Bitcoin (BTC) continues to navigate key resistance levels, with liquidity injections fueling speculation of a rally toward $105K. As BTC’s realized cap grows and price action aligns with global money supply trends, traders are watching whether momentum can sustain a breakout.
Liquidity Injections and BTC’s Price Surge
Bitcoin’s price has mirrored global liquidity trends, with recent injections hinting at a potential surge to $105K. The correlation between BTC’s price and the global M2 money supply has historically signaled strong bullish moves. Current data suggests a renewed uptrend may be underway.
Key observations:
- Global M2 money supply (yellow line) and BTC price show a strong correlation.
- Liquidity increases often precede Bitcoin rallies.
- BTC recently rebounded from $75K alongside a sharp recovery in global liquidity.
👉 Why liquidity matters for Bitcoin’s price
If liquidity continues expanding, additional capital inflows could fuel a rally toward $105K. However, Bitcoin must first overcome critical resistance zones.
Bitcoin’s Realized Cap Signals Market Confidence
The realized cap—a metric reflecting the total value of BTC at their last transaction price—has steadily risen, indicating sustained capital inflow despite short-term volatility. This growth underscores investor confidence and network strength, providing a foundation for potential breakouts.
Key Technical Levels to Watch
Resistance Levels:
- 50-day MA: $88,926 (immediate resistance)
- 200-day MA: $96,392 (critical breakout level)
Support Zones:
- $80K–$81K: Immediate support; a breakdown below could invalidate bullish momentum.
- $75K: Long-term support level.
Can Bitcoin Reach $105,000?
Two conditions must align for BTC to hit $105K:
- Sustained liquidity injections: Continued growth in global M2 money supply.
- Breaking resistance: BTC must reclaim $88K and $96K with strong volume.
While the setup is promising, macroeconomic shifts could impact liquidity flows. Traders should monitor these factors closely.
FAQ
Q: How does global liquidity affect Bitcoin’s price?
A: Increased liquidity (e.g., rising M2 supply) often drives capital into BTC, boosting demand and price.
Q: What is Bitcoin’s realized cap?
A: It measures the total value of all BTC based on their last transaction price, reflecting investor sentiment and network health.
Q: What are the key resistance levels for BTC?
A: $88,926 (50-day MA) and $96,392 (200-day MA) are critical hurdles for a sustained rally.