The post Bitcoin – All about the liquidity signals that are hinting at a price recovery in 2026 appeared on BitcoinEthereumNews.com.

Bitcoin has continued to trend lower on the back of selling pressure building across the market. In fact, the world’s largest cryptocurrency is now well off its all-time high of close to $126k, with BTC valued at $87.4k at press time. However, selling pressure might be fading now. Structural patterns point to exhaustion, while improving liquidity conditions suggest capital could begin to re-enter the market. Such a shift would also strengthen the broader recovery outlook. Bitcoin hits structural exhaustion Bitcoin’s [BTC] recent decline has been driven by several converging bearish factors that struck the market in succession. The downturn began on 29 October, following a major liquidation cascade that forced approximately $19 billion out of the market. This was reinforced by a hawkish Federal Open Market Committee outlook. It pushed institutional investors to reduce exposure, resulting in a record $903 million Bitcoin outflow. According to 10xResearch, this environment pushed investors towards assets with stronger near-term return potential. This likely explains the recent rallies in traditional safe-haven assets such as gold and silver, both of which hit record highs. Source: 10xResearch Despite this backdrop, however, market analysis now suggests Bitcoin may be approaching a bullish inflection point and could attempt a multi-week recovery. In fact, structural patterns at press time indicated that a breakout above the descending resistance trendline could trigger a renewed upside move. Will conditions support a rebound? There is a high probability that Bitcoin stages a rebound as the market approaches the new year. Consider this – Milk Road’s recent analysis compared one-year inflation swaps with the five-year forward breakeven five-year inflation swap and highlighted a widening divergence in long-term inflation expectations. According to the report, this divergence could turn constructive for Bitcoin, even though such setups are relatively rare. “Inflation is likely to cool through the first…

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Filed under: News - @ December 27, 2025 7:05 am