What Does On-Chain Data Point to in Bitcoin and Altcoins: Bullish or Bearish? Santiment Reviewed!

Bitcoin, which has recorded a nice rise since October, known as the rise month, rose from $ 27,000 to $ 44,700.

Meanwhile, while there are fluctuations in the BTC price, these fluctuations make investors nervous. At this point, popular analysis platform Santiment examined the factors and changing dynamics affecting the course of Bitcoin and the broader crypto market.

Stating that the market has become exciting in the last few weeks, Santiment stated that the bulls and bears are fighting hard.

Pointing out that Bitcoin and altcoins such as Chainlink, Cardano, Solana and XRP all recorded impressive rises in 2023 and especially in the 2nd half, Santiment examined how BTC and altcoins could perform afterwards.

Referring to transaction volumes, social volume and stock market supply at this point, Santiment said that some data point to an upward trend, while some data point to a horizontal and downward trend:

“Transaction volumes of Bitcoin and altcoins have slowed down especially in the last week. While Bitcoin’s transaction volume surprisingly remained at its highest level since October, there were actually declines in the volume of many altcoins.

This may be a reflection of the fear and uncertainty in the crowd and an indication that the FOMOers are gone. This may be a sign of an increase.

At the same time, we see that social volume in Bitcoin reached its peak in the first week of December, and social volume in altcoins increased in the following weeks.

While this situation is considered normal, it shows that BTC profits have been distributed to altcoins for one last bullish cycle.

The decrease in transaction volume and the change in social volume of BTC and altcoins does not necessarily mean that prices have peaked.

Because as FOMO and enthusiasm decreases, market values may rise. In fact, in many cases, the decline in FOMO actually strengthens the possibility of further uptrends.”

Finally, looking at the supply of Tether and Bitcoin on the exchanges, Santiment pointed out that moving more Tether and stablecoins to the exchanges could mean that prices will increase in the future.

Santiment said, “The increase in the amount of USDT and USDC transferred to the exchanges is a good sign because it means that more purchasing power is moved to the exchanges, even if this increase occurs together with Bitcoin and crypto sales. However, ultimately, the 3.5% increase in the supply of Bitcoin on the exchanges is a bigger sign.” “It is a cause for concern. Because the increase in BTC supply means that there may be sales soon, and these sales may cause a decrease.” said

“Bitcoin and Altcoins are at the Crossroads!”

Stating that the data shows that Bitcoin and altcoins are at a crossroads at this point, Santiment concluded his analysis by stating that there are both bullish and bearish signals.

“Overall, there are signals that Bitcoin and altcoins will exhibit sideways movements for a while.

However, while the bulls attacked in the last quarter of 2023, the bears did not remain silent.

At this point there is a huge conflict between bulls and bears as we see right now.

“As a result of this conflict, we often see Bitcoin and altcoins once again returning to a period of exchange that is boring for investors.”

📊 #Bitcoin is now back above $42.5K as its volume has stayed in line with levels it began to increase to once the #bullrun started back in October. However, will #altcoins fare the same? We touch on some comparative charts in our latest insight. 👇 https://t.co/avHMfS3Dy9 pic.twitter.com/1mrbski2zR

— Santiment (@santimentfeed) December 20, 2023

*This is not investment advice.