Analytics firm Santiment weighs the state of Bitcoin and Ethereum as investors wait for the crypto market to take its next move after a modest rally in recent days.

Santiment highlights two metrics that suggest Ethereum might be in a good position to make long-term purchases.

The first is the Market Value Real Value Index (MVRV), which divides the market capitalization of a coin by its actual capitalization to show the average profit / loss of all coins in circulation at current prices. According to Santiment, the 30-day MVRV hovers with an attractive risk-return ratio (R / R).

“Historically, a mean MVRV (30d) of -16.9% generally implies a less risky buying opportunity than usual.”

Source: Mood

Santiment also highlights the social sentiment of Ethereum, which they say sends a favorable signal to attract buyers.

“The sentiment of the crowd on Ethereum is currently at all-time lows, a potentially huge opportunity to buy against the masses.”

Source: Santiment

Regarding Bitcoin, the platform says the leading cryptocurrency continues to show strong signs of on-chain principles.

“Bitcoin is recovering and active addresses are up slightly after a massive 50% decline from the all-time high in April. Bitcoin’s active address model shows that despite the price drop, the active address is not going down much.”

Source: Mood / Twitter

The cryptanalysis company is also researching the average return of Bitcoin traders and believes it has fallen to levels not seen since the coronavirus crash in March 2020.

“Bitcoin is still growing significantly compared to 2020 levels, but FOMO (fear of missing out), buying tops and selling lows, mean trader returns are at a 14-month low. Historically, this is a good place to go long. “

Source: Mood / Twitter

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According to Dailyhodl

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