Santiment, a leading on-chain data and social analytics company, shared critical data on the current state of the cryptocurrency market and the conditions under which a potential uptrend might occur in the coming summer months.
Santiment analyst Brian Quinlivan examined investor sentiment and profitability rates in Bitcoin and leading altcoins.
Bitcoin, after reaching $81,000 two weeks ago, has been consolidating around the $77,000 mark in recent days. According to Santiment data, the overall bullish sentiment in the market (bull/bearish ratio) is hovering around an average of 1.35. This indicates that there is neither excessive fear nor excessive excitement (FOMO) in the market.
The 30-day MVRV (Market Value to Realized Value) metric is at +5%. This indicates that the risk for short-term buyers is slightly higher than average due to the 16-17% increase since the beginning of April.
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The 365-day MVRV is at -16%. This means that the average investor who traded in the last year is still at a loss. The analyst argues that for those planning to hold long-term investments (HODL), these levels historically correspond to periods of “accumulating energy while the market is vibrant.”
“Summer Rally for Bitcoin Depends on Big Whale Movements”
According to the analyst, the biggest obstacle to a summer rally is whale activity. Large wallets holding between 10 and 10,000 BTC have sold a total of 30,870 Bitcoin since the local peak on April 24th. According to Santiment, a strong rally in the summer months depends on these whales returning to accumulation mode.
The correlation between the cryptocurrency market and the US stock market (S&P 500) remains strong. While the S&P 500 index experienced a slight correction after hitting a new record high in mid-May, it is showing signs of recovery towards its peak. Bitcoin suffered a sharp drop over the weekend while traditional markets were closed. According to Santiment analysts, if the S&P 500 maintains its strength, Bitcoin is expected to launch an upward move to close the gap.
*This is not investment advice.
