“Blood in the streets?” On-chain metric suggests it’s time to buy

• The MVRV metric suggests most altcoins are underbought and present a buying opportunity.
• A new leg down could however push some of the tokens into a danger zone.
• Crypto prices have decline alongside weaknesses stocks.

The total cryptocurrency market cap is down 1.7% at the time of writing as the broader crypto market battles yet another bout of heavy losses.

Bitcoin price fell below $21,700 again while Ethereum traded to lows of $1,530 on Thursday, with the leading crypto assets continuing the weakness we highlighted on 8 March.

Santiment data signals “time to buy altcoins”

According to analysts at market intelligence firm Santiment, the “heavy bleeding” witnessed across the crypto market this week has many altcoins flashing buy signals. Many of the altcoins suggest an underbought outlook as traders realize losses, the firm noted in a tweet posted early Thursday.

One indicator pointing to current price levels as opportune buying zones is the Market Value Realized Value (MVRV) ratio. While prices could still fall, Santiment suggests most altcoins are trending in an opportunity zone where prices are likely to rebound higher.

Notably though, the market could still see a new leg down, pushing some of the coins into the danger zone.

“If you have been awaiting the time to buy altcoins when there is blood in the streets, our MVRV model indicates that this time has arrived. Prices can of course still fall further, but this is the most crypto assets have been in opportunity zones since early January” Santiment tweeted.

🤠📊 If you have been awaiting the time to buy #altcoins when there is blood in the streets, our MVRV model indicates that this time has arrived. Prices can of course still fall further, but this is the most #crypto assets have been in opportunity zones since early January. pic.twitter.com/LoM4ooiGUU

— Santiment (@santimentfeed) March 9, 2023

As CoinJournal reported earlier this week, the downside followed more negative news around crypto bank Silvergate and this week’s economic commentary from Fed Chair Jerome Powell.

In particular, the Fed’s hawkish outlook has the market anxious and that was visible as stocks also fell on Wednesday.

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