Bitcoin surges as global liquidity hits record high
Bitcoin continues to show strength, driven by rising global liquidity and positive macroeconomic conditions. Global liquidity has increased by 0.92% to USD 132.8 trillion, marking the highest level since early 2022. This development could lead to higher Bitcoin prices, as the cryptocurrency is considered a hedge against monetary inflation. In particular, the last months of the year could be bullish for the crypto market.
Global Liquidity at Peak: What Does This Mean for Bitcoin?
Global liquidity has recently reached 2022 levels, which could have a positive impact on Bitcoin. With a 0.92% increase to USD 132.8 trillion, liquidity is at its highest level since early 2022. This rise is supported by improved collateral values and measures by the Chinese central bank. Although the U.S. Federal Reserve has not yet implemented any stimuli, markets are optimistic that future rate cuts are on the horizon. These factors suggest that Bitcoin could reach higher prices in the coming months.
Key Price Levels and Fibonacci Levels
Bitcoin recently tested the critical 0.786 Fibonacci retracement level and recovered from it. The current price is around USD 66,000. This level has proven to be a reliable indicator for upward and downward movements this year. As long as global liquidity continues to rise, Bitcoin is expected to keep climbing. The next key target is above USD 66,700. Bitcoin benefits from rising liquidity and remains a preferred hedge against inflation, similar to gold.
September: A Historic Month for Bitcoin
September ended with a gain of 7.35%, making it the best September in Bitcoin’s history. Despite expectations of a decline, Bitcoin managed to weather corrections well and continued its upward trend. Artificial intelligence models from Spot On Chain had predicted a bullish month, indicating a 69% chance of a new all-time high. Additionally, there is a 54% probability that Bitcoin will reach the USD 100,000 mark by the end of the year.
Macroeconomic Factors: Rate Cuts on the Horizon?
Macroeconomic conditions could also contribute to a positive environment for Bitcoin. There are signs that the U.S. Federal Reserve and the European Central Bank (ECB) might loosen their interest rate policies. The Fed has shifted its focus from fighting inflation to employment. Currently, there is a 42% chance of a 50-basis-point rate cut in November. If the U.S. jobs report exceeds expectations, this probability could increase. Rate cuts generally create a more favorable environment for risk assets like Bitcoin.
Liquidity Clusters: Key Levels to Watch
Key liquidity clusters for Bitcoin are emerging as the price continues to rise. Recent pullbacks towards USD 63,225 have allowed Bitcoin to gather liquidity and prepare for the next move up. The next important clusters are between USD 66,700 and USD 66,750, while lower clusters around USD 62,050 to USD 62,120 provide support. These levels are crucial for monitoring Bitcoin’s price action and anticipating possible breakouts to higher prices.
Our Assessment
Bitcoin is entering a promising phase, supported by rising global liquidity and positive macroeconomic developments. The technical patterns indicate a continuation of the upward trend, especially if liquidity continues to increase. Rate cuts could provide additional upside potential. However, investors should keep an eye on key price levels to identify potential pullbacks or breakouts early. The coming months could be pivotal for Bitcoin’s price trajectory.
Sources
– Alpha Extract
– TradingView
– Coinglass
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $97,271.00 |
| 24h % | -1.09 % |
| 7d % | -4.40 % |
| 30d % | 3.37 % |
| 60d % | 44.64 % |
| 1y % | 121.35 % |
| Market Cap | $1,921,300,316,286.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
Advertising transparency