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Bitcoin Warning Signs

Bitcoin Warning Signs! | BTC, ETH, XRP, BNB, IOT Analysis

27 Apr, 2021
Martin Petkov

Hello and welcome, everyone. It's Martin here with CryptoGains. Today, the focus is on on-chain analysis for Bitcoin with data compiled from Glassnode.

We're beginning by observing that last week, Mean Transaction Fees reached a new all-time high, which exceeded the top that was reached during the previous bull run in Bitcoin, which ended at the beginning of 2018. Now, I don't want to be extremely bearish by observing the similarity between the trends in the Average Transaction Fees, but there are quite substantial similarities between the 2017 peak and the current peak that we're observing in Bitcoin. In addition to that, what we're observing is that the Total Transfer Volume (Change Adjusted) also peaked and has been sustaining levels above $10 billion for over 120 days. Actually, this time, it's 136 days. Another similarity between the uptrend in the 2017-2018 peak and the current volume.

Consequently, because, related to these very high transaction fees that we indicated, the Number of Active Addresses has dropped over the past week, which is not a reason to be alarmed by itself, but it's just something to be aware of. However, what is more optimistic to note is that altcoins tend to be dormant, as can be seen by the Average Spent Output Lifespan, which is decreasing, which is suggesting that, contrary to what was happening between October and January, when the altcoins were getting spent, and the long-term holders were selling Bitcoin, now it seems that they're accumulating. So, this gives us some confidence that actually the uptrend is still intact. And, in addition to that, miners' Net Positions are changing, and through being net sellers or distributing the Bitcoins that they're mining, they're now accumulating, probably indicating that they're considering these prices are good opportunities for long-term growth. Let's now move to the technical chart and see how we can trade some of these insights.

Beginning with Bitcoin versus Tether, $54,400 is a critical level. Above that level, I'm recommending to buy bitcoin, with targets at $55,000, $55,500 and $56,500, which are the nearest reasonable Take Profit targets. Conversely, below $54,400, we can sell Bitcoin, with targets at $53,400 and $52,400.

Now we're moving to Ethereum. Above $2540, Ethereum presents attractive buying opportunities, with targets at $2575 and $2620. Conversely, below that pivotal point at $2540, it would be more reasonable to sell Ethereum, with targets at $2490 and $2430, which, as we can see, are the reasonable support levels in Ethereum.

Now let's take a look at Ripple, which is one of the best performers of the last 24 hours. As I said, Ripple is one of the best performers from the past 24 hours. It reached high levels, to as high as $1.46. Now it's retracing some of these gains, but the pivot point is $1.39. Above that level, buying Ripple, with targets at $1.45 and then $1.50. Conversely, below $1.39, we could see good opportunities to sell Ripple, with targets at $1.35 and $1.27.

And now, let's take a look at Binance Coin. For Binance Coin, I'm waiting to break above $542 before initiating long positions, with targets at $550, which is a long-term resistance area and a very good target for a long position. Conversely, below $542, selling Binance Coin, with targets at $538 and $531, would be a reasonable idea for a trade.

And, finally, let's take a look at IOTA. For IOTA, the pivot point is $2.11. Above that level, buying IOTA, with targets at $2.145 and $2.195. Conversely, below that level, we could be selling IOTA, with targets at $2.07 and $2.03. So, here are 5 trading ideas for you today, coupled with some insightful on-chain analysis.

And as always, remember to join our Crypto Signals Made Easy channel for lots of insightful articles and trading ideas. Keep learning with the video education section in the CryptoGains marketing site subsection. Thanks for joining me today. Trade wisely, and I'll see you soon.


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