An exploration of the current state of the cryptocurrency market reveals interesting trends, particularly concerning Bitcoin and Ethereum.
Overview of Current Market State
The cryptocurrency market is witnessing changes, especially with Bitcoin reaching a new price record. However, analysis firm Santiment notes that despite the price increase, trading volumes for Bitcoin are declining, indicating a potential 'bearish divergence.'
Santiment Data on Bitcoin and Ethereum
The analysis of MVRV suggests a 'slight danger zone' for Bitcoin, with a long-term value of 21%, implying potential price pressure. Conversely, Ethereum's quick MVRV values stand at 40% over the last 90 days and 57% annually, raising concerns among analysts.
Investor Behavior in the Market
According to Santiment data, large investors, referred to as 'whales,' have been accumulating Bitcoin since March 22, refraining from selling their assets despite recent price peaks. Simultaneously, smaller investors holding less than 0.1 Bitcoin are also active in purchasing, suggesting a need for market 'cooling'.
The market analysis indicates that while current prices of Bitcoin and Ethereum are favorable, there are troubling signals indicated by changing trading volumes and the behavior of large investors.
