Top Crypto Analytics Firm Says Bitcoin (BTC) Flashing Signs of Notable Bounce As Trader Sentiment Turns Sour
Crypto market-intelligence platform Santiment says that a gloomy reaction to Bitcoin (BTC) falling below $30,000 to start the week is necessary for a rebound.
Santiment says that the purging of traders and investors who exit the market at the first sign of plummeting prices usually leads to a “truly notable bounce” afterward.
“With Bitcoin now having retraced all the way down to $33,900, trader sentiment has fallen to six week lows. We typically prefer to see capitulation signs like this, as weak hands leaving the space is generally what is needed for a truly notable bounce.”
Bitcoin is trading for $31,313 at time of writing.
In the case of Ethereum (ETH), the cryptocurrency market-intelligence platform says that a sign of a bottom is close came on Friday when the ratio of profitable to losing transactions plunged to a 42-month low.
“On the Ethereum network, there were about 3.4 times as many transactions taken while coins were at a loss compared to in profit, on Friday. This was the highest day, in terms of ETH’s capitulation trading ratio since Nov 18, 2018, or 3.5 years ago.”
Ethereum is trading for $2,319 at time of writing, down nearly 7% in the past day.
Santiment also looks at Chainlink (LINK), a decentralized network that provides off-chain data to the smart contracts of various blockchains.
According to the crypto market intelligence platform, the native token of the blockchain oracle is witnessing whale accumulation amid a fall in price to levels last recorded in September of 2020.
“For the first time in 18 months, Chainlink has dipped below $10 as crypto markets finish out another week of price corrections. That said, key stakeholder addresses appear to be staying in accumulation mode for the past 4-6 weeks.”
Chainlink is trading for $8.36 at time of writing.
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