情绪指标

In the turbulent cryptocurrency market, how to identify the market bottom? Santiment provides key signals

In the ongoing turbulence of the cryptocurrency market, on-chain analysis company Santiment has released a highly valuable guide for identifying market bottoms. This guide offers a glimmer of hope for investors who are anxious amid price fluctuations.

Santiment points out that smart money has begun to focus on three key signals: social media sentiment, whale movements, and changes in coin age. These indicators often foreshadow the arrival of market turning points.

First, social media sentiment, the thermometer of the market. When the prices of mainstream coins like Bitcoin slightly decline, the entire network often cries out in despair. However, Santiment's research finds that the market often goes against the expectations of the majority. When social media is flooded with FUD (Fear, Uncertainty, and Doubt) sentiment, it may actually be the best buying opportunity. Conversely, when FOMO (Fear of Missing Out) sentiment dominates discussions, it usually indicates that a temporary top is about to form.

Secondly, whale movements, a key forward-looking indicator for the market. Santiment's data shows that when the market declines, if there is a surge in large transactions of over $100,000, along with large whale addresses continuously accumulating, it is a strong bullish signal. These professional investors, who manage large amounts of capital, often remain calm and buy at the bottom during market panic. A recent typical case was when Bitcoin dropped to $76,000 in March, the daily accumulation by whales suddenly soared to 30,000 BTC, and the market indeed welcomed a strong rebound thereafter.

Another significant indicator not to be overlooked is the change in “average coin age.” When this indicator begins to decline while the “average holding time of tokens” suddenly spikes, it indicates that long-term holders are starting to use their chips. This awakening of dormant tokens often signifies that tokens are returning to normal circulation, and the market may be about to experience a turnaround.

Finally, Santiment emphasizes that when these three indicators resonate, the confirmation of the market bottom is the highest. Therefore, the current cryptocurrency market is at a critical juncture, and investors might want to pay more attention to these on-chain signals, as they may uncover clues for the next opportunity.

Do you think these signals are reliable? Do you have your own methods for identifying market bottoms?

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