What Bitcoin and Ethereum’s rising adoption signifies
- Honda has announced that it will now accept Bitcoin and Ethereum payments.
- BTC looked mostly bullish, but ETH investors might have a few concerns.
The crypto market recently gained some momentum as the king of cryptos, Bitcoin [BTC], witnessed a price rise. Not to be left behind, Ethereum [ETH], too, boasted of a few developments, which could have an additional positive impact on the overall market.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Bitcoin is showing bullish signals
BTC has finally managed to breach the $27,000 mark, which it earlier failed to sustain. According to CoinMarketCap, BTC was up by more than 4.5% over the last seven days. At the time of writing, BTC was trading at $27,557.89 with a market capitalization of over $537 billion.
However, the good news was that, as per the latest data, things could get even better. Seth, a popular crypto influencer on X (formerly Twitter), revealed that Bitcoin just closed above its 20-day Moving Average (20MA) for the month.
This was a bullish signal, suggesting that the king cryptos’ price might pump further in the days to come. Moreover, the tweet also talked about BTC’s Relative Strength Index (RSI), which could also turn bullish soon, provided other metrics support BTC’s growth.
?? Bitcoin just closed above its 20-day moving average (20MA) for the month, hinting at a potential bullish trend ahead!
?? The RSI is also flirting with crossing into the bullish zone, adding fuel to the excitement.
— Seth (@seth_fin) October 3, 2023
Which way is the market headed?
A deeper look at Bitcoin’s ecosystem pointed out quite a few other bullish metrics as well. For example, BTC’s Exchange Reserve was declining as of press time, meaning that the coin was not under selling pressure.
This fact was further proven by its Exchange Netflow, which revealed that BTC’s net deposits on exchanges were low compared to the 7-day average.
Moreover, long-term holders’ movements in the last seven days were also lower than average. This clearly suggested that the long-term holders had high hopes for BTC, which is why they were willing to hold their assets.
Like the aforementioned metrics, BTC’s derivatives market metrics also remained bullish. Notably, CryptoQuant’s data revealed that BTC’s Funding Rate was green at the time of writing, which meant that derivatives investors were buying the coin at its higher price.
Buying sentiment in the derivatives market was dominant as well, as evident from BTC green Taker Buy/Sell Ratio. Interestingly, Bitcoin’s Open Interest registered an increase along with its price.
Typically, a rise in this metric means that the ongoing price trend will continue.
Bitcoin, Ethereum adoption rises
While BTC’s metrics looked bullish, an interesting development happened that suggested that crypto adoption was rising on a global scale. Honda, one of the world’s leading car manufacturers, opened its doors to crypto payments.
To be precise, it announced that it will now accept payments in BTC and ETH.
? Breaking News ?
— Seth (@seth_fin) October 2, 2023
How did ETH behave?
As per CoinMarketCap, Ethereum’s weekly chart was also in the green as its value spiked by more than 2% over the past seven days. At the time of writing, Ethereum was trading at $1,649.12 with a market capitalization of over $198 billion.
The crypto market’s sentiment around ETH also improved last week. This was evident from LunarCrush’s data, which revealed that bearish sentiment around ETH dropped by 40% last week, while bullish sentiment surged by over 20%.
Not only that, its AltRank also improved, which was a development in the buyers’ favor.
Is your portfolio green? Check out the ETH Profit Calculator
Though the metrics were bullish, the same was not true for ETH’s market indicators. For instance, both Ethereum’s Relative Strength Index (RSI) and Money Flow Index (MFI) went down and were hovering near their respective neutral marks.
ETH’s Chaikin Money Flow also looked bearish, another metric which signaled that the token’s price could fall in the coming days.