The cryptocurrency market continues to grow strongly with a capitalization of $3.8 trillion, marking an increase of 3.22% compared to before.
Trading volume surged to 87.37%, exceeding $210 billion, indicating excitement ahead of the U.S. CPI data expected to be released tomorrow, impacting market trends.
MAIN CONTENT
The prices of Bitcoin and Ethereum have both surged significantly over the past week.
U.S. CPI data will be the trigger for cryptocurrency market volatility.
The risk of a short-term correction exists due to declining Stablecoin liquidity and excessive leverage in Altcoins.
U.S. CPI Data: The trigger for market volatility?
The U.S. CPI data for July, expected to be released on July 15, could be a turning point that increases volatility. According to forecasts, the CPI index is expected to rise to 2.6% from the previous 2.4%.
If the data is higher than expected, the market may feel withdrawal pressure, leading to strong volatility in both cryptocurrencies and stocks. Conversely, positive CPI results will support continued momentum.
Will the growth trend continue?
Market indicators still show that the upward trend is sustainably maintained. The funding rate of Bitcoin and Ethereum remains low at 0.0105% and 0.0107%, respectively, reflecting tightly controlled leverage pressure, minimizing the risk of sudden corrections.
Bitcoin exceeding the threshold of $106,500 has triggered a rapid bullish phase, currently in a strong price expansion.
"Bitcoin has established a significant technical turning point after surpassing multiple liquidity zones, paving the way towards the price range of $125,000 to $130,000."
Michael Van de Poppe, Cryptocurrency Analyst, 14/07/2024
However, Altcoins are signaling warnings as the funding rate of some tokens on the Bitget exchange exceeds 0.26%-0.32%, indicating that excessive leverage could lead to a mass liquidation effect.
Are short-term correction signs appearing?
Bitcoin Index: Exchange Stablecoin Ratio increased from 5.5 to 5.95 within a week, indicating that Stablecoin liquidity on exchanges is not keeping up with the amount of Bitcoin deposited, reducing the immediate buying power of the market.
This facilitates short-term corrections, which are often a warning sign for cautious investors during liquidity transition periods.
Prominent expert opinions
Michael Van de Poppe believes that the possibility of Bitcoin reaching $125,000 – $130,000 is still very high, but deep declines to the price range of $105,000 – $110,000 could be viewed as a long-term accumulation buying opportunity.
At the same time, the RSI index on Bitcoin's 4-hour frame is near the overbought zone and showing signs of consolidation, warning that the short-term price structure is overheating, but there is not enough evidence to reverse immediately.
Conclusion
The long-term growth trend of the cryptocurrency market remains solid. However, in the next 48 hours, the likelihood of a short-term correction is high due to weakened Stablecoin liquidity, excessive leverage in Altcoins, and macroeconomic instability.
These price declines are expected to be temporary, potentially creating buying opportunities if CPI data and technical structure remain positively maintained.
Frequently Asked Questions
Will the growth momentum of the cryptocurrency market continue or will it correct?
The likelihood of a short-term correction in the next 48 hours is high, reflecting the decline in Stablecoin liquidity and excessive leverage in Altcoins.
What is the current price of Bitcoin?
The current price of Bitcoin is fluctuating around $122,526 with an intraday change of 3.67%.
What is the current state of the cryptocurrency market today?
The market maintains its upward momentum, with capitalization reaching $3.8 trillion as Bitcoin continuously sets new ATH peaks.
Source: https://tintucbitcoin.com/tien-dien-tu-tang-hay-giam/
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