An analytical overview of the current situation in the crypto market shows signs of potential growth, despite recent price corrections.
Overall Market Sentiment
According to data from the crypto analytics platform Santiment, wallets active in the past 30 days are showing negative trading returns across major cryptocurrencies like Bitcoin, Ethereum, Cardano, and Dogecoin. This negative MVRV (Market Value to Realized Value) ratio typically signals a situation seen as an opportunity by professional traders.
Pressure on Short Positions
Cryptocurrency analyst Ali has noted an interesting shift in trading positions. On January 6, when Bitcoin was trading at $102,000, approximately 56.59% of traders on Binance were holding short positions, causing a 10% price drop. However, now 63.92% of traders have switched to long positions.
Current Market Performance
Despite recent volatility, Santiment reports that Bitcoin is currently trading just under $97,000, while Ethereum has retreated below $3,400. Altcoins like Stellar, Injective, and Cardano continue to show strong performance.
Overall, despite current price fluctuations, the data indicate a potential recovery in the crypto market, with signs of growth in altcoins and an increase in long trading positions.
