Bitcoin may be holding strong above key psychological levels, but the market still lacks scale. capital inflow It was necessary to trigger a true full-fledged bull market. Although short-term movements can be caused by leverage and speculative positioning, true bull markets have historically required deep and consistent liquidity from financial institutions, funds, and new retail participants entering the market.
Liquidity gap hindering Bitcoin’s full expansion
Bitcoin still needs significant capital inflows to confirm the beginning of a true bull market, as current on-chain signals suggest momentum is still lacking. Joanne Wesson, founder and CEO of AlphaRactal, said: highlighted In X, the key indicator to watch is the realized market capitalization impulse, which is currently hovering just below the neutral 0 level, and this zone is currently acting as temporary resistance.
If the indicator is unable to recover and remain above 0, it indicates a decline in market inflows and increases the likelihood of: $BTC Prices may return to low levels again in the coming months. However, a decisive move above 0 suggests that new money is re-entering the network and could signal the beginning of a shorter, more compressed bear market. cycle We are heading for upward momentum.
For now, the indicator remains below this important benchmark, so Joan warns that it is still too early to declare the start of a new bull market. Despite market optimism, data suggests that the foundation for strong capital inflows needed to sustain economic growth has not fully materialized. upward Move.
Is Bitcoin in the early stages of a trend reversal?
Bitcoin is starting to show early signs of structural weakness after struggling to maintain strong bullish momentum in key resistance zones. The crypto trader known as CGT Trader noticed During a recent rally, $BTC Consecutive lows were rare, and even when a low was formed, it was unusual for it to occur only once before the next rise continued.
Now, price trends are starting to deviate from that pattern. $BTC is still trading sideways within a major resistance zone, and the price has already formed three consecutive lows without a new low.
CGT traders explained why the market structure is not completely bearish. $BTC No low price has been confirmed yet. However, the repeated inability to regain higher levels suggests that the uptrend may be losing strength as buyers struggle to sustain momentum.
The important levels to monitor are: $BTC Start printing lows along with highs on these lows. On the other hand, if its formation were to occur, it would indicate a clear change in market structure and potentially signal the end of the market. bull A trap and the beginning of a broader higher timeframe downtrend.
