How the Global Liquidity Can Help Bitcoin
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Bitcoin The month of March has proven challenging for many markets, with the U.S. stock market suffering decline and Bitcoin losing around 3% of its price. This broader market weakness coincides with Bitcoin’s struggles, and many experts are pointing to a common culprit—global liquidity. With liquidity hitting rock bottom, could the cryptocurrency be gearing up for a reversal? Let’s break down the potential for a BTC rally and what to watch out for in the coming weeks. Many experts believe that Bitcoin’s price and global liquidity are closely connected, with an 80% correlation between the two. This means that when global liquidity improves, Bitcoin is likely to follow suit. Since the liquidity in the market has reportedly hit its lowest point, it raises the possibility that BTC price could soon recover. The global liquidity slump, driven by several macroeconomic factors, has had a significant impact on Bitcoin’s performance. With liquidity levels now reportedly at their lowest, a reversal could be imminent if liquidity begins to rise once again. This presents a strong case for Bitcoin’s potential rebound. Key Indicators to Watch for Bitcoin’s Potential Rally While global liquidity may provide the foundation for a price rally, there are several key indicators that could signal when Bitcoin is about to break out. Resistance Levels Bitcoin is currently trading at around $84,185.01. However, several price levels need to be broken for the biggest cryptocurrency to regain upward momentum. Analysts are particularly focused on resistance points at $87K, $90K, $92.5K, $94K, and $95K. If Bitcoin can break through these resistance levels with strong volume, it would suggest that buyers are overwhelming the sellers, paving the way for higher prices. These resistance levels are crucial for investors to watch closely. A solid breakout past these points could trigger a more significant rally for Bitcoin.…
Filed under: News - @ April 1, 2025 12:22 pm