344

Crypto market correction good or bad for Bitcoin and Ethereum? Cryptocoin. com, we include Santiment’s price drop analysis. Crypto market research platform Santiment says the impact of this week’s crypto market crash on Bitcoin (BTC) and Ether (ETH) could go both ways.

Bitcoin and Ether analysis

The blockchain analytics firm says it has noticed both bullish and bearish signs. The company’s report is as follows:

I saw some TA analisdollarseries identify $38,000 as strong support. On the flip side, I also saw a ‘buy’ tweedollarser in the post-drop saadollarser. Looking at the large companydollar on-chain and social activitydollar series, there seems to be a kind of situation that is both good news and bad news at the moment.

Santiment says that Ethereum is moving from individual addresses to known exchange wallets, indicating potential selling pressure. The firm says the Bitcoin network’s profit/loss (NPL) has dropped to a two-month low and may be selling at a loss to BTC holders.

Starting with the network data, yesterday’s drop left some weak hand tremors, which could be a positive sign for the bulls. We saw similar capitulation drops around several local bottoms for BTC during the May-June correction.

Panic selling is understandable

The average Ethereum fee has reached its second highest point ever. Santiment says fee increases like this are a potential bottom line, as they can result from panic selling and capitulation, but NFT speculation can also contribute to the rising ETH fees.

Social mentions of “buy” and “bottom” rose amid the correction, which is associated with more bullish sentiment among retail investors, according to Santiment. The firm explains that it has seen an increase in average social sentiment towards Bitcoin and how this could affect the price of top crypto. The company says:

Overall, there seems to be some post-dumping excitement on the individual investment side, which could prove to be an issue in the short term. Look at the previous spikes in ‘buy from the bottom’ calls and you’ll notice that they often come early (as in April and May, respectively) and tend to be accompanied by another foot before the crowd finally dries up.


Like it? Share with your friends!

344
Michael Lewis

0 Comments

Your email address will not be published. Required fields are marked *