Bitcoin, Ethereum Edge Higher, Dogecoin Slips: Analyst Says Apex Coin Fundamentals 'Still Support Healthy Consolidation'

Major coins traded slightly higher on Wednesday evening, even as the global cryptocurrency market cap fell 0.6% to $963.8 billion at 8:27 p.m. EDT.

See Also: How To Get Free Crypto

Why It Matters: Bitcoin and Ethereum traded marginally in the green on Wednesday evening as the two-day stock market rally came to an end. At the time of writing, U.S. stock futures were seen slightly higher as well.

The ISM Services PMI, an index that gauges the direction of economic trends in the services sectors, fell to 56.7 in September from 56.9 in August but exceeded market estimates.

“The economy is too strong for the Fed to pivot.  The strong start to October is over after both a private payroll report and Service sector data reminded investors how strong some parts of the economy remain,” said Edward Moya, a senior market analyst with OANDA.

On Bitcoin, Moya said, “The strong start to October is over and markets were quickly reminded that Fed pivot calls were premature once again. Traders were quickly reminded that the economy isn’t falling off a cliff and that the Fed might have to remain aggressive with its rate hiking cycle next year.”

“Bitcoin’s fundamentals still support a healthy consolidation here and that should remain the case as long as we don’t see a double dose of robust hiring on Friday and much hotter-than-expected inflation next week.”

Cryptocurrency trader Michaël van de Poppe said that Bitcoin is “into a long zone here after a correction.” He tweeted, “Definitely interested” while referring to a chart of the apex coin.

#Bitcoin is into a long zone here after a correction.

Definitely interested. pic.twitter.com/gbUHJxlOpq

— Michaël van de Poppe (@CryptoMichNL) October 5, 2022

Referring to a chart of the total market capitalization of cryptocurrencies, Justin Bennett, said that the June trend line was reclaimed on Tuesday. Previously, the trader had tweeted that the total market cap needs to break the $923 billion on a daily closing basis.

$TOTAL reclaimed the June trend line yesterday. Bullish reclaim as of now.

Let's see where today closes. $BTC $ETH https://t.co/pILwWd2GZb pic.twitter.com/4sRsJqsbkn

— Justin Bennett (@JustinBennettFX) October 5, 2022

Glassnode said that an assessment of Bitcoin volumes flowing in and out of exchanges by Whales (who whole more than 1,000 BTC) can help them arrive at their cost basis.

“The average price of Whale Deposits/Withdrawals since Jan-2017 is currently around” $15,800, said the on-chain analysis company.

If we assess #Bitcoin volumes flowing in and out of exchanges by Whale sized entities (> 1k $BTC), we can estimate their cost basis (Realized Price).

The average price of Whale Deposits/Withdrawals since Jan-2017 is currently around $15.8k.

Live Chart: https://t.co/FtWE8M9mL6 pic.twitter.com/voS2yOUFWp

— glassnode (@glassnode) October 5, 2022

On the Ethereum side, the amount of new addresses created is around 70,000 per day again, according to Santiment. The market intelligence platform tweeted this is the “highest seen” since early August.

“After quite a bit of uncertainty around the mid-September [merge], the supply of $ETH on exchanges has dropped back to 14.6%,” said Santiment pointing to the normalization of the supply.

#Ethereum's amount of new addresses being created is hovering around 70k per day again, the highest seen since early August. And after quite a bit of uncertainty around the mid-September #merge, the supply of $ETH on exchanges has dropped back to 14.6%. https://t.co/4J78x4YKdb pic.twitter.com/sWK3gVAV2d

— Santiment (@santimentfeed) October 5, 2022

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