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.”

Source: Santiment/Twitter

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.”

Source: Santiment/Twitter

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.”

Source: Santiment/Twitter

Chainlink is trading for $8.36 at time of writing.

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