The analytical company Swissblock reports on the current situation in the Bitcoin market and other cryptocurrencies. This article examines the factors influencing potential breakthroughs and market changes.
Technical Structure of Bitcoin
According to Swissblock, the technical structure of Bitcoin appears solid. However, the level of liquidity on-chain has not yet reached the necessary threshold to ensure a decisive breakout.
Capital Rotation into Ethereum and Altcoins
The report indicates that capital is already rotating into Ethereum and other altcoins, which typically outperform in the later stages of the market. The direction of the next wave of investor inflows will determine whether Bitcoin makes its move first or if altcoins take the lead.
Market Prospects and Short-Term Risks
Despite short-term volatility, Swissblock's Bitcoin Risk Index shows that the overall trend remains bullish. The model, which accounts for on-chain valuations and cost-basis metrics, continues to place Bitcoin in a low-risk environment. This suggests that temporary pullbacks should be seen as buying opportunities.
In conclusion, the current state of the Bitcoin and altcoin markets indicates that while the bullish trend remains intact, liquidity levels play a crucial role in future developments. Investors are advised to exercise caution amidst potential volatility.
