Rise of Bitcoin and Ethereum: simple reprieve or start of recovery?

glass knot finds a positive from Bitcoin price and D’Ethereum to the rise of the rate over there fed. The question now was whether it was a sustainable recovery or of a temporary burst.

The positive trend in the cryptocurrency markets does not pass into sight after months of tensions and strong fears of contagion. In his latest report, glass knot thus signals an increase of 5.7% for Bitcoin and 7.6% for Ethereum over one week.

“To many expected, the recent positive price action of bitcoin and Etheruem brings a long-awaited slowdown to the bulls, which have gone through nearly nine months of persistent downtrend,” the analysts note.

Dull activity on the Bitcoin network

Nevertheless, it is still good too early to draw a trajectory for the courses over these weeks, or even the months to come. Two paths are possible: reprieve in the bear market ou the beginning of a bullish impulse supported.

To characterize an “impulse” of this nature, different string indicators taken into account in principle. Among these, one increase in use and theemergence of a new demand.

With the exception of a few more reported photos of activity during major sellout events, current network activity suggests that there is still little influx of new demand,” Glassnode observes, however.

The finding is similar for the number of transactions and block space demand. This manifests assets on the Bitcoin network as the “only stable base of higher conviction traders and investors”.

Bitcoin still dominated by HODLers

On the side of transaction fees, the data tells “a similar story. This indicator should be watched, even if at this stage it does not signal a real recovery in activity nor does it bode well for a sustained rise in the price.

The Bitcoin network has remained dominated by HODLers, and so far there has been no noticeable return of new demand, viewed from an on-chain activity perspective,” Glassnode said.

The trend is broadly quite comparable on Ethereum. In fact, the network congestion is reduced despite a sharp rise in the price of ETH in recent weeks.

Low Fees on Ethereum: Uncertainty Remains

Thus, the transaction fees remain low with gas prices at their lowest level in recent years. Conclusion, for both Ethereum and Bitcoin, “on-chain transactional demand remains lackluster at best.”

And while the recent rally is welcome, it hasn’t transferred to a “tracking rendered in observable demand activity.” The next few weeks will determine the ability of “these uptrends to sustain and improve. »

It is then that a major question can be decided: is it a simple reprieve from the bear market? [bear market] or more constructive structural change. Case to follow for investors and the crypto industry in search of positive signals.

Follow Coins.fr on TwitterLinkedIn, Facebook we Telegram so as not to miss anything.

The Crypto NewsletterReceive a weekly news summary

Leave a Comment