BITCOIN GOES SIDEWAYS "UNCOMFORTABLE": ACCUMULATE BEFORE THE STORM OR SIGN OF WEAKNESS? 🤔

According to BlockBeats, CryptoQuant analyst Axel Adler Jr states: The Bitcoin market ($BTC) this week is in a "CONSOLIDATION" phase.

CURRENT MARKET PICTURE:

Price: Fluctuating within a narrow range of $110,000 - $112,000, hovering near the "maximum pain point" (max pain).

Derivatives: The bears have LOST THEIR DOMINANT POSITION, but the growth momentum remains WEAK.

On-chain: On-chain activity has DECREASED, but there is a NET OUTFLOW from exchanges.

Macro: Falling bond yields and a weak U.S. labor market are SUPPORTING risky assets.

Overall, the market is showing a slight UPWARD trend but CAUTIOUS.

OVERALL ANALYSIS:

THE TUG-OF-WAR BETWEEN CONTRADICTORY SIGNALS: This is an extremely "uncomfortable" phase for traders.

Positive signals: Net BTC outflows from exchanges, macro factors are temporarily supportive.

Negative signals: Weak growth momentum, declining on-chain activity.

A consolidation phase like this is often a "spring compression" phase, ACCUMULATING energy before a LARGE VOLATILITY. The next direction will be decided when one of the two sides breaks the balance.

During this phase, the market will be EXTREMELY SENSITIVE to upcoming catalysts, especially INFLATION DATA and THE EXPIRATION OF OPTIONS CONTRACTS.

How does the community feel about this "sideways" phase? Is this an opportunity to accumulate or a sign to be cautious?

Note: This information is for reference only and is not investment advice. You should do your own research and make the most informed decisions.

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