Bulls vs Bears: Crypto Market Enters New Stage with Weekend Liquidity in Focus
The battle between bulls and bears in the cryptocurrency market has entered a new stage, as July comes to an end. While global stock markets mostly rose, the crypto market saw one of its largest corrections since the current rebound. The capital seesaw effect is at play, with funds temporarily flowing into traditional equity markets, making the crypto market a target for profit-taking in the short term.
However, this rotation of capital does not mean the long-term trend has changed, but rather a rebalancing during the upward move. According to recent market patterns, weekend liquidity is generally limited, with lower participation from large institutions, so volatility is expected to be more subdued than on weekdays.
But there's another possibility that can't be ignored: for the past six consecutive Saturdays, the market has seen slow recovery or even a unilateral rebound driven by low liquidity. BTC and ETH, in particular, are facing short-term bearish trends, with key support levels broken and oversold zones reached.