When the Rise Comes In addition to short-term price fluctuations, there is widespread concern about the liquidity conditions in the cryptocurrency market. Industry analysts pointed out that the current market is facing serious liquidity depletion problem.
According to statistics, in June 2024, the total trading volume of the cryptocurrency market continued to be at a low level. It is expected that market liquidity may further deteriorate in the future, exacerbating price fluctuations.
The reasons for this situation are complex: on the one hand, the global macroeconomic environment is uncertain, and investors are generally cautious; on the other hand, the short-term behavior of funds has increased significantly, and investors have an obvious wait-and-see attitude. The current situation is also exacerbated by liquidity problems in the cryptocurrency market itself, and these factors combine to make it difficult for the market to fundamentally improve in the short term.
In the current context, people are paying attention to when the cryptocurrency market will usher in a rising tide in the future. Analysts have given different predictions about the future direction of the market.
Some analysts believe the current "drought" in the market may be setting the stage for future gains. They regard the current "dreary" market as the calm before the storm. The relatively low trading volume at this time means that the market sentiment is relatively stable and funds are resting to accumulate momentum for the next wave of gains.
However, for cryptocurrency prices to resume their upward trend, the key lies in the promotion of major positive factors, such as an improvement in the regulatory environment and a large-scale entry of institutional funds. Only when these supporting factors are in place can the market get rid of the current downturn and usher in a new round of price surges.
Of course, some analysts are pessimistic. They believe that the previous rapid rise in the cryptocurrency market has triggered extremely high expectations, but the actual situation has not met widespread expectations, which may make the current bull market particularly difficult.
Currently, Bitcoin has formed a "double top" pattern, which is often seen as a signal that the price may fall further. If the market falls below key support levels, Bitcoin could continue to dip towards levels around $50,000. Therefore, the cryptocurrency market is likely to remain sideways for an extended period in the coming period.
