Bitcoin [BTC] is displaying resilience as it rides on the wave of increasing global liquidity and favorable macroeconomic conditions.
With global liquidity up by 0.92% to $132.8 trillion, reaching levels not seen since early 2022, Bitcoin is poised to capitalize on this momentum.
The rise in collateral values and policy measures by China’s central bank have played a role in fostering this trend. While the Federal Reserve has yet to roll out any stimulus, market sentiments are buoyant about potential future rate adjustments.
These dynamics indicate the likelihood of Bitcoin experiencing an uptrend in prices, setting the stage for a bullish final quarter for the wider cryptocurrency market.
Bitcoin’s Current Price Performance and Important Levels
Bitcoin recently saw a rebound from the significant 0.786 Fibonacci retracement level, currently trading at $66,000. This level has consistently served as a crucial indicator influencing both upward and downward movements throughout the year.
The pattern of adhering to this level underscores Bitcoin’s correlation with global liquidity trends. As liquidity continues to climb, the anticipation is for Bitcoin to surge higher, with the next notable target set at new highs above $66,700.
The boost in global liquidity is expected to bode well for Bitcoin, given its status as a primary hedge against monetary inflation, alongside gold.
Analyzing the Impact of September’s Bullish Performance
September concluded with a notable 7.35% gain, marking it as the most successful September in BTC’s history. The bullish sentiment is underpinned by Bitcoin’s ability to weather recent corrections and maintain its upward trajectory.
Despite predictions of a downturn, AI models from Spot On Chain accurately forecasted a bullish month, stating,
“There’s a 69% probability of a new all-time high this month and a 54% chance of Bitcoin hitting $100K by year-end.”
The broader cryptocurrency market is also projected to reap the rewards of favorable macroeconomic conditions, particularly potential rate adjustments by the Federal Reserve and the European Central Bank.
The Fed has pivoted its attention from inflation to employment, with a 42% likelihood of a 50 basis point rate cut in November.
If forthcoming U.S. job data performs better than expected, this probability could see an upswing. Rate cuts generally signal a more conducive environment for risk assets like Bitcoin, propelling its value upwards.
Areas of Liquidity Concentration to Keep an Eye On
As Bitcoin’s price ascends, critical liquidity clusters are coming into focus. Recent pullbacks towards $63,225 enabled Bitcoin to tap into liquidity, paving the way for its next move.
The upper liquidity concentrations lie between $66,700 and $66,750, while lower clusters ranging from $62,050 to $62,120 offer a support framework.
As Bitcoin keeps on its upwards trajectory, monitoring these levels will be crucial, potentially leading to a breakthrough towards higher price levels.
With mounting global liquidity, promising technical patterns, and encouraging macroeconomic indicators, Bitcoin is primed for an imminent price surge.