Traders Are Watching These 2 Altcoins For Bitcoin And Ethereum!

The cryptocurrency market, which has been struggling with fluctuations lately, is witnessing a new wave of activity. The actors behind this wave are investors called “bullish” who believe that prices will increase. According to the information shared by the Bitcoin and altcoin analysis platform called Santiment, these investors are looking for buying signals, especially by following liquidations.

Santiment pointed out those altcoin projects

Although the cryptocurrency market has been experiencing fluctuations lately, some investors believe that this situation creates a buying opportunity. A post made by the cryptocurrency analysis platform called Santiment shows that bullish investors follow two platforms in particular and look for buying signals by looking at liquidations.

It is noteworthy that the value of positions liquidated in the field of decentralized finance (DeFi) is still low. In the past, it was observed that the cryptocurrency market began to recover when liquidations increased on platforms such as Aave and Compound. According to DefiLlama data, Aave is among the largest DeFi platforms with a TVL (Total Locked Value) of $ 12.4 billion.

What levels will we see?

Forced sales by liquidated investors are seen as an opportunity by investors in the buyer position. According to Santiment’s post, bullish investors interpret liquidations on DeFi platforms as a sign that Bitcoin will rise to $ 70,000 and Ethereum will rise to $ 4,000 in a short time.

Looking at historical information, it seems that Ethereum and Bitcoin prices started to rise quickly after a large amount of Wrapped Ethereum (WETH) and Wrapped Bitcoin (WBTC) were liquidated on the Aave v3 platform. Wrapped Bitcoin is an ERC-20 token that reflects the value of Bitcoin (BTC) at a 1:1 ratio. It was developed so that Bitcoin can also be used in the Ethereum ecosystem. Wrapped Ethereum, which mirrors Ethereum, acts as a bridge between Ethereum and Ethereum-based dApps.

In light of this information, it is understood that some bullish investors see liquidations as a buying opportunity and expect that Bitcoin and Ethereum prices may increase in a short time. However, it should not be forgotten that the cryptocurrency market is quite volatile and it is important to do detailed research before investing.

What is the latest situation in the market?

Meanwhile, as we reported as Kriptokoin.com, Bitcoin’s price movements were once again heavily influenced by major economic developments on the US front, as it fell from $70,000 to $66,000 ahead of US CPI information and the last FOMC meeting. Altcoins have also faced major fluctuations recently, but PEPE was at the top with a 10% increase.

The primary cryptocurrency ended last week on torrid form, falling from $72,000 to below $68,600 within hours. The weekend was much less eventful as the asset recovered somewhat to hover just above $69,000.