Bitcoin faced strong selling pressure after the spot ETF approval and fell to $41,000 levels.
While there were sharp declines in BTC, altcoins remained stronger compared to Bitcoin.
In fact, the increased expectation that spot Ethereum ETF approval would be next after Bitcoin ETFs caused ETH and some altcoins to rise.
Making an assessment at this point, Santiment reported that Bitcoin, Ethereum and XRP are currently exhibiting historically high risk profit levels.
Stating that these figures exceed the average 55%-75% range dating back to 2018, Santiment said that although ETH shows an upward potential due to increasing risks and positive news from ETFs, profitability must be met in order for sustainable long-term growth in ETH, BTC and XRP to occur. He said that the level should fall below 75%.
At this point, it was stated that these levels could be interpreted as a correction signal for BTC, ETH and XRP.
“Bitcoin (83%), Ethereum (84%) and XRP (81%) supplies are at high-risk profit levels. These levels have exceeded the average 55%-75% range dating back to 2018.”
But cryptocurrencies could certainly still rise due to greater exposure.”
💰 #Bitcoin (83%), #Ethereum (84%), and #XRPLedger (81%) have their respective supplies in historically high risk profit levels compared to their averages that hover in the 55%-75% range dating back to 2018. #Crypto can absolutely still climb due to more exposure from pic.twitter.com/ADmMcl5zhO
— Santiment (@santimentfeed) January 18, 2024
*This is not investment advice.
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