In recent weeks, the broader cryptocurrency market has come under selling pressure with Bitcoin and some top altcoins moving lower. There is a lot of uncertainty about macroeconomic developments and the ongoing negotiations on the US debt ceiling.
On-chain data provider Santiment shows that traders’ enthusiasm for Buy the Dips has waned while dip opportunities are becoming more realistic. It noted:
We see the common paradox of traders buying small in the short term #crypto price drops, but afraid to buy the bigger one in the longer term. Mentions of #buydip or #boughtdip are asleep. Historically, this kind #FUD good to play on.
On the other hand, it seems that Bitcoin miners have continued to add throughout the month of May. Data from Glassnode shows that after the implosion of the FTX crypto exchange, miners increased their balance by 8,200 Bitcoins, with their total holdings now closer to 80,000 BTC.
Also, during the month of May, Bitcoin miners reaped a total of 12.9 BTC in mining rewards per block. For only the fifth time in history, Bitcoin miner fee revenue has surpassed subsidies.
Thanks to: Glassnode
Altcoins Flash Underbought Signals
While the price of Bitcoin continues to be under selling pressure, traders’ attention has now shifted to altcoins. Sanitation reported:
With markets seeming dull to traders, we continue to see restless addresses empty their wallets and sell at a loss. Our MVVR model, indicates the vast majority #altcoins are flashing underbought signals across the industry.
Some of the other popular crypto market traders also state that now is the time to buy altcoins. Popular crypto analyst and founder of EightGlobal, Michael Van De Poppe, recently tweeted:
For altcoins, it’s time to collect them. One year before the halving -> time to buy those positions. Reached an important level here, which is also about 1 year before the halving.
Still a weekly bullish divergence on the Others.Dominance chart.
— Michael 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 bullish momentum driven by the upcoming halving event.
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is constantly in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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