According to a recent tweet from Santiment (@santimentfeed), a blockchain analytics firm, both long-term and short-term Bitcoin (BTC) holders have experienced a surge in average returns, marking the first time in 14 months that the figures have entered positive territory.
Santiment’s tweet also included their latest Insights, delving into the significance of this pivotal technical occurrence to predict the forthcoming bull run.
Yesterday’s report highlights the significance of Santiment’s MVRV Long/Short Divergence tool in guiding investors toward informed long-term decisions. The report emphasizes that this tool has consistently served as a reliable indicator for the end of the bear cycle in the crypto market leader, with the Long/Short Divergence line crossing 0 as a key signal. This valuable insight can assist investors in navigating the volatile crypto market with greater confidence and precision.
According to the report, the Long/Short Divergence line has recently surpassed 0. However, it is important to note that this does not necessarily indicate the end of the bear market. Santiment, a trusted source for investors and traders, has advised caution and warned that BTC’s price might experience a decline in the upcoming weeks. This is because the MVRV Long/Short Divergence indicator is long-term and should be viewed as such.
According to Santiment’s Insights, a prudent approach to trading BTC shortly would be to await the Long/Short Divergence line’s crossing of 0, prepare for a potential market downturn, and subsequently initiate a long position. As the Long/Short Divergence line has indeed crossed 0, traders and investors should be prepared for a possible decline in BTC’s value in the upcoming weeks.
As of the time of publication, the current value of BTC is $27,759.57, reflecting a modest uptick of 0.47% over the past 24 hours, as reported by CoinMarketCap. This incremental increase has contributed to BTC’s overall positive weekly performance, which currently stands at an impressive +13.25%.
