Market Analysis Company Swissblock, Bitcoin $101,295.16 has published a critical warning for. According to the company’s latest report, Bitcoin’s chain liquidity is experiencing a rapid and significant decrease. This development can create potential negative pressure on the price of crypto currency. In the low liquidity environment, the absence of sufficient buyers may lead to sales orders to the price down. Swissblock emphasizes that the current situation is worrying, while Bitcoin’s long -term rise structure is not yet broken. Bitcoin was traded for $ 101,833 at the time of analysis.
Effects of Liquidity decrease on chain on Bitcoin
Liquidity over the chain is the main element that allows Bitcoin to be easily taken and sold without causing large price fluctuations. Swissblock draws attention to the sudden decrease in this liquidity in social media shares. The company interprets the low levels of the remaining liquidity as a worrying situation alone. A decrease in the general activity in the Bitcoin network is also observed.
This low liquidity environment can increase volatility in Bitcoin price movements in the short term. If there is not enough buyers, sales orders can create a downward pressure on the price. Swissblock, although the general market tendency returns in favor of Bitcoin, the chain liquidity should be increased again for a sustainable rise. If there is no recovery in liquidity indicators, it may be difficult for Bitcoin to achieve a permanent rise acceleration.
Short -term risks with long -term trend
The Swissblock report underlines that Bitcoin’s long -term rise trend is not broken for the time being. The company interprets the fact that the risk signs remain at zero level as an indication that the general market structure is still positive. “All conditions are not negative,” analysts emphasize that long -term formation is preserved despite the recent loss of liquidity. Keeping risk signals at existing levels indicates that the general rise structure continues.
However, low liquidity conditions in the short term are at risk of increasing price volatility. When price movements are more attached to the dynamics of the chain, low activity can make Bitcoin more vulnerable to downward fluctuations. Experts say that the existing low liquidity has not yet completely shaken the long -term positive market expectation. Nevertheless, it is recommended that investors closely follow the liquidity dynamics in the market and be prepared for possible short -term fluctuations. If there is no recovery in liquidity in the coming period, the probability of fluctuation will increase.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
