Santiment Data Shows the Bearish Phase for BTC and ETH Could End Soon
A tweet from crypto monitoring platform Santiment shows that the recent bear market cycle could be winding down. The analytics firm highlighted that a key macro metric dubbed the ‘mean dollar invested age’ could be about to activate, hinting at an imminent bull run for bitcoin and Ether.
https://twitter.com/santimentfeed/status/1425231468473716742
An Imminent Bull Market Cycle?
The indicator measures the average period that investment dollars remain dormant in the same addresses. The latest data shows that dormant investments in BTC and ETH are starting to move again, indicating that the bearish sentiment that has recently gripped the market could be shifting.
The flattening of the average age dollars invested in BTC and ETH is a welcome sign for many crypto traders who have endured the worst of the recent market retracement. The Santiment metric tells investors that there is healthy circulation in the crypto market, pointing to a possible bull run in the near term.
The dip in the mean dollar age metric has coincided with a continued increase in BTC prices over the past few days, with the king coin hitting highs above $46.5K on Tuesday. The top cryptocurrency is currently hovering in the $45 to $46K range, with the next major resistance sitting near $47K.
A BTC Golden Cross is Approaching
Another promising indicator that the bitcoin uptrend could continue is the approaching bitcoin “golden cross,” which is considered a bullish event.
In a recent tweet, Rekt Capital shared a chart showing the new golden cross is due in three days as bears fail to force any significant pull back in the BTC markert. The respected analyst added that bitcoin had finally confirmed a breakout in the four-hour chart.
The new #BTC Golden Cross is only 3 days away$BTC #Crypto #Bitcoin pic.twitter.com/JbbHzIzQ6r
— Rekt Capital (@rektcapital) August 10, 2021
Bitcoin proponents will now be eyeing $46.5K, as a clear break above this level could open the door for more gains in the near term.
Meanwhile, ETH prices have accelerated above $3,200 over the past few days amid increased investor interest following the recent London Hard Fork upgrade.
Bitcoin Continues to Outperform Gold
Bitcoin continues to vastly outperform gold as the bulls mount an impressive comeback from the mid-May market slump. As BTC/USD roared past the $45K support at the start of the week, gold suffered a sharp fall to $1,729, a significant correction from its $1,941 price seen at the start of 2021.
Gold’s 10-year returns have flipped negative in recent months as BTC continues to accumulate gains. The price of gold now looks weaker at 0.038 BTC per ounce, which is close to its record low of 0.02746 BTC seen in April when bitcoin hit its lifetime high.
The precious metal’s weakening performance has caught the attention of crypto enthusiasts, who view bitcoin as the natural replacement for gold.
“A single bitcoin is now worth 21 ounces of gold. Poetic,” a tweet from crypto trading platform FTX noted.
