- According to recent data, a global liquidity cycle could lead to improved BTC prices.
- Despite Bitcoin showing bullish signs, traders remain bearish on BTC.
From Bitcoin [BTC] rising prices have led to huge amounts of speculation within the crypto community. While some traders are skeptical about rising BTC prices, some data suggests more positivity is on the way.
Read the Bitcoin price forecast for 2023-2024
According to Delphi Digital, the 75% spike Bitcoin has seen in recent months could indicate that global markets are entering a new liquidity cycle.
A new global liquidity cycle refers to a period when there is a significant increase in the availability of money and credit in the global financial system.
This may be due to factors such as central bank policies, government stimulus programs and increased investor confidence.
If the market enters a new global liquidity cycle, it could potentially have a positive impact on BTC’s value. This is because increased liquidity and credit availability could lead to higher investment activity and asset prices, which could boost demand for BTC.
Source: Delphi Digital
Taking things positively
Another positive indicator for BTC is the MVRV ratio. According to data from CryptoQuant, there is a chance that BTC could participate in another bull run.
In January 2023, the MVRV ratio for Bitcoin broke the 1.5 level, signaling the start of a bull market. The MVRV ratio has fluctuated between 1.55 and 1.45 at the time of writing, with major investors watching closely to buy Bitcoins at a discount during dips.
The analysis also showed that the 365DSMA should also be taken into account, with the MVRV ratio breaking through it to indicate a trend change.
If Bitcoin’s MVRV ratio breaks the 1.5 level again, it will likely shift to a range of values between 1.8 and 2, i.e. if BTC price reaches 30K.
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Source: CryptoQuant
Bears are clawing their way in
Despite all these bullish signals, traders remained cynical about BTC’s growth. Based on data from TheBlock, the Put to Call ratio for Bitcoin has increased significantly in recent months.
This suggested that a large number of traders have taken positions betting on a possible future fall in BTC’s market price.
Source: The Block