Several simple signals to judge the bottom of the market, for newcomers in the cryptocurrency circle:
1. The trading volume is as small as a snail
Imagine that if you are a stall owner in a big market, but there are very few people coming to buy things, then your business will definitely not be very prosperous. The same is true in the cryptocurrency circle. If the trading volume of mainstream tokens such as ETH, SOL, and Bitcoin becomes very small, for example, there is not even $500 million in a day, it means that the market sentiment is very low now, and no one wants to trade.
2. There are very few investment and financing news
In the past, there were always a lot of investment and financing news in the cryptocurrency circle, but now it has suddenly become less. This may be because venture capital companies are also hesitant, or they cannot reach an agreement with the valuation of the project.
3. The total market value of USDT has declined
USDT is a stable currency in the cryptocurrency circle, just like the cash we usually use. If its total market value begins to decline, it means that some funds have withdrawn. But if the market sentiment is not good, but the total market value of USDT is still rising, then be careful, there may be a lot of funds waiting for the opportunity to buy at the bottom.
4. Twitter is quiet
There used to be a lot of people on Twitter discussing the cryptocurrency world and posting trading orders, but now it has become very quiet. No one is talking, no one is posting trading information, it's like the market has entered a hibernation period.
5. Ethereum's gas fee is as cheap as cabbage
Trading on Ethereum requires paying gas fees, just like we have to pay handling fees when we go to the supermarket to buy things. But if this handling fee becomes very low, even below $10, it means that there are very few transactions on Ethereum now, and the market is very quiet.
Bold prediction
I think the price of Ethereum may fall to $2,500, and Bitcoin ($BTC) will challenge the high of $52,000 again sooner or later.
But!
Although the market looks a bit quiet now, it doesn't mean that the market won't heat up in the second half of this year. The market will always have ups and downs, and we may be at the bottom of such an ups and downs now.
This week we will lay out several 10x coins. If you are interested, read the following sentence.
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