As the market continues to consolidate, long-term holders% continues to rise.

Looking at the current technical chart structure, there might be a possibility of a sharp price decline. However, from the perspective of long-term and short-term liquidity, there is a lack of available selling liquidity.

Conversely, due to the lack of liquidity to push prices higher, accumulation is happening quietly off-exchange within the current consolidation phase.

In the end, within this current consolidation range, if there is a significant issue or trigger in the market, it could lead to a price breakout. However, if such a trigger doesn't emerge, we might see some minor fluctuations, but the likelihood of a major price drop is low. Instead, the market is expected to continue to consolidate without significant upward movements due to the absence of liquidity to drive prices higher.

Furthermore, price surges are likely to occur not as an immediate reaction to the announcement of significant news or triggers but rather after the market has already begun to move upwards. The announcement typically comes after a significant price increase has already taken place.

During such times, we can keep an eye on the ratio of short-term holders, as seen in the second picture, to help inform our selling decisions.

Let's be patient and observe.

Written by Mignolet