Santiment tweeted today that both Bitcoin and Ethereum are experiencing more traders selling at a loss than at a profit this week. It marks the first occurrence in 2023 and could indicate a bottom formation.
Santiment, a leading provider of on-chain and social media metrics for cryptocurrencies, shared the news on their official Twitter account earlier today. According to their analysis, Bitcoin and Ethereum have seen more traders selling at a loss than at a profit in the current week.
This development could be a significant sign for investors, as historically when more traders exit their positions at a loss, and it is more likely that a bottom will form. However, this comes amid a bullish period for the cryptocurrency markets, as prices for Bitcoin and Ethereum have been on a rising trend in recent weeks.
Bitcoin has made a noteworthy recovery since the beginning of the year and has broken through a key resistance level at $25,000, while ETH has also experienced a significant increase in value, reaching $1,700.
Nevertheless, the past week has been less favorable for the 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’s data, BTC is presently trading at $23,422.24, exhibiting a slight increase of 0.87% in the last 24 hours, while ETH is trading at $1,638.86, reflecting a 2.21% rise during the same period.
Nonetheless, despite the recent bearish market conditions, many investors remain optimistic about the long-term potential of cryptocurrencies.
Bitcoin Traders Show Optimism Amidst Recent Dip in Prices
Additionally, the recent dip in Bitcoin prices has sparked a buying frenzy among traders, as revealed by a tweet from Ali, a prominent figure in the crypto community.
According to the tweet, nearly 68.61% of all accounts on Binance with an open futures $BTC position are going 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, making their actions all the more significant.
To put this into perspective, on February 12th, 61.8% of all Binance accounts were going long. By February 14th, 51.2% of them remained long, indicating a sustained bullish sentiment. However, it wasn’t until February 6th that only 36.2% of all accounts were going long after a big pump, highlighting the unpredictability of the market.
These figures suggest that traders are confident not only in Bitcoin’s long-term prospects but also in its ability to bounce back from short-term dips. It is in line with recent trends, as the cryptocurrency market as a whole has seen a surge in popularity and mainstream adoption in recent months.
Related Reading | Shiba Inu’s Project Lead Came Up With This Ahead Of Shibarium