Bitcoin (BTC) Market is Showing Signs of an Upward Shift, Aligning Liquidity Trends with the Broader Economic Cycle

With liquidity recently testing its breakout levels and set to rise further, experts are expecting a market turn. One expert said that the market is in a macro bull market across all asset classes, driven by global liquidity.

Cryptocurrency prices have been showing signs of an upward shift, aligning with global liquidity trends and the broader economic cycle. As major cryptocurrencies like Bitcoin and Ethereum continue to test key resistance levels, experts are expecting a market turn.

With liquidity recently testing its breakout levels and set to rise further, experts are expecting a market turn. One expert said that the market is in a macro bull market across all asset classes, driven by global liquidity.

Experts Point to the Bitcoin–Gold Correlation

However, experts are predicting a macro bull run, partly due to the strong correlation between Bitcoin and gold over the years. Analyst Daink shared a chart showing how Bitcoin has been tracking gold’s rising prices.

The chart shows two instances where Bitcoin mirrored this gold correlation. The analyst said that whenever gold experiences a surge that pushes Bitcoin’s price relatively lower, the digital gold tends to catch up. And based on the past trends, Daink believes Bitcoin will be soon matching gold’s latest price gains.

A key factor currently at play is the conclusion of the Federal Reserve’s tightening phase, which has been ongoing for several months. While this might not immediately lead to quantitative easing (often referred to as “money printing”), the deceleration of tightening is expected to enhance liquidity, providing a boost to assets like cryptocurrency.

What Makes This Crypto Market Different?

This time around, the crypto market is different due to several fundamental drivers. Unlike past downturns, which were caused by major platform collapses like FTX and Celsius and heavy regulation, the current crypto market has strong fundamentals. It benefits from a pro-crypto administration, positive shifts in regulatory frameworks, and increasing global interest in Bitcoin.

Currently, Bitcoin is testing a key trend line near $87k, with support levels holding strong. The immediate target is $90K, and there’s a potential rally already underway.

Should Bitcoin successfully break above this trend line and surpass the March high of $87,530, it could signal further upward momentum. Overall, the market sentiment appears bullish, with a focus on achieving higher price levels as current support remains robust.