Santiment explains why Bitcoin and Ethereum could see a pullback in the price
The recent data from the On-chain analytical firm Santiment suggests that crypto market assets could now look for a bottom after correcting from ‘overbought territory, but still the market looks for signs for confirmation.
If traders sell at loss mean a reversal in BTC and ETH prices?
As per data from the on-chain analytics firm Santiment, traders are currently in bearish mode. The relevant indicator here is the BTC Ratio of Daily On-Chain Transaction Volume in Profit to Loss and the ETH Ratio of Daily On-Chain Transaction Volume in Profit to Loss.
As in the above tweet, Bitcoin and Ethereum’s traders are selling at a loss than a profit, the first such week in 2023. Generally, when the crowd exits their positions this indicates the formation of the bottom at the current level.
BTC Price
Bitcoin (BTC) price appreciated almost 51% from the lows of December 2022. BTC price has taken support with the ascending trend line that extends from the low of $16,496, which acts as a support for the bulls.
The Moving Average Convergence Divergence (MACD) still holds above the zero line. However, with the receding bullish momentum.
ETH price
On the daily chart, the Ethereum (ETH) price trades in a short-term trading range of $1,500 and $1,720. The formation of a bullish piercing pattern on February 13 paused the fall. The upside barricade near $1,720 extends from September 2022, thus making it a strong critical trading zone.
A sustained buying from the Whales and institutions could trigger the strong buying momentum in the digital asset.
