Bitcoin [BTC]: Are global markets entering a liquidity cycle? If so, this is how BTC will react

• A global liquidity cycle could lead to improved BTC prices according to recent data.
• Despite Bitcoin showing bullish signs, traders continue to be bearish on BTC.

Bitcoins [BTC] Rising prices have led to massive amounts of speculation among the crypto community. Although some traders are skeptical of the rising BTC prices, some data suggests that more positivity is on the way.

Read Bitcoin Price Prediction 2023-2024

According to Delphi Digital, the 75% rise that Bitcoin has witnessed in recent months may indicate that the global markets are entering a new cycle of liquidity.

A new global liquidity cycle refers to a period where 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 policy, government stimulus programs and increased investor confidence.

If the market enters a new global liquidity cycle, it could potentially have a positive impact on the value of BTC. This is because increased liquidity and credit availability can lead to higher investment activity and asset prices, which can drive demand for BTC.

Source: Delphi Digital

Take things positively

Another positive indicator for BTC will be the MVRV ratio. According to data provided by CryptoQuant, there is a probability that BTC may enter another bull run.

In January 2023, the MVRV ratio for Bitcoin broke the 1.5 level, indicating the start of a bull market. The MVRV ratio fluctuated between 1.55 and 1.45 at press time, with large investors watching it closely to buy discounted Bitcoins during dips.

The analysis also showed that the 365DSMA should be considered as well, with the MVRV ratio breaking it to signal a trend change.

If Bitcoin’s MVRV ratio breaks the 1.5 level again, it is likely to shift to a value range between 1.8 and 2, that is, if the BTC price reaches 30K.

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Source: CryptoQuant

Bears claw their way in

Despite all these bullish signs, traders continued to remain cynical about BTC’s growth. Based on data from TheBlock, the Put to Call ratio for Bitcoin has seen a significant increase in recent months.

This suggested that a large number of traders have taken positions betting on a potential future decline in BTC’s market price.

Source: The Block