dailyhodl.com
Prominent crypto analytics platform Santiment says one metric is indicating Bitcoin ($BTC) may witness another leg up.
Santiment says that an increase in “bull trap” mentions on social media platforms is indicating a spread of fear, uncertainty and doubt (FUD) for the crypto market.
However, the market intelligence firm says that periods following increased FUD tend to lead to a bump in prices for crypto assets and that could mean Bitcoin is on the verge of heading higher after a rally pause.
“Traders are fearful that crypto markets may be in a bull trap at the moment. But while Bitcoin may have stopped its momentum for the time being, Ethereum and altcoins are blasting off once again. FUD could propel $BTC to $50,000 if it increases.”
Bitcoin is trading for $44,198 at time of writing, up 1.7% in the last 24 hours.
Next, Santiment says Ethereum has more upside potential as the biggest crypto whales holding ($ETH) off of exchanges increase their wallet sizes. According to the analytics firm, non-exchange Ethereum whales hold an all-time high of 54.6 million $ETH worth $128.69 billion.
“Ethereum has scratched its way to $2,349, its highest level since June 2022. The long-term trend of top non-exchange whale wallets getting richer, and top exchange whale wallets having less sell-off power, is a promising combo for a continued climb.”
Ethereum is trading for $2,353 at time of writing, down slightly on the day.
Lastly, Santiment says that peer-to-peer payments network Litecoin could see a bullish trend reversal as wallets holding small amounts of $LTC abruptly decline amid rising FUD.
“Approximately 199,000 wallets that held $LTC 10 days ago, no longer hold any coins. This is the biggest drop in wallets since October 2022. $LTC’s market value vs. $BTC has dropped -55% in five months, but FUD and small wallets dropping could turn this around.”
Litecoin is trading for $78.21 at time of writing, up 5.55% in the last 24 hours.
Generated Image: DALLE3