Bitcoin flashes potentially bullish indicator amid a downtrend in the crypto market, according to analytics firm Santiment

According to digital asset analytics firm Santiment, Bitcoin (BTC) is a potentially bullish indicator amid a general crypto market downturn.

The firm notes in a new post on the social media platform

explains Santiment,

“This BTC ratio is at its lowest level in 2 months. Lower levels generally warrant more bullish conditions.”

BTC is trading at $59,170 at the time of writing. The highest-ranked crypto asset by market capitalization is up more than 2.5% in the past 24 hours, but is down more than 8% in the past seven days.

A fellow analytics company, CryptoQuant, looked potential factors that caused the BTC market downturn this past week.

“Market sentiment towards Bitcoin is declining, evidenced by negative Coinbase premiums and less leverage in futures. This decline in enthusiasm indicates a cautious approach by traders.

A slowdown in BTC demand from large investors (whales) is evident. Growth peaked at 12% month-on-month at the end of March, now down to 6%. Such a delay will impact potential price increases, which are dependent on robust demand for whales.”

CryptoQuant too notes that miners have been selling BTC, which has increased the market’s supply and “undermined potential price support.” According to the analytics firm, the increased short positions also indicate that traders are betting on key crypto assets to fall lower.

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Generated image: Midjourney