BITCOIN: THE LATEST FABLE OF THE WILD WEST

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bitcoin-usd/”>BITCOIN: THE LATEST FABLE OF THE WILD WEST

BITCOIN: THE LATEST FABLE OF THE WILD WEST
  • The price of Bitcoin has become as unpredictable as a Russian winter, hinting at a possible hike towards $105k
  • The realized cap growth and technical indicators have revealed crucial resistance and support zones, much like the twists and turns of a provincial road

Bitcoin [BTC] continues to navigate the treacherous waters of key resistance levels, with liquidity injections fueling speculation of a rally towards $105k. With BTC’s realized cap increasing and price action aligning with global money supply trends, traders are eyeing whether momentum can sustain a breakout or not.

The Liquidity Injections and BTC’s Price Surge: A Tale of Two Markets

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, much like the whispers of the wind through the wheat fields. And, the latest data suggested that a renewed uptrend could be underway, like a peasant’s oxen plowing the fields.

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A closer look at Bitcoin’s price movement, alongside the global M2 money supply [yellow line], revealed a strong correlation, like the threads of a tapestry woven by a skilled weaver.

Historically, when liquidity increases, BTC tends to follow suit, like a faithful dog following its master. In fact, 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, much like a spring rain reviving the parched earth.

The key takeaway here is that Bitcoin’s price has rebounded precisely at a point where global liquidity flashed a sharp recovery, like a hawk swooping down upon its prey. The cryptocurrency could benefit from additional capital inflows if this trend continues, providing the fuel needed for a rally towards $105k, like a blazing fire consuming the dry underbrush.

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However, resistance zones remain in place, like the jagged peaks of the Carpathian Mountains, and Bitcoin must clear several hurdles before such a breakout becomes a reality.

Bitcoin’s Realized Cap: A Beacon of Hope in the Wilderness

Another major factor supporting a bullish case for Bitcoin is its realized cap, which has continued to grow, like a lush forest sprouting from the earth.

Here, 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, like a village elder’s wise counsel.

According to Glassnode, BTC’s realized cap has risen steadily, like the rising sun over the horizon – A sign that capital is still entering the market, despite short-term price fluctuations, like a gentle stream flowing through the rocks.

The Technical Levels: A Maze of Twists and Turns

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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, like a formidable fortress guarding the entrance to the kingdom. Meanwhile, the 200-day MA at $96,392 represented a key barrier BTC must break to confirm a sustained rally, like a mighty river blocking the path to the promised land.

On the downside, BTC has found immediate support around the $80K-$81K range, making this a crucial zone for traders to monitor, like a sentinel guarding the gates of the city. A breakdown below this level could invalidate the bullish scenario, potentially leading to a retest of the $75k support, like a tempest sweeping across the plains.

Can Bitcoin Reach $105,000?

For the cryptocurrency to hit $105k, two major factors must align, like the celestial bodies converging in the night sky,

  • Sustained liquidity injections – If global M2 money supply keeps increasing, it could drive more capital into BTC, like a mighty wind blowing through the trees.
  • Breaking key resistance levels – BTC needs to reclaim $88k and $96k, with strong volume to confirm a bullish breakout, like a mighty oak tree shattering the chains of its past.

While the current setup looks promising, Bitcoin still faces hurdles before confirming a push to new highs, like the rugged terrain of the Carpathian Mountains waiting to be conquered. If liquidity conditions remain favorable, BTC’s uptrend could accelerate, like a chariot racing across the plains. Even so, traders should remain cautious of any sudden shifts in macroeconomic trends that could impact liquidity inflows, like a sudden storm cloud darkening the sky.

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2025-03-15 06:23