Analysis of current market conditions: How to judge whether the market has bottomed out?
At this stage, the tight market funds and insufficient liquidity are obvious. So, how can we judge whether the market has bottomed out? The following key angles may provide some reference:
The linkage effect of Bitcoin and altcoins: When Bitcoin falls, if altcoins do not fall synchronously, this may indicate that the market depth still exists and large investors may still be operating in the market, which can be used as a reference signal that the market is close to the bottom.
Market sentiment: If the market sentiment is generally extremely pessimistic, this is often a strong signal that the market is close to the bottom. History has repeatedly proved that when investor sentiment drops to the freezing point, the market often brews the possibility of reversal.
Economic data: Although we cannot predict the specific performance of important data (such as CPI, etc.), any better-than-expected economic data may become a catalyst for market confidence recovery and trend reversal when the market is already in an unfavorable situation.
Investment is risky and judgment needs to be cautious. Stay calm, analyze rationally, and seize every opportunity in the market.
