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Popular cryptocurrency analyst Lark Davis shared critical levels for Bitcoin and Ethereum. In the continuation of the article, we will also touch on the analysis of on-chain metrics from Glassnode and IntoTheBlock. Let’s start with Bitcoin…

Golden cross in Bitcoin (BTC)

Cryptocoin. com

Davis, whose analysis we share as , tells his subscribers in a new YouTube video that Bitcoin (BTC) is performing a “golden cross”, a technical event seen by many traders as a sign that rallies are approaching:

This happened. This picture. Approved. Bitcoin has a golden cross. This, of course, is the intersection of the 200-day Harekedollary average and the 50-day Harekedollary average. It’s definitely nice to see that.

Bitcoin (BTC) history of golden cross

Davis is also looking at the history of golden cross formations in Bitcoin to see if the event is a reliable bullish indicator. According to the crypto analyst, when BTC last confirmed it in May 2020, it saw a 700% rally. Davis said that in April 2019 he witnessed another golden cross BTC surge 200%, while in September 2015 he started a “non-stop mega bull rally” that drove the price of the top crypto from $300 to $20,000. The popular trader also posted a 22% share of the leading cryptocurrency in the months that followed. He also looks at BTC’s first golden cross formation in February 2012, when it rallied more than 1,000 times. However, Davis notes that a golden cross that occurred in March 2020, two weeks before the end of the pandemic, does not guarantee mudollarska upward momentum:

In TA (technical analysis) it couldn’t be called… (Covid) it was an unexpected macro event that brought the price down so this golden cross failed to make a big rally but it is due to an external event.

Before moving on to Ethereum (ETH), Davis adds that there is another golden cross that he considers short-lived as the price of BTC dropped from around $600 to around $150 in July 2014.

We got a small golden cross hit. This resulted in a short-lived enthusiasm for the market, followed by a 75% drop in Bitcoin price.

Lark Davis says Ethereum ready for a 190% rally

Alongside Bitcoin, Davis says in a different Youtube video that the largest altcoin project by market cap is poised to rise above $10,000 based on fundamental factors. Davis states that one of the reasons Ethereum has more than doubled in price is because its supply on exchanges has fallen.

On the other hand, according to Davis, the supply of the leading smart contract platform on exchanges has been on a strong downward trend over the past year as holders lock in their Ethereum in decentralized finance (DeFi) protocols or use their ETH to buy NFTs:

As the supply mechanics work as is, it’s only a matter of time before the Ethereum supply crisis will raise the price drastically.

IntoTheBlock: Net Ethereum allocated exchange amount sets new record

Davis also cites a tweet from blockchain data platform IntoTheBlock, saying that the net amount of Ethereum coming out of crypto exchanges has recently hit a new record high:

The amount of net Ethereum allocated exchanges set a new record. Over $1.2 billion in Ethereum left the centralized exchanges yesterday. This is a mind-blowing number.

https://twitter. com/intotheblock/status/1438615416608276485

What do on-chain metrics say for Ethereum?

The crypto trader adds that the price of the second-largest crypto rose by double-digit percentage points in about four weeks, when Ethereum, which had previously held over a billion dollars, left the centralized exchanges:

And what’s interesting is, as IntoTheBlock points out, once a billion dollars or more of Ethereum left the centralized exchanges, Ethereum rose 60% in 30 days.

Davis also said that he cites research by blockchain analytics firm Glassnode, which shows that the majority of Ethereum’s supply has not moved in the past 90 days:

87% of Ethereum supply has not moved on-chain for three months or more. 87% of the supply! This is madness


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Michael Lewis

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