Santiment predicts possible bitcoin rally following the weekend collapse

What’s new? Analyst firm Santiment Feed said it expects the cryptocurrency market and the value of digital assets to rise again. According to the experts, there are a large number of short trades on exchanges, as traders fear that the market will once again fall to June levels. The analysts believe that such a situation could give impetus to a further rise in the price of bitcoin. Santiment wrote about it on Twitter.

📈 After #Bitcoin fell below $20.9k and #Ethereum below $1,540 yesterday, markets have rebounded a bit. Exchanges are seeing high levels of #short trades coming in, as people fear drops to June levels again. As long as they bet against markets, there is a higher chance of a rise. pic.twitter.com/Ang11S6f7R— Santiment (@santimentfeed) August 21, 2022

What events affected bitcoin's value? According to analysts, June was the worst month in bitcoin history, with the price of the asset falling 38%. The weak price trend was the result of deteriorating macroeconomic conditions combined with the collapse of several cryptocurrency lending companies after the Terra fiasco in May. However, the markets saw a spectacular rise in July, with bitcoin rising more than 17% in price.

The publication of the minutes of the US Federal Open Market Committee (FOMC) meeting in July led to panic in the market, as the document showed the Federal Reserve System's (Fed) desire to continue raising rates. As a result, bitcoin fell below $21 000 and Ethereum fell below $1600, with both assets collapsing for the first time in weeks.

As of August 22, 12:50 UTC, bitcoin is trading at $21 209, having lost 1,19% in 24 hours. Ethereum is trading at $1562, down 3,76%, according to Binance.

Earlier, Santiment discovered a factor that could indicate the start of Ethereum's bullish phase. Experts reported a rise in the supply of ETH, which was held up by the addresses of leading exchanges. This was due to traders dumping their stocks to major exchanges during the downturn in the crypto market. Analysts advised keeping an eye on the decline in supply at ETH exchange addresses as a bullish signal.