According to the crypto analytics firm Santiment, Bitcoin (BTC) looks poised for a correction soon, suggesting that the recent surge in its price has made traders overly confident.
The firm observes a notable rise in crowd sentiment to greedy levels in response to BTC’s latest price movement.
“This often aligns with imminent local tops. These could manifest today, this weekend, or in the forthcoming weeks, based on whale activity at these price levels.
Therefore, don’t count on being able to repurchase BTC at $50,000 or $60,000 without significant economic red flags emerging globally.”
As of the time of writing, Bitcoin (BTC) is trading at $65,935, marking an increase of over 4% this week.
Ethereum Fees on the Rise
Turning to Ethereum (ETH), Santiment reports that Ethereum’s transaction fees have recently risen. However, this increase hasn’t dampened sentiment towards ETH.
“This muted response in social discussions implies that unless fees soar considerably, they won’t significantly hinder Ethereum’s usability in the near term.
It’s important to remember that rising fees can sometimes indicate the market nearing a speculative peak, driven by increased network activity during periods of market hype. However, the current mild fee increase is unlikely to be worrisome. Rather, it suggests healthy growth in Ethereum’s ecosystem, especially in DeFi and the speculative trading of smaller tokens.”
At the time of writing, Ethereum (ETH) is trading at $2,698, up nearly 3% over the past 24 hours.
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Disclaimer: Opinions expressed at The Daily Hodl do not constitute investment advice. Investors should perform their due diligence prior to making high-risk investments in Bitcoin, cryptocurrency, or digital assets. All transfers and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse buying or selling any cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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