Several simple signals to judge the bottom of the market, for newcomers in the cryptocurrency circle:
1. 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, such as not even $500 million a day, it means that the market sentiment is very low now and no one is willing to trade.
2. There are 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 cannot reach an agreement with the valuation of the project.
3. USDT total market value declines
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 If its total market value begins to decline, it means that some funds have withdrawn.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 world of cryptocurrency and posting trade orders, but now it has become very quiet. No one is talking, no one is posting trade information, and the market is like entering 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 calm now, it does not mean that the market will not heat up in the second half of this year. The market always has ups and downs, and we may be at the bottom of such ups and downs now.
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