The market moved yesterday when there were more heavy sanctions announced against Russia. Heavy tensions very visible. The market moved and both sentiment and funding rate turned negative. Which proved to be enough for bottoming out.
These two metrics alone are able to indicate reaction of market participants after the move took place. So that you could act accordingly.
If the move down pushed sentiment or funding rate deep enough, it could be a chance to buy. And visa versa.
Chart layout: https://app.santiment.net/s/ecbfcd6i
Anyone that's used (or tried to use) Ethereum in the past 30-60 days is painfully aware of the mounting fee problem tackling the network.
At the time of writing, the average fee to interact with the Ethereum blockchain stands at $12.2, though it regularly climbs to 3-4x that number on occasion.
What is less talked about, however, is that many recent fee spikes only really last about 30-60 minutes, and often seem to coincide with ETH's local price bottoms and short-term bouncebacks:
While the pattern is far from conclusive, it may suggest that at least some fee hikes may be prompted by panic sell-offs and 'paper hand' capitulation, which - assuming enough 'buy the dip' pressure - ends up marking an interim bottom for the second largest coin.
Bitcoin shot up to a record-setting ~$58.3k on Sunday. And if you were watching, you would have seen a massive exchange inflow spike:
There were 59,915 BTC in a single hour, just as prices jumped over $58,300. This was the largest spike in 16 weeks. And for context, the 200-hour resting average was sitting at 5,032 BTC moved to exchanges per hour. This means this spike was 1,091% higher than the recent mean.
We can also look at how this spike looked from an Exchange Flow Balance (Inflow minus Outflow) perspective:
Generally, when not preceded by a big outflow, inflow spikes lead to price corrections.
This exchange inflow was assisted by the 2nd largest BTC transaction of 2021 to a large whale address, which instantly disposed of the funds.
The address history shows similar patterns, going all the way back to a contributive quick sell-off on Black Thursday.