The current market situation is indeed not optimistic, which is obvious to all.
Why is the market so weak? In general, it is mainly due to insufficient liquidity, which leads to a continuous downward trend. To judge whether the market has bottomed out, we can start from the following dimensions:
1. Observe whether altcoins follow the decline when Bitcoin falls, which is equivalent to relying on the auxiliary judgment of large investors, venture capital companies and market makers.
2. Analyze whether market sentiment has reached the level of despair.
3. Pay attention to whether there is a new turnaround, such as the upcoming CPI data. Although we cannot predict the specific direction of the data, when the market situation cannot deteriorate any further, any data may become an opportunity for improvement.
In any case, I still believe that the interest rate cut policy and other positive factors between the election in September and November at the latest may bring support to the market. In addition, from Thanksgiving to before the Spring Festival may be the traditional off-season, investors only need to wait patiently for the opportunity and adjust their strategies in time.
The article has a delay. If you don’t understand the market and need real-time explanations to learn technical techniques and experience, please read my introduction to the industry.
