As you know by now,Bitcoin suffered a significant drop in price the other day.
While enthusiastic traders freaked out, expecting the worse, there are a lot of investors who only see in this event a great opportunity to buy more Bitcoin at lower prices.
I bought more bitcoin last night.
I bought more bitcoin this morning.
Dollar cost averaging and multi-year time horizons allow you to view price decreases as opportunities to buy a great asset on sale.
— Pomp 🌪 (@APompliano) November 26, 2020
At the moment of writing this article, BTC is trading in the red, and the king coin is priced at 17,126.72.
What’s next for Bitcoin?
It’s been just revealed that the crypto analytics firm Santiment is warning euphoric Bitcoin investors about BTC’s near-term trajectory.
In a new market report, the firm says it’s firmly bearish on Bitcoin after a peak in sentiment and the coin’s latest rally above the $19,000 level.
Santiment said that a reversal is likely, given the fact that sentiment among BTC traders is “still quite positive currently, and we consider this to be confidently bearish territory based on history.”
What about XRP and Ethereum?
Regarding the important altcoins, Santiment is now slightly bearish on both XRP and Ethereum.
The company noted that traders should expect XRP to reach the local top in the near-term after a rise in positive sentiment.
“Generally, these major sentiment spikes on the positive side lead to an eventual local top. And there’s a high likelihood that this could come to fruition in the near future, in order to neutralize the euphoria happening around the #3 crypto asset by market cap.”
🎊📈 The #Ethereum party continues for bulls, as the asset has now peaked at $608. This officially marks a 30-month high with May 22, 2018 as the last time we saw this price. $ETH's supply on exchanges staying low will be crucial to this rally continuing. https://t.co/WHhfs5vOZF pic.twitter.com/FDDvKOZ7TH
— Santiment (@santimentfeed) November 23, 2020
Also, Santiment said that we should be paying attention to the supply of ETH on Crypto exchanges – the lower, the better.