‘Oversold’ Bitcoin Down to $35K, ETH Drops to $2.5K

Investors have been selling bitcoin for the past week, according to on-chain data. Meanwhile, ether’s daily trading volumes have consistently outpaced BTC’s. Bitcoin, the world’s largest cryptocurrency by market capitalization, was below the 10-hour moving average and the 50-hour as the two indicators are closing in on each other, a bearish signal for market technicians.

BTC’s price slid from $37,833 to as low as $35,816 by Tuesday, a 5.3% tumble based on CoinDesk 20 data, before rising to $35,987 as of press time. “Bitcoin is newly oversold from an intermediate-term perspective,” said technical analyst Katie Stockton in her weekly Fairlead Strategies investor note. The past weekend saw the lowest number of bitcoin transfers from exchanges in 2021. On Sunday, May 30, the flow bottomed out at 33,393 daily transfers, according to data aggregator Glassnode. It’s the first time this year fewer than 35,000 transfers were made from exchanges in a day.

In contrast is the high transfer volume to exchanges in the past month, particularly on May 19, when each transaction that day averaged 2 BTC. That’s triple the daily average per transaction of 0.67 BTC so far in 2021. This Glassnode on-chain information supports Stockton’s oversold theory in the bitcoin market because it appears holders moved BTC to exchanges and sold it, leading to a record-low outflow Sunday.

The second-largest cryptocurrency by market capitalization, ether, was trading around $2,549 as of 21:00 UTC, slipping 3.2% over the prior 24 hours. The asset is below the 10-hour moving average but above the 50-hour, a flat or sideways signal for market technicians.

Market Wrap: ‘Oversold’ Bitcoin Down to $35K, ETH Drops to $2.5K, CoinDesk, Jun 2