BTC and ETH sell-off strengthened historically positive metric: Santiment
BTC and ETH coins sold at a loss for the first time in 2023 this week
Historically this has signaled bottoming in crypto markets.
Bitcoin and Ethereum prices have both bounced above key price levels.
As Bitcoin and Ethereum look to consolidate above key price levels, on-chain analytics platform Santiment has flagged market activity that suggests the crypto bottom is likely to be forming.
The metric we are looking at is the ratio of profit/loss transactions for the two top cryptocurrencies by market cap.
BTC and ETH traders exited positions at a loss- likely positive for prices?
According to analysts at the firm, price declines over the past week came amid increased selling from traders who were exiting their positions at a loss. The market has historically bottomed when an increased number of crypto holders – the crowd – regularly sell their assets at a loss, Santiment noted.
“Bitcoin and Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form.”
📊 #Bitcoin & #Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form. https://t.co/maEg5sDHM6 pic.twitter.com/0kvPUzbTQm
— Santiment (@santimentfeed) February 26, 2023
Bitcoin traded to prices under $23k over the weekend before bouncing above the crucial level to hit highs of $23,690 across major exchanges. BTC/USD is currently trading around $23,410, just in the green.
Ethereum prices also followed a similar trajectory, first dipping to $1,597 before recovering to $1,647. ETH/USD price has increased 2.3% in the past 24 hour
The post BTC and ETH sell-off strengthened historically positive metric: Santiment appeared first on CoinJournal.
