After a strong rise and fall, the Bitcoin price is consolidating above $115,000, and it appears to have landed in a decisive phase. Regardless of this, the market participants continue to remain optimistic as a bigger force is about to drive the BTC price rally. The global liquidity, as measured by M2, which represents the amount of money circulating through the world’s financial system, has reached a significant range where a bearish deviation could harm the BTC price rally.
Right now, that liquidity is stuck under a downward resistance line, showing that money supply growth is limited. Bitcoin is reacting similarly, trading sideways and waiting for a clear signal. If global liquidity breaks higher, it could fuel Bitcoin’s next big rally toward six figures. But if liquidity gets rejected again, Bitcoin may remain stuck in a long period of consolidation.
When it comes to Bitcoin, liquidity is often the invisible hand guiding every major move. The M2 money supply, which measures the amount of cash, savings, and near-money assets in circulation, has shown a direct relationship with Bitcoin’s price over the years.
Whenever liquidity expands, risk assets thrive. Investors with more capital tend to move beyond traditional markets and seek higher returns in assets like Bitcoin. On the other hand, when liquidity contracts due to tighter central bank policies, Bitcoin usually struggles as speculative capital dries up.
The message is clear: Bitcoin’s biggest rallies and deepest corrections have all lined up with shifts in global liquidity. This makes the current setup—with liquidity pressing against long-term resistance—a critical turning point not just for Bitcoin, but for the wider crypto market.
After the latest pullback, the BTC price not only faced a decent pullback from the highs but also dragged the levels below the pivotal support. This breakout from the pattern need not be considered as a bearish reversal but the beginning of a fresh bullish wave. The price still holds above an important support, and until the bulls defend this price zone, the possibility of a bullish reversal may remain high.
Bitcoin’s future isn’t only tied to its adoption curve but also to global capital conditions. With liquidity at a technical decision point, traders should focus less on short-term noise and more on the upcoming breakout. The M2 Liquidity Index could once again be the leading signal of Bitcoin’s next major cycle—whether bullish or bearish.
CleanCore Solutions Inc. (NYSE American: ZONE), an established cleaning and disinfection company, announced its acquisition…
Crypto asset holders are under siege today as on-chain sleuths reported the largest supply chain…
Altcoins are flashing strong signals of a potential breakout, setting the stage for what could…
The memecoin space was the best-performing crypto category today as Bitcoin (BTC) price surged to…
Shiba Inu price has been making a strong comeback over the last few days as…
JPMorgan’s trading desk has cautioned investors of a potential pullback after the expected Fed rate…