Crypto Markets Analysis: Bitcoin, Ether Price Movement Stalls

The two largest cryptos by market cap are looking to establish new areas of support. Whether short-term holders will sell or stay and become long-term holders remains uncertain.

AccessTimeIconJan 24, 2023 at 8:32 p.m. UTC
Updated Jan 24, 2023 at 10:11 p.m. UTC

Bitcoin and ether’s trading range has begun to narrow as the two largest cryptocurrencies by market capitalization look to establish new areas of support. Following last week’s 8% and 5% gains, BTC and ETH’s price movement has yet to exceed a percentage point over the past four days.

BTC rose 0.4% on Saturday, declined slightly on Sunday and inched upward 1% and .09%, respectively, over the first two days of this week. Ether has traveled similarly during the same period.

Unsurprisingly, both assets have paused after their strong start to 2023. Bitcoin is now trading at levels last seen in August. Ether last traded near its current levels in November.

Bitcoin’s chart implies new support levels forming near $22,900. The volume profile visible range (VPVR) tool, shows increasing levels of activity and price agreement at this mark. Often these are called high-volume nodes, and can indicate where the market sees an asset as fairly priced, at least for the moment.

Other recent high-volume nodes occurred near $17,000 and $19,000. As is common with high volume nodes, prices remained at those levels for extended periods. In short, supply and demand match relatively evenly at these levels. Low-volume nodes imply a lack of price agreement. Prices tend to move rapidly through these price ranges.

Monday’s crypto markets analysis mentioned the extent to which both short- and long-term investors are now in a profitable range on average, which could decrease the desire for some holders to sell.

One area is concerning, however. A report by digital asset firm CoinShares revealed that crypto investment products had $37 million of inflows last week. Of that amount, 68% was sent to short investment products, betting against the price of bitcoin.

Activity within the U.S. was decidedly bearish on this front, with 95% of inflows going into funds looking to profit on declines in bitcoin’s price.

While U.S. investors may think that BTC is overpriced, another plausible explanation is that holders are allocating to short investment funds, to merely hedge against their current long positions.

CoinDesk - Unknown


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Glenn C Williams Jr, CMT is a Crypto Markets Analyst with an initial background in traditional finance. His experience includes research and analysis of individual cryptocurrencies, defi protocols, and crypto-based funds. He owns BTC, ETH, UNI, DOT, MATIC, and AVAX

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.