While the cryptocurrency market is experiencing excited days with bitcoin beating a new record of all time and Ethereum is approaching, the Santiment Analysis Society has closely examined the current state of the market.
In a video of their publication, comply analysts evaluated the feeling of the market and possible future movements using formal and social metrics.
According to the analysis of Santime, despite the increase in prices, the Bitcoin trading volume has decreased since its Pak in July. This is interpreted as a sign of a “down divergence” on the market. Likewise, daily active addresses and network growth are also decreasing, which raises questions about the sustainability of prices.
Meanwhile, the analysis of Santime of MVRV (average value ratio) indicates a “slight danger zone” for bitcoin. The long -term MVRV of 21% suggests that SAT prices can remain unique pressure. The site is different for Ethereum, where its 90 -day MVRV is 40% and its MVRV at 365 days is 57%. Analysts warn that these high values could lead to a drop in FIRTER prices.
Santiment data also reveals the behavior of management groups of investor on the market. Large investors, known as “what”, who hold between 10 and 10,000 bitcoin, have accumulated the control record. This is considered a positive signal, because it demonstrates it when the same in the market and the long -term perspective. How, individual investors with less than 0.1 Bitcoin also buy. Analysts note that simultaneous purchases by large and small investors generally indicate the need for market “cooling”.
The increase in rhetoric “Buy on the Dip” on social networks after the recent drop in prices is generally considered as a contrary indicator, suggesting a little optimism on the market. Analysts that interstate that all these essentials represent the euphoria of the market and that investors should be cautious.
* These are not impact advice.
