[Analysis] "Bitcoin·Ethereum supply imbalance deepens… further downside possible"

An analysis said that Bitcoin (BTC) prices could fall further due to liquidity stagnation.

Mignolet, a CryptoQuant contributor, said on the 18th (local time) via CryptoQuant, "The supply imbalance between Bitcoin and Ethereum (ETH) is deepening again," and "The current market situation is very similar to the period when Bitcoin traded at the upper $100,000 range."

Mignolet emphasized that "liquidity is stagnant." He noted, "Buy-side liquidity is rapidly being depleted, and the remaining liquidity is merely circulating within the market rather than flowing in from outside," and added, "Unless new capital inflows occur, it will be difficult to resolve the supply imbalance."

He also pointed out the possibility of further declines. Mignolet said, "Historically, such supply imbalances have only been adjusted through price declines," and "the same phenomenon occurred when Bitcoin traded in the upper $100,000 range, and the same pattern is forming again now."

He continued, "If new liquidity does not flow into the market, a short-term rebound or a long-term sideways phase may follow," and added, "However, such movements are likely to be rebounds without structural significance and are likely to lead to further declines afterward."