Crypto analysis platform Santiment offers a cautionary note as the new year approaches. According to Santiment’s data, the supply in profit for the cryptocurrency Bitcoin (BTC) is currently at 89%. This indicates a level that requires caution among investors. Historical trends show that more significant price increases for BTC are more likely when this metric is in the 40-70% range.
BTC’s Supply in Profit
As the crypto community eagerly awaits the new year, Santiment’s latest views on Bitcoin’s supply dynamics provide a noteworthy signal. The cryptocurrency BTC’s supply in profit ratio currently being at 89% suggests a cautious approach is advisable.
Santiment’s historical analysis indicates that the cryptocurrency Bitcoin tends to experience more significant price increases when this particular metric is in the 40-70% range. Investors should be mindful of this high level as they navigate the crypto world in the coming weeks.
Bitcoin‘s critical resistance level is currently the talk of the town at $44,600. Comments suggest that surpassing this level is necessary for the start of a bull run. However, Santiment’s view has taken on an alarming tone. Yet, they also have significant evaluations for two other altcoins, painting a promising picture.
Opportunity Zone: MATIC and LTC Shine
While Bitcoin raises warning flags, Santiment’s data presents a more comfortable scenario for two other cryptocurrencies: Polygon (MATIC) and the altcoin Litecoin (LTC). These altcoins find themselves in an opportunity zone, indicating a favorable environment for potential gains.
The characteristics of this opportunity zone are not detailed, but investors may find exploring the dynamics of MATIC and LTC worthwhile as they offer potentially promising opportunities in the crypto market.
Santiment’s insights serve as valuable guides that remind crypto enthusiasts and investors of the nuanced landscape in the digital asset space. As we enter the new year, adopting a strategic and informed approach becomes increasingly important to navigate the complexities of the ever-evolving crypto market and seize opportunities.
