Bitcoin is gradually regaining its footing after a brief pause in its upward momentum. At the time of writing, the asset is trading above $118,000, reflecting a 10% increase over the past month. Despite this modest recovery, Bitcoin remains approximately 3.1% below its all-time high, which was reached earlier this month. The current market phase suggests a period of cautious recalibration, as traders assess the sustainability of the latest price movements amid fluctuating on-chain and exchange metrics. One of CryptoQuant’s QuickTake contributors, Darkfost, has drawn attention to a key trend among short-term Bitcoin holders. According to his analysis, on-chain traders, those actively buying and selling on spot markets, are only seeing 13% unrealized gains at present. This segment refers to holders of BTC aged between one and three months, who typically represent more reactive and sentiment-driven behavior. Compared to prior bull cycles, where profits reached as high as 232% in 2012 and 150% in 2021, the current cycle has shown far more restrained profitability, peaking at just 69% before slipping lower. Related Reading: Bitcoin Rally Signal? Analyst Links Binance Spot Volume Surges To Price Upswings Bitcoin Short-Term Holder Behavior Points to Caution Darkfost emphasized that even though Bitcoin’s price remains close to record highs, the current low profit margins held by short-term investors, whose realized purchase price averages around $104,000, may explain the lack of widespread selling. These holders may be waiting for stronger gains before taking profits. However, the analyst warned that if market conditions deteriorate further and these holders start to incur losses, their eventual capitulation could lead to a rapid sell-off. Historically, such capitulations have coincided with price corrections, but also presented entry opportunities for longer-term investors seeking favorable market conditions. In a related post, fellow CryptoQuant contributor BorisVest explored activity among large Bitcoin holders. He noted that whale inflows to Binance have risen sharply, with the 30-day cumulative inflow metric jumping by $1.2 billion in a single day on July 25. This sudden surge coincided with downward price pressure and a rejection at the $120,000 level, sending Bitcoin back toward the $115,000–$116,000 range. BorisVest highlighted that although retail investors have also been transferring coins to exchanges, their activity remains relatively modest in comparison, suggesting that large holders are playing a more dominant role in current market moves. Whale Inflows Add Pressure to Key Support Zone The imbalance between retail and whale inflows is creating a fragile support structure, according to BorisVest. The analyst pointed out that if the current support range around $115,000 fails to hold, Bitcoin could decline toward the $110,000 level. Related Reading: Bitcoin Eyes Bounce off This Support Level In Reversal Campaign For $121,000 Conversely, a strong rebound from this area might set the stage for another push toward the $121,000 mark or even new record highs. The market’s direction in the near term is expected to hinge on how effectively buying demand can absorb the current wave of whale-driven selling. Featured image created with DALL-E, Chart from TradingView Source: newsbtc.com (Read Full Article)

On-chain data shows the Ethereum Exchange Reserve has plunged by more than 1 million ETH over the past month. What does this mean for the asset? Ethereum Exchange Reserve Has Seen A Sharp Decline In a new post on X, analyst Ali Martinez has talked about the latest trend in the Exchange Reserve of Ethereum. The “Exchange Reserve” here refers to an on-chain indicator that keeps track of the total amount of ETH that’s sitting in the wallets associated with centralized exchanges. When the value of this metric goes down, it means the investors are withdrawing a net number of coins from these platforms. Generally, holders take their coins to self-custodial wallets when they plan to hold into the long term, so such a trend can be a bullish sign for the cryptocurrency. Related Reading: Bitcoin Remains Flat—And The SSR Ratio Might Explain Why On the other hand, the indicator’s value observing a decline suggests the inflows into exchanges outweigh the outflows. As one of the main reasons why investors use exchanges is for selling-related purposes, this kind of trend could be bearish for the asset’s price. Now, here is the chart shared by the analyst that shows how the Exchange Reserve for Ethereum has changed during the last few months: As displayed in the above graph, the Ethereum Exchange Reserve has seen a sharp drop recently, implying the investors have withdrawn a large amount of the asset. More specifically, the holder have taken out more than 1 million tokens of the cryptocurrency (worth about $3.8 billion at the current price) from the exchanges over the past month. Alongside this withdrawal spree, the ETH price has enjoyed a bull rally beyond the $3,800 level, indicating that the accumulation wave could be a driving factor behind it. The Exchange Reserve may be to keep an eye on now, as where it heads next could also end up having an effect on the asset. In some other news, the Ethereum Taker Sell Volume has just seen a sharp spike, as CryptoQuant community analyst Maartunn has pointed out in an X post. The Taker Sell Volume here refers to a metric that keeps track of the volume of sell orders (in USD) that are being filed by traders in Ethereum perpetual swaps. From the chart, it’s apparent that this metric has just observed two huge spikes. Across these, Taker Sell Volume has totaled at a whopping $2.68 billion. Related Reading: Bitcoin Open Interest Sets New Record As Price Plunges To $115,000 Whether this reflects a shift in market sentiment or just short-term positioning remains to be seen. ETH Price While altcoins like XRP and Dogecoin have seen pullbacks during the past week, Ethereum has managed to do relatively well as its price is trading around $3,800. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com Source: newsbtc.com (Read Full Article)