Over the last few weeks, the broader cryptocurrency market has come under selling pressure with Bitcoin and some top altcoins heading lower. There’s a lot of uncertainty surrounding the macro developments and the ongoing US debt ceiling negotiations.
On-chain data provider Santiment shows that traders’ enthusiasm for Buy the Dips has waned amid dip opportunities becoming more realistic. It noted:
We are seeing the common paradox of traders buying short-term, small #crypto price dips, but scared to buy the longer-term bigger ones. Mentions of #buythedip or #boughtthedip are dormant. Historically, this kind of #FUD has been good to capitalize on.
On the other hand, it seems that Bitcoin miners have continued to add throughout the month of May. Data from Glassnode shows that post the implosion of the FTX crypto exchange, miners have expanded their balance sheet by 8,200 Bitcoins with their total holdings now moving closer to 80K BTC.
Also, during the month of May, Bitcoin miners raked in a total of 12.9 BTC in mining rewards per block. Only for the fifth time in history, the Bitcoin miner fee revenue has surpassed the subsidies.
Altcoins Flash Underbought Signals
While the Bitcoin price continues to remain under selling pressure, traders’ attention has now shifted to altcoins. Santiment reported:
With markets seeming dull to traders, we’re continuing to see restless addresses emptying their wallets and selling at a loss. Our MVRV model, indicates the vast majority of #altcoins are flashing underbought signals across the sector.
Some of the other popular crypto market traders are also stating that the time to buy altcoins is now. Popular crypto analyst and EightGlobal founder Michael Van De Poppe recently tweeted:
For altcoins, the time to accumulate them has come. One year before the halving -> time to buy those positions. Reached an important level here, which is also approx. 1 year before the halving.
Still a weekly bullish divergence on Others.Dominance chart.
This excludes $BTC and $ETH.
The previous time in the cycle, which was approx. 1 year before the halving of $BTC, altcoins also bottomed. pic.twitter.com/ths42Noyza
— Michaël van de Poppe (@CryptoMichNL) May 25, 2023
Some altcoins like Litecoin (LTC) are already showing strength. Before the current retracement, the LTC price surged above $90 in a bullish momentum driven by the upcoming halving event.