Key Factors Necessary for the Continuation of Bitcoin (BTC) Rally, According to Santiment Analysis

  • On-chain analysis platform Santiment has highlighted key factors necessary for the continuation of the current crypto market rally.
  • The analysts pointed out that the recent surge in cryptocurrencies, fueled by the US non-farm payroll data released on Friday, requires a market condition devoid of FOMO for its sustenance.
  • Santiment also noted that short positions played a significant role in Bitcoin’s abrupt reversal from $58,000 to $64,000, indicating that investors are once again taking long positions.

On-chain analysis platform Santiment discusses the factors necessary for the continuation of the current crypto market rally, emphasizing the need for a market condition devoid of FOMO.

Bitcoin’s Rally and the Role of Short Positions

According to Santiment, short positions played a crucial role in Bitcoin’s sudden reversal from $58,000 to $64,000. This suggests that investors have started taking long positions again. The analysts implied that a market where the majority are taking long positions cannot sustain a long-term rally, and therefore, funding data should be closely monitored.

Need for Calm Market Conditions

In order for the reaction to be sustainable, it is necessary for purchases in the spot market to increase and for FOMO to calm down. Bitcoin rallied on Friday, increasing its market value by 5.4% within 24 hours. The crowd completely changed direction in Binance transactions. This means that after this jump, liquidated short positions have turned into longs. We do not want to see FOMO rise much more than it is now for the rally to continue.

Conclusion

In conclusion, the continuation of the current crypto market rally requires a calm market condition devoid of FOMO. Investors are encouraged to closely monitor funding data and be mindful of the market’s direction. The recent surge in Bitcoin, fueled by liquidated short positions turning into longs, is a clear indication of the market’s potential for further growth.

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Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
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