crypto analytics firm centimentshared an important indicator that can signal the end of the last rally in the crypto money markets.
The firm states that the P/L ratio for both Bitcoin (BTC) and Ethereum (ETH) is at its highest level in nearly six months, which could lead to a correction.
“Bitcoin is seeing the 2nd largest transaction profit/loss ratio in the last 5 months (2.64x more profit) today. Also, Ethereum has the 2nd highest value in 4 months (3.03 times more profit). These high rates herald corrections.”
Santiment also stated that “buying from the bottom” messages were shared a lot on social media while Bitcoin’s withdrawal continued.
“This may not represent the expected drop as Bitcoin has lost 1.3% in the last 24 hours. However, after quite a bit of FOMO in the last two weeks, the trend to buy bottom has increased. These messages have increased tremendously in the last three weeks.”
While preparing the news Bitcoin (BTC) It has lost about 5% in the last 24 hours and was trading at $44,202.
Santiment also shared his views on how a significant drop in transaction fees could explain Ethereum’s recent price surge.
“Ethereum fees are much more affordable than we’ve seen over the last 8 months. The average gas fee is just $5.81. For comparison, average wages rose to $69.57 on May 11, 2021, and up to $62.85 on November 8, 2021.”
Ethereum (ETH), on the other hand, was trading at $3244, down about 7.5%.
Santiment is finally a peer-to-peer virtual currency. Litecoin (LTC) He shared about The market research company underlined that whales have recently swallowed a large number of altcoins.
“Litecoin may not be on the radar of many traders at the moment but quietly saw the largest daily LTC whale transaction exceeding $100,000 (3,458 transactions) in 2022. Typically this is an indicator of medium-term price direction changes.”
While preparing the news Litecoin (LTC) It has lost 8.08% in the last 24 hours and was trading at $115.97.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.