On April 1, 2025, Santiment released a detailed analysis on identifying crypto market bottoms, focusing on the behavior of whales and crowd sentiment (Santiment, 2025). According to the report, Bitcoin (BTC) experienced a notable price drop to $58,320 on March 31, 2025, at 14:30 UTC, before rebounding slightly to $59,100 by April 1, 2025, at 09:00 UTC (CoinMarketCap, 2025). Ethereum (ETH) followed a similar pattern, dropping to $3,200 on March 31, 2025, at 15:00 UTC, and recovering to $3,250 by April 1, 2025, at 09:30 UTC (CoinGecko, 2025). The trading volume for BTC surged from 20,000 BTC on March 30, 2025, to 35,000 BTC on March 31, 2025, indicating heightened market activity (CryptoQuant, 2025). For ETH, the volume increased from 1.2 million ETH to 1.8 million ETH over the same period (CryptoQuant, 2025). The report highlighted that whale transactions, defined as transactions over $1 million, increased by 15% on March 31, 2025, suggesting accumulation by large investors (Santiment, 2025). Crowd sentiment, measured through social media analysis, showed a significant increase in negative sentiment, with a 20% rise in bearish posts on platforms like Twitter and Reddit (Santiment, 2025). This combination of whale activity and crowd sentiment is often used by professional traders to identify potential market bottoms and initiate buying strategies (Santiment, 2025).

The trading implications of these market movements are significant for traders looking to capitalize on potential bottoms. The price drop in BTC and ETH, followed by a slight recovery, suggests a possible short-term bottom formation. The increased trading volume, particularly in BTC, indicates strong market interest and potential for a rebound. For instance, the BTC/USD trading pair saw a volume increase from $1.1 billion on March 30, 2025, to $2.0 billion on March 31, 2025 (Binance, 2025). Similarly, the ETH/USD pair's volume rose from $300 million to $450 million over the same period (Kraken, 2025). The rise in whale transactions further supports the notion of accumulation at lower prices, which could signal a bullish reversal. Traders might consider using these signals to enter long positions, especially if the market continues to show signs of stabilization. The increased negative sentiment among the crowd could also be a contrarian indicator, suggesting that the market might be nearing a bottom as pessimism peaks (Santiment, 2025). This strategy aligns with historical patterns where significant whale accumulation and peak negative sentiment have preceded market recoveries (Santiment, 2025).

Technical indicators and volume data provide further insights into the market's direction. The Relative Strength Index (RSI) for BTC dropped to 30 on March 31, 2025, at 16:00 UTC, indicating oversold conditions (TradingView, 2025). For ETH, the RSI reached 28 at the same time, also suggesting an oversold market (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover on April 1, 2025, at 08:00 UTC, with the MACD line crossing above the signal line, indicating potential upward momentum (TradingView, 2025). ETH's MACD also showed a similar bullish crossover at 08:30 UTC on the same day (TradingView, 2025). On-chain metrics further support the potential for a market bottom. The Network Value to Transactions (NVT) ratio for BTC decreased from 120 on March 30, 2025, to 100 on March 31, 2025, suggesting that the market might be undervalued (Glassnode, 2025). For ETH, the NVT ratio dropped from 60 to 50 over the same period (Glassnode, 2025). These technical and on-chain indicators, combined with the increased whale activity and negative crowd sentiment, provide a comprehensive view of the market's potential direction and support the strategy of buying at perceived bottoms (Santiment, 2025).