Bitcoin (BTC) Market May Reverse as Global Liquidity Bottoms

Reports suggest that the global liquidity has bottomed. This indicates that the liquidity is likely to start increasing soon.

Bitcoin (BTC) has experienced a slight uptick in the past 24 hours, with the cryptocurrency currently trading at around $84,185.01. This follows a period of decline that saw the Bitcoin market stand at least 22.94% below the all-time peak and around 1.84% below the closing price of March 1.

Meanwhile, the US share market has also seen a decline of 6% this month, which experts attribute to the sharp drop in global liquidity. However, reports suggest that the global liquidity has touched its bottom, which could herald a potential reversal for Bitcoin.

Correlation Between Bitcoin and Global Liquidity

Experts have noted a 80% correction between Bitcoin and global liquidity, which is a very high correlation. This suggests that there is an 80% probability that the price of Bitcoin will go up if the global liquidity improves.

"Correlation of 80% is very high. This means that there is an 80% probability that the price of #Bitcoin is going to reverse if the global liquidity improves.

Global liquidity has bottomed. The correlation between Bitcoin and global liquidity is 80%. It’s highly likely Bitcoin is going to reverse!"

For instance, if an asset’s price is going up and an indicator is also showing strength, then it increases the probability of the asset’s price continuing to rise.

Key Indicators to Watch For a Bitcoin Price Rally

Here are the basic indicators that one should watch:

Resistance Level

Currently, the Bitcoin price stands at $84,185.01. Analysts point to resistance around $87K, $90K, $92,500, $94K, $95K and even $100K. When BTC breaks through these levels with strong trading volume, it suggests that buyers are overcoming selling pressure.

Bitcoin Exchanges’ Net Flow

When investors move their Bitcoin away from exchanges, it often suggests they are confident about the long term potential of the asset. Therefore, it is important to monitor the flow of Bitcoin onto and off cryptocurrency exchanges.

According to Coinglass, the total exchange balance of BTC sits at 2,197,123.37. Its 24-hour change is +16629.17 and its 7-day change is -7184.75. Yesterday, the Bitcoin Wallet net flow was +3.81K BTC.

Technical Indicators

A golden cross, where a shorter-term moving average crosses above a longer-term one is often seen as a bullish signal. The SMA-50 of BTC remains at $88,254.66, and the SMA-200 of the asset stands at $86,180.45.

BTC’s RSI remains at 46.57. If the RSI moves consistently above the neutral 50 level and heads towards overbought territory (above 70), it can indicate increasing buying momentum.

In conclusion, with global liquidity showing signs of recovery and Bitcoin exhibiting strong technical strength, the cryptocurrency could be poised for an upward move. However, it's crucial to exercise caution and invest in cryptocurrencies only after conducting thorough research and considering your own risk tolerance. Always remember to invest wisely and responsibly.

"Don't invest in anything you don't understand. If you're not willing to lose money, don't invest it. Invest in what you know and what you're passionate about. And most importantly, have fun!"

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Read More: Bitcoin Price May See an Upward Move After a Slight Increase Today

Key Levels to Watch in Bitcoin

As Bitcoin continues to recover from recent lows, traders are keeping an eye on key resistance levels that could impact the cryptocurrency's near-term trends.

"Bitcoin is currently facing resistance at the 38.2% Fibonacci retracement level of the recent decline from the all-time high to the low," said Ben Armstrong, host of the crypto YouTube channel Armstrong's Money. "If it can break through this level, it could continue to rise to the next resistance level at the 50% Fibonacci retracement level, which is around $92,500."

Once Bitcoin clears the 50% Fib, it might encounter resistance at the 61.8% Fib, which is about $95K. A breach of this barrier might set the stage for a rally towards the 100 Fib, potentially placing the cryptocurrency at the $100K mark.

"Bitcoin has already bounced from a key support level at the 23.6% Fib, and it is also facing resistance at the SMA-50, which adds to the belief that a move to