The crypto analytics firm Santiment is warning euphoric Bitcoin investors about the top cryptocurrency’s near-term trajectory.
In a new market report, the firm says it’s firmly bearish on Bitcoin after a peak in sentiment and recent rally above the $19,000 level.
Santiment says a reversal is likely, given the fact that sentiment among BTC traders is “still quite positive currently, and we consider this to be confidently bearish territory based on history.”
After the recent altcoin market breakout, Santiment is now slightly bearish on both XRP and Ethereum. The firm says traders should expect XRP to reach local top in the near-term after a rise in positive sentiment.
“Generally, these major sentiment spikes on the positive side lead to an eventual local top. And there’s a high likelihood that this could come to fruition in the near future, in order to neutralize the euphoria happening around the #3 crypto asset by market cap.”
Santiment says Ethereum’s network address activity isn’t accelerating in unison with the price of ETH, giving the firm reason to advise “serious caution” after the coin’s rise above $600.
The firm recommends traders pay attention to the ETH supply on crypto exchanges – the lower, the better.
As for Chainlink (LINK), Santiment says it’s looking for a larger spike in positive sentiment to fuel a fresh rally. Until then, it is neutral on the crypto asset.
“The mood surrounding Chainlink on Twitter has turned positive over the past couple weeks, but not by an overwhelming margin. There are some very wild swings in euphoria that lead to local tops for the ETH-based project that garners so much social media attention.”
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