BlockBeats News, October 24th, Matrixport released a market view stating, “The recent price trend of Bitcoin shows that the market is transitioning from a bull market phase to a consolidation phase. Although the macro environment still remains supportive, including the continuous easing policy of the Federal Reserve and a relatively stable overall liquidity environment, multiple technical and structural indicators indicate short-term exhaustion.”
Bitcoin has consecutively fallen below its 21-week moving average for two weeks, a line that has historically been seen as a reliable boundary between bull and bear phases. Meanwhile, on-chain liquidity growth has slowed, and realized market cap indicators show a weakening inflow of funds. The flash crash on October 11th highlighted these vulnerabilities—a forced liquidation of billions of dollars triggered a chain reaction in the market.
The size of open Bitcoin futures contracts has decreased, long-term holders have begun to take profits, and volatility remains low. The interaction of a strengthening US dollar, declining bond yields, and soft labor market data suggests that global growth momentum may be slowing, which could likely lead to range-bound volatility for risk assets, including Bitcoin, until market confidence is rebuilt.”
