The downward trend that began last week in Bitcoin, Ethereum and altcoins continues ahead of Fed Chair Jerome Powell’s Jackson Hole speech.
While analysts noted that the tone of Powell’s speech will be important for the course of Bitcoin and altcoins, analyst XWIN Research shared their expectations.
Accordingly, the analyst said that BTC may face a short-term correction, while ETH is showing signs of an uptrend.
CryptoQuant analyst XWIN Research Japan noted that Bitcoin is at risk of a short-term correction, while Ethereum, which has been attracting attention with its recent performance, reportedly continues its upward momentum.
At this point, the analyst pointed out that despite recent price fluctuations, exchange reserves remained at approximately 2.53 million BTC.
According to the analyst, this suggests that investors are not withdrawing BTC. Historically, declining reserves suggest that Bitcoin is leaving exchanges for the long term, reducing selling pressure. This time, reserves are holding steady, suggesting that some of the BTC supply remains liquid and potentially available for sale.
The recent situation with exchange reserves, coupled with BTC’s decline from $123,000 to $113,000, serves as a reminder to be wary of the risk of a short-term correction.
In contrast, ETH volume leaving exchanges has been showing consistent net outflows, with multiple spikes exceeding 300,000 ETH, particularly in late July and mid-August.
Exchange exits typically reflect the interest token being moved to cold storage, staking, or institutional custody, reducing the available supply on the open market, which has a positive impact on the price.
“Data shows ETH’s declining exchange balances highlight increasing institutional demand and long-term positioning.
As a result, BTC is signaling a risk of correction, while ETH is showing a strong bullish trend supported by shrinking liquid supply.
Investors may consider approaching BTC as a dip buying opportunity while favoring ETH for medium-term growth.
*This is not investment advice.