- BTC and ETH coins sold at a loss for the first time in 2023 this week
- Historically this has signaled bottoming in crypto markets.
- Bitcoin and Ethereum prices have both bounced above key price levels.
As Bitcoin and Ethereum look to consolidate above key price levels, on-chain analytics platform Santiment has flagged market activity that suggests the crypto bottom is likely to be forming.
The metric we are looking at is the ratio of profit/loss transactions for the two top cryptocurrencies by market cap.
BTC and ETH traders exited positions at a loss- likely positive for prices?
According to analysts at the firm, price declines over the past week came amid increased selling from traders who were exiting their positions at a loss. The market has historically bottomed when an increased number of crypto holders – the crowd – regularly sell their assets at a loss, Santiment noted.
“Bitcoin and Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form.”
📊 #Bitcoin & #Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form. https://t.co/maEg5sDHM6 pic.twitter.com/0kvPUzbTQm
— Santiment (@santimentfeed) February 26, 2023
Bitcoin traded to prices under $23k over the weekend before bouncing above the crucial level to hit highs of $23,690 across major exchanges. BTC/USD is currently trading around $23,410, just in the green.
Ethereum prices also followed a similar trajectory, first dipping to $1,597 before recovering to $1,647. ETH/USD price has increased 2.3% in the past 24 hour