Bitcoin's Price Surges 37% as Global Liquidity Increases
1min read Bitcoin's price movement has been closely tied to global liquidity trends, with recent injections suggesting a potential rally towards $105,000. The correlation between Bitcoin's price and the global M2 money supply has historically indicated significant price movements. The latest data shows that an increase in liquidity has coincided with Bitcoin's price rebound from its recent lows near $75,000. This trend suggests that Bitcoin could benefit from additional capital inflows, potentially fueling a rally towards $105,000. However, several resistance zones remain, and Bitcoin must clear these hurdles before such a breakout becomes a reality.
Another factor supporting a bullish case for Bitcoin is its realized cap, which has continued to grow. The realized cap represents the total value of all Bitcoin coins at their last transaction price and serves as a proxy for investor sentiment and network strength. The steady rise in Bitcoin's realized cap indicates that capital is still entering the market despite short-term price fluctuations. If this trend holds, it could provide a solid foundation for Bitcoin to push past key resistance levels.
Technical analysis reveals that the 50-day moving average (MA) is currently at $88,926, acting as the first major resistance level. The 200-day MA at $96,392 represents a key barrier that Bitcoin must break to confirm a sustained rally. On the downside, immediate support is found around the $80,000-$81,000 range, making this a crucial zone for traders to monitor. A breakdown below this level could invalidate the bullish scenario, potentially leading to a retest of the $75,000 support.
For Bitcoin to reach $105,000, two major factors must align: sustained liquidity injections and breaking key resistance levels. If the global M2 money supply continues to increase, it could drive more capital into Bitcoin. Additionally, Bitcoin needs to reclaim the $88,000 and $96,000 levels with strong volume to confirm a bullish breakout. While the current setup looks promising, Bitcoin still faces hurdles before confirming a push to new highs. Traders should remain cautious of any sudden shifts in macroeconomic trends that could impact liquidity inflows.
