Bitcoin price has been struggling to surpass the $30,000 mark in recent days. BTC price fell yesterday after the news with FUD content about the crypto money exchange Binance by Semafor and saw below $ 29,000.
Bitcoin Can't Exceed $30,000
According to a new report by CryptoQuant, a cryptocurrency analysis firm, Ethereum, one of the main reasons for this recession is low liquidity on exchanges, which are key players in the market.
CryptoQuant examined three factors that indicate the level of liquidity on exchanges: the average amount of bitcoins coming out of the spot market, the average amount of stablecoins entering the exchanges, and the Bitcoin trading volume on the exchanges.
These factors reflect supply and demand dynamics and the market sentiment of stockbrokers.
The report revealed that all three factors decreased simultaneously in July, meaning there is less liquidity for price growth and bullish prospects.
The report suggested that this may cause temporary or medium-term fluctuations in the market and it is important to monitor the liquidity trend in the coming days.
CryptoQuant has found that the price of Bitcoin is heavily influenced by the behavior of exchange representatives, and liquidity conditions are crucial in determining the direction of the market.
*Not investment advice.