Cryptocurrency markets had a bit of a down week as Bitcoin (BTC) and Ether (ETH) saw their 20-day moving averages slip below their respective Bollinger Bands. This has led investors to question whether the markets will regain their momentum as the week progresses. Critical aspects to watch are trading volume and the readings of indicators like the relative strength index (RSI).

BTC and ETH began the week on a positive note, increasing by 2.6% and 2.5% respectively. However, this has not been mirrored in the trading volume which trails both assets' respective 30-day averages. Monday saw an increase in these figures, with a spike of 34% for BTC trading and 35% for ETH.

CoinDesk's Bitcoin Trend Indicator has remained neutral since May 10th and RSI readings for both currencies are in a neutral range. Based on historical trends, BTC is expected to finish the 30-day period 4.1% higher, whilst ETH is expected to finish 2% lower. This is reflective of the market’s reticence to embark on further risk.

Analyzing the supply of stablecoins is another method of gauging the direction of the market. The stablecoin supply ratio (SSR) indicates the amount of buying power left in the markets, with a decrease in this figure a sign of additional buying strength. The SSR has dropped 11% since the 5th of May giving reason to suggest an increase in prices.

On the other hand, a measure of the aggregate supply of stablecoins held on exchanges is down 47% so far this year, despite BTC and ETH trading at 65% and 53% higher respectively. How these figures develop in the coming days will be a good indication of whether greater capital is available to invest across cryptocurrencies, signaling a potential rise in prices.



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