Bitcoin and Ethereum traders selling at a loss could signal a bottom, says Santiment
Sentiment tweeted today that both Bitcoin and Ethereum are seeing more traders sell at a loss than at a profit this week. It marks the first occurrence in 2023 and may indicate a bottom formation.
Santiment, a leading provider of on-chain and social media metrics for cryptocurrencies, shared the news on its official Twitter account earlier today. According to their analysis, Bitcoin and Ethereum have seen more traders sell at a loss than at a profit this week.
This development can be a significant sign for investors, as historically when more traders exit their positions at a loss, a bottom is more likely to form. However, this comes amid a bullish period for the cryptocurrency markets, as the prices of Bitcoin and Ethereum have been on an upward trend in recent weeks.
Bitcoin has made a remarkable recovery since the beginning of the year and has broken through a key resistance level of $25,000, while ETH has also experienced a significant increase in value, reaching $1,700.
Nevertheless, the past week has been less favorable for cryptocurrency markets as both leading coins have encountered tight range trading and faced downward pressure from bears, as reported by TronWeekly. By the end of the week, bears had pushed the price down to $22,861.56 for Bitcoin and $1,567.63 for Ethereum.
According to CoinMarketcap data, BTC is currently trading at $23,422.24, showing a slight increase of 0.87% in the last 24 hours, while ETH is trading at $1,638.86, reflecting a 2.21% increase over the same period.
Nevertheless, despite the recent bearish market conditions, many investors remain optimistic about the long-term potential of cryptocurrencies.
Bitcoin traders are showing optimism amid the latest drop in prices
In addition, the recent drop in Bitcoin prices has sparked a buying frenzy among traders, as revealed by a chirping from Ali, a prominent figure in the crypto community.
According to the tweet, almost 68.61% of all accounts on Binance with an open futures $BTC position go long, indicating that traders are optimistic about the future of Bitcoin. Ali also noted that these traders have a track record of accurately predicting price movements, which makes their actions all the more significant.
To put this into perspective, on February 12th, 61.8% of all Binance accounts were long-term. By February 14, 51.2% of them remained long, indicating persistent bullish sentiment. However, it wasn’t until February 6 that only 36.2% of all accounts went long after a big pump, underscoring the unpredictability of the market.
These numbers suggest that traders are confident not only in Bitcoin’s long-term prospects, but also in its ability to bounce back from short-term drops. That’s in line with recent trends, as the cryptocurrency market as a whole has seen a rise in popularity and mainstream adoption in recent months.
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