In a recent analysis, Santiment pointed out that Bitcoin’s trading volume has dropped since July’s peak, creating what it calls a “bearish divergence.”
Network activity has also slowed, with declines in daily active addresses and growth, raising questions about whether current price levels are sustainable.
Their MVRV (Market Value to Realized Value) metrics also suggest potential pressure ahead. Bitcoin’s long-term MVRV sits at 21%, hinting at limited upside.
For Ethereum, the picture looks even riskier, with a 90-day MVRV of 40% and a 365-day MVRV of 57% — levels Santiment says could trigger stronger corrections.
Santiment’s data shows Bitcoin “whales” holding 10 to 10,000 BTC have steadily accumulated since March without selling, signaling long-term confidence. Retail investors with smaller holdings are also buying, but analysts warn that simultaneous buying by both groups typically precedes a cooling-off period.
On social media, “buy the dip” chatter has spiked following the latest pullback, which Santiment views as a contrarian indicator of excess optimism. Analysts conclude that the mix of slowing fundamentals, high MVRV ratios, and euphoric sentiment should encourage caution, even as Bitcoin and Ethereum push toward historic price levels.
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