On-chain analytics platform Santiment says the impact of the recent decline in the crypto market on Bitcoin and Ethereum could go either way. Because they see both bullish and bearish signals.

“We see some analysts placing $ 38,000 as strong support for Bitcoin. On the other hand, we also saw a large number of “buy the dip” tweets in the hours after the recession. If you look at the chain and social activities of celebrities, right now it’s like “both good and bad news”.

The source: Sanbase

Santiment said Ethereum is being moved from individual wallet addresses to exchanges, creating potential selling pressure.

“Starting with the network data, yesterday’s dumping was a cleanup of some weak hands, which could be positive for the cops in the long term.”

Source: Sanbase

The company says the real profit / loss (NPL) indicator has fallen to a two-month low, suggesting that BTC holders may be selling at a loss.

“We saw the same thing during the May-June correction on some of BTC’s local lows.”

Source: Sanbase

Ethereum’s average gas fee has risen to its second highest value ever. Santiment said fee spikes are a signal of potential lows as they could be fueled by panic selling and speculation, although the NFT hype could also contribute to ETH gas fees.

Source: Sanbase

According to Santiment, social media mentions of “Buy the Dip” also increased amid the correction. This shows that retail investors are optimistic in the market.

The company said it noticed a surge in Bitcoin’s social sentiment and explained how that could affect the price of the benchmark cryptocurrency.

“Overall, there seems to be some excitement following the recent sell-off that could prove to be a problem in the short term. Just look at the previous surge in the buy the dip discussions, you will see that it usually comes early (like April and May) and is accompanied by another sharp decline before the crowd is right. “

Source: Sanbase

You can see the coin prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

G dragon

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