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Report Highlights Possible Signs Of Strength In The Crypto Market

Published 22/06/2023, 13:53
© Reuters Report Highlights Possible Signs Of Strength In The Crypto Market
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  • Data from Santiment indicates more bullish signs after the recent relief in the crypto market.
  • The crypto market is starting to catch up with the equities market after being outperformed over the past few weeks.
  • The average trading returns for mid-term traders show that traders are closer to opportunity zones than danger zones.

The cryptocurrency market has taken a sigh of relief following a recovery from the 2023 bearish sentiment. The blockchain intelligence firm, Santiment, revealed in their latest report that their data pointed out even more bullish signals, which suggest this recovery may continue.

The crypto market started 2023 strong but faced a 19% decline from April to June.In addition to this, Binance and Coinbase (NASDAQ:COIN) were sued by the SEC, causing concerns. However, the market recently saw a surge in its market cap due to new entrants.

Blackrock’s rumored shift towards crypto and their announcement of a full-blown ETF also garnered a lot of attention. Following this, other fund managers followed suit, totaling at least 10 announcements. This has done wonders for the crypto market as the global crypto market cap rose by 3.98% in just the past 24 hours alone, according to CoinMarketCap.

Data from Santiment suggested that the bullish momentum in the crypto market will persist for the next few weeks, as it indicated even more bullish signals to take note of. Firstly, Santiment’s data indicated that the crypto market was catching up to the equities market, which had been the better performer over the past few weeks.

Meanwhile, the average trading returns for mid-term traders show that traders are closer to opportunity zones than danger zones. Despite this, Santiment noted that many traders are still well under water for many assets.

MVRV opportunity and danger zone divergence (Source: Santiment)

Santiment also indicated that the sudden surge in crypto prices surprised many traders who were in the process of taking profits. This suggests that there is still potential for further gains in the market.

Despite the excitement surrounding the ETF craze, Santiment highlighted the fact that it is still important to remain vigilant regarding the ongoing Binance and Coinbase lawsuits. The intelligence firm reminded traders that these legal matters have not vanished due to the ETF developments.

Santiment concluded their report with some advice to traders. According to the report, the crypto crowd becoming excessively euphoric could indicate a temporary peak in the market.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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