What Bitcoin, Ethereum exchange flows say about the crypto market’s future

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Bitcoin and Ethereum saw negative exchange flows in recent days, which is a positive sign for investors- but a breakout need not occur soon.

The market sentiment was not bullish and holder behavior at crucial support levels would be key for the next price move.bulls struggled to shift the market dynamic in their favor. The large losses of the past ten days meant that the price was back at a support zone where buyers are expected to halt the sellers.showed the asset might be undervalued. The liquidity pocket at $3500 could see a short squeeze, but momentum was bearish otherwise.had receded and that miners were selling Bitcoin.

AMBCrypto decided to look at the movement of both assets from exchanges to gauge the market sentiment. It revealed that bulls might not have too much to cheer for yet.The exchange net flows metric offers valuable insights into the market. When the flows are positive, it shows inflows are greater. This in turn is a sign of potential selling pressure on the asset, as it implies participants are sending the crypto to exchanges to sell them.It indicates that market participants are withdrawing their assets from exchanges, likely to place them in safer storage, and indicates accumulation.The 30-day simple moving averages were used to better understand the exchange flow trends. The ETH inflows were considerable in mid-March and toward late May.

In late April and on the 21st of May, there were spikes in the BTC inflow, but they were exceptions to the trend.The in/out of money around the price showed Ethereum has a strong bastion of support from $3080-$3180 and $3280-$3381. Similarly, the $3486-$3586 is also a staunch resistance.This meant that the current price consolidation of both these crypto market leaders could be confined within these levels and lead to a range formation.Akashnath Sumukar works as a Senior Journalist at AMBCrypto.

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