Bitcoin and Ethereum show signs of bullish divergence for the rally

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After a strong rally in the second half of June 2023, the price of Bitcoin (BTC) has been consolidating around the $30,500 level for some time. As we can see in the image below, BTC consolidated throughout July around these levels showing signs of compression. This shows that there is a possibility of an imminent breakout.

Courtesy: Trading View

The on-chain data further confirms that the breakout could be on the upside going forward. Crypto analytics firm Santiment highlights the realized net profit loss against price for BTC and ETH.

He notes that after three weeks of fluctuating prices, both Bitcoin and Ethereum are taking small losses from their previous values. Average traders move their assets at small losses. When the Net Realized Profit/Loss (NRPL) indicator is negative against the price, there is a higher chance of a positive price movement in the future.

Courtesy: Santiment

Other good signs for Bitcoin have been the growing accumulation of whales over the past three weeks as BTC enters price consolidation. On the other hand, foreign exchange reserves have also decreased.

Just like Bitcoin, Ethereum shows strength

Last week, Ethereum (ETH) saw more price volatility, with its price dipping below $1,850. However, it has since recovered and moved closer to the $1,900 level.

It should be noted that Ethereum has strong support in the $1,800-$1,870 price range. Within this range, a total of 3.4 million addresses purchased 11.2 million ETH.

On the other hand, there is an important resistance level between $2,040 and $2,100. In this range, 1 million addresses had previously bought 27 million ETH, says renowned crypto analyst Ali Martinez.

Currently, there is a close battle between ETH bulls and bears, but technical indicators show a possibility of a breakout at $2,050. Any further movement in BTC and ETH prices could provide a major boost to the broader crypto market.

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