Prominent crypto analytics firm Santiment is revealing some potential signs that Bitcoin may be ready for a bounce up in price after weeks of sideways trading.
Santiment shares two metrics on Twitter with its 77,600 followers that suggest Bitcoin sellers are starting to lose steam.
“The amount of daily inflow of Bitcoin to known exchange wallets, as well as the total supply of BTC on exchanges, have experienced a sharp 50-day drop, which may point to diminishing sell-side pressure.”
Additionally, Santiment points out that Bitcoin’s funding rate on the crypto exchange BitMEX has veered positive as traders remain indecisive as to whether Bitcoin’s price can recover. The analytics firm indicates that this pattern of negativity and excess shorting has usually been matched by quick price bounces every time it sinks too low.
According to Santiment’s chart, a positive BitMEX funding rate tends to align with Bitcoin rallies.
The analytics firm is also keeping an eye on Ethereum (ETH), noting that its fees – which are at seven-month lows – don’t seem to have an effect on Ethereum’s rise in utility.
“Ethereum’s average fees are down to $2.19, which is the lowest the #2 market cap asset has been since December, 2020. This is a promising sign that ETH’s utility can rise with little impact of fees standing in the way of healthy circulation.”
At the time of writing, Bitcoin is trading at $33,062, while Ethereum is sitting just above $2,000.
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