en.bitcoinsistemi.com
Bitcoin ($BTC) and altcoins are continuing their downward trend. At this point, Bitcoin has fallen below $90,000 for the first time in seven months, a decline that has dragged the entire cryptocurrency market into negative territory for the week.
Analyzing the latest situation in $BTC and altcoins, analysis platform Santiment said that data suggests it may be a good time to take advantage of the decline for some cryptocurrencies and consider buying.
According to Santiment, Bitcoin, Cardano ($ADA), Chainlink ($LINK), Ethereum ($ETH), and $XRP present buying opportunities.
At this point, Santiment said in his post that most major cryptocurrencies have become unprofitable for short-term investors.
According to Santiment, wallets that purchased Cardano, Chainlink, Ethereum, Bitcoin, and $XRP in the last 30 days are experiencing a decline of over 10% in their portfolios, indicating a significant drop in average transaction returns.
Using the MVRV ratio in his analysis of the “buy signal on a dip,” Santiment stated that the relevant cryptocurrencies should be purchased when their returns are extremely negative.
“According to Santiment data;
Cardano – $ADA: -19.7% (Overbought Zone)
Chainlink – $LINK: -16.8% (Overbought Zone)
Ethereum- $ETH: -15.4% (Overbought Zone)
Bitcoin- $BTC: -11.5% (Good Buy Zone)
$XRP: -10.2% (Good Buy Zone) is giving a buy signal.
Santiment recently noted that the MVRV ratio is a good metric for identifying buy zones. While support and resistance levels provide similar context, the MVRV offers a more accurate reference, according to Santiment.
“…In a zero-sum game, buy assets when the average trading returns of your peers are extremely negative. The lower the MVRV ratios, the greater the likelihood of a rapid recovery.”
*This is not investment advice.