Santiment, an on-chain crypto analytical platform, highlights that the traders who decide to buy Bitcoin ($BTC) low or sell high should be urged to think beyond just price movement. Santiment has emphasized the importance of observing the performance of competing traders. Just three days ago, Bitcoin ($BTC) achieved its all-time high.
When looking to buy low (or sell high), don't just look at prices… Look at how competing traders have performed. Bitcoin's average returns (based on wallets making at least 1 transfer in the past 30 days) have a -1.9% return, despite BTC's all-time high happening just over 3… pic.twitter.com/vAXZMFCmjt
— Santiment (@santimentfeed) December 20, 2024
Over the past 30 days, the average wallet returns have declined to -1.9%. The crypto market is volatile, where many traders are buying at peaks, fall into rapture. So, the statistical point of view highlighted by Santiment showcases that cautious optimism is necessary in this market.
30-Day MVRV Trends, Insights by Santiment
Since the start of the recent bull rally on 10th October, the 30-day MVRV for Bitcoin ($BTC) has reached its lowest point. Chronologically, $BTC trading averages 0% return which highlights the market’s zero-sum nature. However, Santiment, while giving a piece of advice, says that every percentage point going negative signals a potential buying opportunity.
As many positions of Bitcoin ($BTC) are currently at a loss, traders can think about buying the cryptocurrency. For those applying a DCA (Dollar Cost Averaging) strategy, these insights can become valuable. It mitigates the risk by spreading investments over time.
Bitcoin ($BTC) Market at its Bottom, A Probabilistic Approach
No one can give a guarantee whether Bitcoin has reached its local bottom or not. However, the analysis suggests that the current situation is in favor of strategic accumulation. According to the platform, the traders who had bought at the recent peak, are now may be at the disadvantageous stage. So, it is the opportune moment for the others to capitalize on the coin.
Santiment’s data-driven insights motivate a systematic approach to portfolio building, as the market is in a state of flux. As usual, patience and probability are the two main ingredients favored by historical trends. They offer a beam of hope to traders who want to navigate Bitcoin’s unpredictable market with sound judgment.
