Santiment, a leading blockchain intelligence platform, recently provided ideas that point to a favorable short-term scenario for bitcoin (btc). However, based on other signs that seem “hidden”, there is a problem.
These on-chain metrics can serve as a north star for investors looking to strategize their next steps. However, by another metric, while Santiment’s recent revelations could hint at continued positive momentum for bitcoin, there is also a possible counter-move that could occur.
bitcoin Sentiments Bullish On-Chain Indications
Santiment’s recent post revealed a positive narrative for btc‘s immediate future. One of the key metrics supporting this bullish outlook is the significant number of active bitcoin addresses.
It is worth noting that an increase in active addresses may indicate increased adoption, investor interest, and overall network health. Furthermore, an increase in active movement of previously dormant tokens hints at renewed interest from traders.
According to Santiment, such activity has often coincided with bullish trends, making it an essential metric to monitor.
If you are worried about a crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#crypto go back, please note that bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin still maintains a high rate of active addresses. Additionally, the largest market cap asset is seeing a high level of inactive tokens now moving, usually synonymous with #bullish conditions. https://t.co/bvjDL2Shga pic.twitter.com/NvxKkQpkg8
– Sentiment (@santimentfeed) October 26, 2023
Given these metrics revealed by Santiment, bitcoin may still have more rallies to overcome. However, at aAnother layer of intrigue to the current market scenario is the behavior surrounding meme coins, especially PEPE.
According to Onchain Capital co-founder and crypto Banter host Ran Neuner, meme coins, with their viral nature and rapid price movements, sometimes act as a barometer of market sentiment, even if they are unconventional.
The performance of PEPE: a control of the market temperature?
While Santiment’s report offers optimism, some market observers use unique indicators to detect potential changes in the market. PEPE, a meme coin, has recently caught the attention of several prominent crypto figures.
Ran Neuner recently mentioned that PEPE could act as an indicator of an overheated market. The logic? When traders and investors flock to these tokens and see significant price increases, it could be a sign of excessive optimism in the market. An event to walk with caution.
If you want to know when a pullback will occur, just watch $PEPE. It is literally an index of when the market is overheating. When people are confident enough to go there and it works, that’s the signal to get out. It works all the time. pic.twitter.com/vMcqiddHwp
– Ran Neuner (@cryptomanran) October 26, 2023
In particular, PEPE increased by more than 80% last week. The meme coin has skyrocketed from a low of <span class="no-wrap" data-price-btc=”3.5051563528070644e-11″ data-coin-id=”29850″ data-coin-symbol=”pepe” data-target=”price.price” data-price-previous=”0.0000011775618684803555″>$0.00000650 seen last Friday, up to a high of $0.00000118 at the time of writing. Following the recent price increase, PEPE is currently down 1.1% in the last 24 hours.
Furthermore, in what seems to complement Neuner’s proposed indicator, bitcoin, has seen a fairly notable pullback from its recent peak above $35,000. The asset is currently trading at $33,620, down 1.1% at the time of its write-down in the last hour.
Featured image from ShutterStock, chart from TradingView
