Bitcoin Price Trends Towards $105k

Bitcoin’s price is correlating with liquidity trends, hinting at a possible hike towards $105k. Realized cap growth and technical indicators revealed crucial resistance and support zones.

Liquidity Injections and BTC’s Price Surge

Bitcoin has been closely mirroring global liquidity trends, with recent injections fueling speculation of a potential hike to $105k. The correlation between BTC’s price and global M2 money supply has historically signaled strong moves. The latest data suggests that a renewed uptrend could be underway.

A closer look at Bitcoin’s price movement alongside the global M2 money supply shows a strong correlation. Historically, when liquidity increases, BTC tends to follow. Recently, a fresh uptick in liquidity coincided with Bitcoin’s price bounce from recent lows near $75k.

The key takeaway is that Bitcoin’s price rebounded when global liquidity indicated a sharp recovery. The cryptocurrency could benefit from additional capital inflows if this trend continues, which may provide the fuel for a rally towards $105k. However, resistance zones remain, and Bitcoin must clear several hurdles before such a breakout.

Bitcoin’s Realized Cap Signals Market Confidence

Another factor supporting a bullish case for Bitcoin is its realized cap, which has continued to grow. The realized cap represents the total value of all BTC coins at their last transaction price, often serving as a proxy for investor sentiment and network strength.

According to Glassnode, BTC’s realized cap has risen steadily, indicating capital is still entering the market despite short-term price fluctuations. If this trend holds, it may serve as a solid foundation for BTC to push past key resistance levels.

Key Technical Levels to Watch

Analyzing Bitcoin’s price action, the 50-day moving average (MA) is at $88,926, serving as the first major resistance level. Meanwhile, the 200-day MA at $96,392 represents a key barrier BTC must break to confirm a sustained rally.

On the downside, BTC has immediate support around the $80K-$81K range, making this a crucial zone for traders. A breakdown below this level could invalidate the bullish scenario, possibly leading to a retest of the $75k support.

Can Bitcoin Reach $105,000?

To hit $105k, two major factors must align:

• Sustained liquidity injections: If global M2 money supply keeps increasing, it could drive more capital into BTC.
• Breaking key resistance levels: BTC needs to reclaim $88k and $96k, with strong volume to confirm a bullish breakout.

While the current setup looks promising, Bitcoin still faces hurdles before confirming a push to new highs. If liquidity conditions remain favorable, BTC’s uptrend could accelerate. Traders should remain cautious of sudden shifts in macroeconomic trends that could impact liquidity inflows.