Bitcoin (BTC) Is Flashing ‘Yellow Flag’ As Prices Move Sideways, Warns Crypto Analytics Firm Santiment
Crypto analytics firm Santiment says recent Bitcoin (BTC) data contains mixed signals that could be cause for concern on the price charts.
According to a new post, the market intelligence company suggests that the uptick in wallets which hold between 100 and 10,000 Bitcoin is a bullish indicator from wealthy investors.
“The amount of Bitcoin addresses holding between 100 to 10,000 BTC ($2.3 million to $233 million) has reached its largest quantity since June 11th.
We look to this tier of large addresses as confidence from large active holders, and this increase is encouraging.”
Santiment next offers a counterbalance, noting that recent increased profit-taking by Bitcoin holders could prompt a price drop. The firm also notes that Ethereum (ETH) sales volume has in contrast returned to moderate levels.
“Bitcoin is staying relatively flat at $23,400, but its profit-versus-loss transaction ratio is creeping up to ‘yellow flag’ levels.
Meanwhile, Ethereum is finally outputting a much safer ratio this week after some very heavy profit taking in early August.”
At time of writing, Bitcoin is off by less than a percent and trading for $23,173.
Santiment also points to chatter on social media leading up to Ethereum’s mid-September transition to a proof-of-stake mechanism as a historical marker of short-term price peaks.
“The ETH Merge discussions have been understandably heating up, and August 11th was when this topic really spiked after a date was announced.
Throughout the past year, the relative largest spikes in this topic have marked approximate local ETH price tops.”
The analytics firm takes a deeper dive into Ethereum’s social dominance in its weekly newsletter as it warns of a possible blow-off top.
“It almost seems like everyone and anyone is in this very obvious speculative play.
As we draw closer, it’s very likely we see yet another spike in ‘merge’ social dominance and similar price action (alts dropping, ETH rising) as late comers pile in whatever they have to ride it, which eventually increase the chance of things leading to a blow-off top.”
Ethereum is up a fraction on the day and is changing hands for $1,842.
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Author: Daily Hodl Staff
