The market is on the verge of a correction: Analysis of liquidity inflow and signals for investors
Over the past 24 hours, the cryptocurrency market has recorded a significant capital inflow, which is traditionally one of the key bullish signals. Deposit volumes on major exchanges have increased by 12-15% compared to the average figures of last week. This indicates that institutional investors and large holders are actively building up their positions, preparing for a potential upward move.
Where is the money going?
The main flow of liquidity is directed towards first-tier altcoins — Ethereum (ETH) and Solana (SOL), as well as tokens in the DeFi sector. Meanwhile, Bitcoin, despite maintaining its dominance, shows more modest growth rates in balances. This could suggest a shift in investor focus towards more volatile assets in search of excess returns.
Interestingly, in parallel with this, there is a decrease in stablecoin volumes on exchanges by 8-10%. This is usually interpreted as preparation for purchases: investors are converting stablecoins into volatile assets. However, this trend also increases the risk of a sudden correction if major players decide to take profits.
My professional perspective
The current liquidity inflow is a classic precursor to a rally, but with a caveat. The market is overheated by short-term speculators, and without a healthy correction of 5-7%, we risk creating a "bubble" at local highs. I advise investors not to chase every candle but to wait for trend confirmation through volumes and support levels. Fundamentally, the market is strong, but emotions are currently in control.