Low Liquidity Drives Increased Volatility in the Crypto Market | by Secure Digital Markets | Coinmonks | May, 2023
The probability of a 25bps hike on June 14th increased from 10% last week to 20% this morning.
NASDAQ recently broke above yearly highs, indicating bullish momentum. A breakdown below its 50-day MA near 13,000, usually would indicate a bearish reversal pattern.
Bitcoin is still trading in a low liquidity environment which translates to higher volatility. Since January/February, we’ve noticed an uptick in intraday volatility for BTC/USD at 10min intervals. The market is facing a ton of volatility due to the lack of liquidity.
ETH/BTC is currently pulling back from a level that may act as resistance in the short-term. As long as this ratio is capped by this declining trend line, we should expect ETH to underperform BTC.
LTC is set to undergo a Halvening event in the next 70 days. Historically, Litecoin’s past Halvenings have seen a peak in price around 50 days prior to the event. Failing to observe a substantial price surge suggests a lack of interest in preserving the network’s security.
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