge in the second half of the year, has been consolidating above 30,000 dollars for some time. The technicals show that the price of the largest crypto, BTC, and the largest altcoin, Ethereum, is now congested and could make a directional explosion at any moment. This suggests an imminent breakout either downwards or upwards. But what direction could this breakout be in, and what do on-chain data tell us? Let’s take a closer look.
On-chain data supports an upwards breakout. The crypto analysis firm Santiment drew attention to the net realized loss against the price for BTC, claiming that an upward breakout is approaching.
After three weeks of relatively stagnant price volatility, both Bitcoin and Ethereum are trading with minor losses compared to their previous prices. Average investors move their assets with small losses while the Net Realized Profit/Loss (NRPL) indicator is negatively related to the price, increasing the likelihood of a positive price movement in the short term.
Another positive sign for Bitcoin is that as the price enters the consolidation phase, the whales are accelerating their accumulation, and a strong decline in the amount of BTC in crypto exchanges can be shown.
It was observed that Ethereum’s price pulled back below $1,850 last week, but since then the price has recovered and is approaching the $1,900 level. At this point, it should be noted that Ethereum has a strong support between $1,800 and $1,870. A total of 3.4 million wallet addresses bought 11.2 million in this range.
On the other hand, there is a significant resistance area between $2,040 and $2,100. Noted crypto analyst Ali Martinez reported that 1 million wallet addresses bought 27 million ETH in this range, emphasizing how strong the range is.
At the moment, there is a fierce battle between ETH bulls and bears, but technical indicators support the possibility of a breakout towards $2,050. Any upward movement in BTC and ETH could serve as a significant propellant for the rest of the crypto market.