The crypto sector which witnessed carnage in the month of May and June is on the path of recovery and prices of the number one and two cryptocurrency i.e. Bitcoin and Ethereum has made a recovery of 29% and 72% respectively. However experts are warning that the recovery is a bear market rally and the market rally may be short lived.
Cryptocurrencies which are held by top exchanges are surging and the market is reaching a stage which will decide the future price momentum,
Crypto Market Rally Is Short-Term
The crypto sector is in the midst of a rally regardless of the fact that a Fed Rate Hike is expected and the threat of a looming recession is very much possible. The recent visit by Nancy Pelosi to Taiwan has also sent shivers down the spine of markets. However the threat has reduced and the crypto market is still witnessing a market-wide rally today.
Crypto analyst CryptoBirb feels that the rally is not going to sustain and it will be short lived. The rally has all the indication of a bearish rally and only 7% of cryptocurrencies are above the 200-day moving average. 80% of the crypto assets are above the 50-day moving average.
CryptoBirb feels that the market will rally for some time before it will once again go into a correction mode. True at present the crypto assets are on a rising mode and Bitcoin and Ethereum prices rising 3% and 6% to $23,559 and $1676, respectively..
In another analysis by on-chain platform Santiment of Ethereum Top Exchange vs Non-Exchange Holdings data reveals that the Ethereum supply held by top exchanges is rising as traders are offloading considerable holdings to the top exchanges.
As per data obtained from Santiment the top 10 exchange addresses hold more than 7 million Ethereum, for the first time since May 2021. A decline in top ETH exchange holdings will be a bullish signal for the Ethereum price.