- Is China waiting for the US FED’s interest rate decision before pumping up the liquidity machine?
- Liquidity to fuel market rallies for BTC and altcoins
China is poised to inject significant liquidity into its economy, which could boost Bitcoin [BTC] and other cryptocurrencies such as cited by X user and market analyst Quinten.
Historical patterns show that the People’s Bank of China often increases liquidity in August, with previous injections occurring on August 11 in 2020, August 31 in 2021 and 2022, and August 28 in 2023.
Although there was a brief liquidity boost in June, there has been little activity since then.
China could wait for the Federal Reserve to cut rates, possibly on September 18, before stepping up its liquidity efforts. This move could increase global liquidity.
Source: Quinten about X
Historic BTC consolidation after the in-game halving
The crypto market remains bullish despite recent dips, proving those who predicted a bear market wrong.
Bitcoin is currently in the typical post-halving consolidation phase, which often precedes a significant bull run. Combined with China’s expected liquidity injection, the market is primed for a potential explosion.
Source: Bitcoin Magazine PRO
Examining BTC addresses on IntoTheBlock shows little movement, indicating accumulation.
This phase usually precedes significant market fluctuations because it reflects a period when traders and investors are placing orders.
The current accumulation indicates a potential increase in BTC and other cryptocurrency prices, driven by the expected increase in liquidity.
Source: IntoTheBlock
BTC’s double bottom is below the daily 200 EMA
The BTC price chart shows a double bottom below the daily 200 EMA, a pattern that often indicates a market rally.
This is reinforced by a retest of the lower Gaussian channel band, which coincides with the daily 200 EMA.
These strong indicators suggest that BTC will soon start to rise, especially with the added boost from Chinese liquidity injections.
Source: TradingView
Huge weekly candle for the entire market
Moreover, the expected liquidity boost has created a strong bullish signal with a large weekly candle and a significant rejection.
This signals a potential rise in Bitcoin, Ethereum and altcoins in the coming weeks. The longer-term support levels also show strong buying interest, reinforcing expectations of a market rise.
Source: TradingView