#加密市场盘整

Why does the market enter a consolidation phase?

First of all, the background we are based on is that we are still in a bull market, with a large influx of funds into the market, making it an active market whether going long or short.

Then, there has been a price increase over the past month, but the bullish funds in the market have gradually decreased, leading to difficulties in further price increases, and the weakness of bulls has allowed bears to suppress the bulls.

More funds have little expectation for the market to rise, so they choose to take profits, resulting in selling pressure that creates a downward trend.

As for the Fed's interest rate cuts and hawkish stance, it is merely an excuse for more funds to choose to go short.

Through a panic sell-off, the bearish chips are consumed, driving the market prices down.

The subsequent pullback is due to the prices dropping to levels that many traders consider suitable for entering the market.

However, since the amount of funds cannot drive the market, it ultimately turns into the current consolidation phase.

During this period, many funds may choose to exit, resulting in the total funds in the market being less than the funds that drove the previous increase, leading to insufficient expectations for the current rise, while the expectation for a decline still exists. However, due to the bull market, trading remains active, and many people still choose to enter at the right time, resulting in prices consolidating within a certain range.

Now either large funds from outside the market will flow in, allowing the market to emerge from the pessimistic outlook on declines, or it will continue to oscillate during this period.