Will Bitcoin Reach $105K? The Potential Impact of Liquidity Injections on Bullish Surge
Exploring the Potential Influence of Global Liquidity on Bitcoin's Ascension to a New High
Key Points
- Bitcoin’s price is showing correlation with global liquidity trends, hinting at a possible hike towards $105,000.
- The cryptocurrency’s realized cap growth and technical indicators reveal crucial resistance and support zones.
Bitcoin [BTC] is currently navigating through key resistance levels, with liquidity injections fuelling speculation of a rally towards $105k. The realized cap of BTC is increasing and price action is aligning with global money supply trends, leading traders to speculate whether momentum can sustain a breakout or not.
Liquidity Injections and BTC’s Price Surge
Bitcoin has been closely mirroring global liquidity trends, with recent injections fuelling speculation of a potential hike to $105k. The correlation between BTC’s price and global M2 money supply has historically signalled strong moves. The latest data suggests that a renewed uptrend could be underway.
Historically, when liquidity increases, BTC tends to follow suit. According to the latest data, a fresh uptick in liquidity has coincided with a bounce in Bitcoin’s price from its recent lows near $75k.
Bitcoin’s price has rebounded precisely at a point where global liquidity flashed a sharp recovery. If this trend continues, the cryptocurrency could benefit from additional capital inflows. However, resistance zones remain in place, and Bitcoin must clear several hurdles before a breakout becomes a reality.
Bitcoin’s Realized Cap Signals Market Confidence
Another major 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 that capital is still entering the market, despite short-term price fluctuations. If this trend holds, it could provide 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] sat at $88,926 at press time, acting as the first major resistance level. Meanwhile, the 200-day MA at $96,392 represented a key barrier BTC must break to confirm a sustained rally.
On the downside, BTC has found immediate support around the $80K-$81K range, making this a crucial zone for traders to monitor. A breakdown below this level could invalidate the bullish scenario, potentially leading to a retest of the $75k support.
For the cryptocurrency to hit $105k, two major factors must align: sustained liquidity injections and breaking key resistance levels. While the current setup looks promising, Bitcoin still faces hurdles before confirming a push to new highs. If liquidity conditions remain favorable, BTC’s uptrend could accelerate. However, traders should remain cautious of any sudden shifts in macroeconomic trends that could impact liquidity inflows.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Skipped Bitcoin Cash? Qubetics ($TICS) Could Be Your Redemption Ticket – Top Cryptos for Significant Returns
The crypto market has been on fire lately. With the spotlight shifting to new and innovative blockchain projects, everyone’s eyes are on which cryptos will make waves this year.Bitcoin Cash: A Missed Opportunity for Significant ReturnsQubetics: Revolutionizing Digital Finance with Real-World Asset TokenizationConclusion: Time to Act on Qubetics
BTC Short Position by ETH Whale Nears $332M
A crypto whale boosts their BTC short position to $332M, facing losses and potential short squeeze risk.Whale Boosts BTC Short Position Amid Market VolatilityRisk of Liquidation LoomsStrategic Buy Orders Placed

Pakistan Launches Crypto Council Led by Finance Minister
Pakistan forms Crypto Council to boost blockchain and crypto adoption, chaired by Finance Minister Muhammad Aurangzeb.Pakistan Takes a Bold Step Toward Crypto AdoptionFinance Minister to Lead the InitiativeFocus on Innovation and Financial Inclusion

Trump Crypto Project WLFI Buys AVAX, MNT for $4M
Trump-linked crypto project WLFI buys $4M worth of AVAX and MNT, total investment hits $340M with $115M in unrealized losses.WLFI Adds AVAX and MNT to Crypto Portfolio$340M Invested Across 11 TokensHeavy Losses Despite Market Activity

Trending news
MoreCrypto prices
More








