In the last few weeks, the focus of investors and market participants focused primarily on the Altcoins. While Bitcoin (BTC) and Ethereum (ETH) were less in the spotlight, back are the two top dogs again. Due to the extremely low volatility of the expectations of a larger movement are high. Let us, therefore, together, on the Charts, Fundamental, as well as On-Chain data, are looking to understand where the journey can go.
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Bitcoin volatility: the BTC as a Stablecoin?
The volatility corresponds to a measure that indicates how much the price varies over a period of time. Here, the term is often with the “risk” the same. Now if we look at the following Chart to the Bitcoin volatility, we see that such low levels were already reached for a very long time.
Yesterday also celebrated the movement of the Bitcoin exchange rate in comparison to the “last times,” not much of a rash. Nevertheless, we should look at the price movements are always in the Relation. So, we quickly see that we had no explosives , had in the past seven days but a continuous growth. In absolute terms, the Bitcoin price rose by 9,100$ 16. July to a value of 9,500$ on Thursday.
If we are to Believe the theory of the momentum (“trend is your friend”), then we can expect further growth. Also, the low volatility will increase and this immensere rate trigger movements.
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Ethereum: what is ETH and Co?
We devote ourselves to in the second part of the analysis, however, Ethereum. Despite the enthusiasm of many investors for Decentralized Finance Ethereum could benefit in the past few weeks – until yesterday – hardly any of it. Some Ether is referred to as a boring.
We speak again in a little more detail about Ethereum, DeFi and Gas fees. The following graphic analysis company Glassnode shows the course of the Gas-fees in USD, as well as the total number of Gas.
It is clear that the last few weeks have revealed the weak points of Ethereum is open. Because with the increase in daily-used Gas a lot of talk not only about the high cost, but also on the scalability of Ethereum. Fortunately, the announcement for the Launch of the final Testnets of Ethereum 2.0 was yesterday.
EIP 1559: Great discussions in the Community
While there is in the case of Bitcoin, called the Bitcoin Improvement Proposals (BIPs), i.e. the counterpart in the case of Ethereum for this EIP. Currently, there are a lot of discussions at the EIP in 1559. At the core, this is about to change the transaction model. The idea behind this is as follows:
Currently, the transaction be designed to fees after an auction mechanism. Simply put: If you pay as a user more than other users, then your transaction with a higher priority/probability in the Block because the Miner can maximize your profit.
In the new proposal, the model should be changed. The new concept is instead of an auction mechanism is a model, which is based on a base fee (engl. base fee) and a kind of extra drinking money (engl. tip model) is. For each transaction a fee will be charged. This, in turn, is geburned, so that with each transaction, the ETH Supply drops. Anyone who wants to ensure that his transaction arrives quickly, can send an additional Tip.
While the fundamentals look so good, the question is whether this is also in ETH price reflect?
Ethereum HODL Waves
For this purpose, we look at, again, a graph of the Glassnode. In this, the Ethereum HODL Waves. Here, too, it is the Pedant, which we refer to in BTC as Bitcoin Hodl Waves.
The graphic reads as follows: Around
If we look at the hodl waves of Ethereum we can see that 59.51% of the supply has been hodled for 6 months or more, where even 39.73% has been hodled for more than 1 year.
In addition to the Fundamentals of see as well as the On-Chain activities. The price itself, we see a Phase of accumulation, which lasts for about 600 days.
Accordingly, it is particularly exciting to where the journey will lead. In view of the fact that many users were already able to make profits with DeFi, is it realistic that this flow, in turn, in ETH or BTC.
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