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The cryptocurrency market is likely to experience frustrating movements in the near future. The market has cooled down significantly. It has shown a pattern of extended sideways movement and adjustments, as per CryptoQuant data. Since March, the crypto market, especially Bitcoin, has attempted to push upwards on five separate occasions. However, it has failed each time to maintain a sustained upward trend.
Cryptocurrency market expected to show frustrating movements for the time being
— CryptoQuant.com (@cryptoquant_com) September 4, 2024
“Due to the expected US base rate cut on September 18, a short-term rebound due to positive market sentiment can be expected, but if the market atmosphere is not significantly reversed, it is highly… pic.twitter.com/DKPz7trDAn
Dead Cross Signal Indicates Continued Pressure on Crypto Market
One of the signals pointing to the fact that the market is currently experiencing some difficulties is the short-term/long-term SOPR moving average, which has recently shown a Dead Cross. This technical signal suggests that the market might be under further pressure in the future.
Moving forward, the possibility of a short-term rally might occur if the anticipated US base rate cut occurs as planned on September 18. Alternatively, this event might give the market a temporary boost in sentiment for a while. However, even if the rate cut translates into an improvement for the upcoming quarter, it will arguably fail to dramatically alter the trend in the long run. If the overall outside market sentiment does not significantly improve in the future, it is quite possible that the cryptocurrency market will face more disappointing movements in 2024.
Investors Should Prepare for Gradual Crypto Market Movement Until Late 2025
The current state may be very unencouraging for the investors but there is need for one to hold their horses. Hence, it seems that the stronger rebound might only take place in 2025. There might be a prolonged period before the market reaches any new highs, and the volatility is likely to remain low for quite some time since it will depend on different economic indicators and any changes in the rules and regulations of the market.
Lastly, there could be short-term positivity as the next base rate cut approaches. However, CryptoQuant data revealed that the cryptocurrency market is anticipated to continue struggling. Investors should prepare more for a gradual and slow market movement and should not expect higher rates until the later part of 2025. Based on the current performance, it will be easier to predict the future performance of the market when considering external economic factors and regulatory changes in the following months.