Altcoins Liquidity Index: Market Signals and Investor Psychology Cycle

The cryptocurrency market is not only a place for transactions, but also a stage for clear psychological cycles. The ‘Altcoins Liquidity Index - 1M’ chart reveals important signals for investors seeking to optimize their trading strategies. 🌟 Understanding Altcoins Liquidity Index: • The Altcoins Liquidity Index measures the liquidity and sentiment of money flow in the altcoin market. This is a powerful tool to identify market trends, from accumulation to explosive phases. • The chart shows the repetition of the psychological cycle of ‘Euphoria’ occurring every 230 days, often marking significant price peaks. 📈 Market forecast: • Highlight: The trend after each ‘Euphoria’ cycle is usually a strong price adjustment, followed by a recovery and accumulation phase. • The green arrow on the chart suggests new growth, which may bring a boom for altcoins in the coming year. 💡 How to take advantage?

1. Tracking cycle: • Euphoria peaks often signal short-term market peaks. Investors need to be cautious and consider taking profits when they see similar signals. • The 230-day period can be used to identify entry points or exit points for orders.
2. Technical analysis: • Combine indicators such as RSI, MACD, and Fibonacci Retracement to identify support and resistance. • Consider volume indicators to assess the strength of the money flow.
3. Risk management: • Maintain a reasonable risk/reward (R:R) ratio. • Set a Stop Loss to protect your account in case the market goes against your prediction.