The crypto market is showing signs of potential recovery, with analysts predicting a rebound driven by high short positions and oversold conditions. Despite this optimism, key factors such as constrained liquidity due to fiscal policies pose challenges for sustained growth. 🎤 CryptoQuant analyst Axel highlights the current market landscape as ripe for a comeback, fueled by substantial short-selling activity and persistent overselling following the U.S. government’s impact on liquidity levels. 📈 This situation underscores the need for historical consolidation phases before achieving genuine recovery, according to analysts like Daan Crypto Trades who emphasize cautious market reactions with long-term growth concerns still unaddressed.