The crypto market continues to consolidate, the percentage of long-term holders is increasing.
Looking at the current technical chart structure, there is a possibility of a sharp price decline. However, from a long-term and short-term liquidity perspective, there is a lack of sales liquidity.
Instead, due to a lack of liquidity to drive prices up, accumulation is occurring silently outside of exchanges in the current consolidation phase.
Ultimately, in this consolidation range, if there is a significant problem or trigger in the market, it could cause a price increase. However, if there is no trigger, we may see small fluctuations, but the probability of a large price drop is low. Instead, the market is expected to continue consolidating without any significant upward movement due to the lack of liquidity to push prices up.
Furthermore, price spikes likely occur not as a direct reaction to news announcements or significant triggers, but rather after the market has already started moving up. The announcement usually comes after a significant price increase has already occurred.
During periods like this, we can keep an eye on the short-term holding ratio, as seen in the second image, to help inform our selling decisions.
Let's be patient and observe.
Written by Mignolet
Looking at the current technical chart structure, there is a possibility of a sharp price decline. However, from a long-term and short-term liquidity perspective, there is a lack of sales liquidity.
Instead, due to a lack of liquidity to drive prices up, accumulation is occurring silently outside of exchanges in the current consolidation phase.
Ultimately, in this consolidation range, if there is a significant problem or trigger in the market, it could cause a price increase. However, if there is no trigger, we may see small fluctuations, but the probability of a large price drop is low. Instead, the market is expected to continue consolidating without any significant upward movement due to the lack of liquidity to push prices up.
Furthermore, price spikes likely occur not as a direct reaction to news announcements or significant triggers, but rather after the market has already started moving up. The announcement usually comes after a significant price increase has already occurred.
During periods like this, we can keep an eye on the short-term holding ratio, as seen in the second image, to help inform our selling decisions.
Let's be patient and observe.
Written by Mignolet