The price of the Bitcoin could soon go “full bull” in a renewed rise that could see the cryptocurrency surpass the $80,000 mark, but before that occurs capitulation could be coming in a move that would take BTC below the $50,000 mark.
According to popular cryptocurrency analyst Cole Garner, on-chain liquidity is now tightening in a “common pre-requisite to full bull.” In a series of posts on the microblogging platform X (formerly known as Twitter), Gerner noted that liquidity on-chain starts “at its source, the central banks,” meaning that BTC could keep on gaining from the ongoing expansion of money supply.
Gearner pointed out that global central bank liquidity has been growing and while he believes “more downside could come first,” central banks in China, Japan, and the United States should keep global money supply growing.
He also pointed to the declining supply of major stablecoins USDT and USDC since the beginning of this month, pointing out that the quarterly rate of stablecoin supply “tends to lead price.”
In a chart he shared, the analyst suggested Bitcoin’s price could dip below the $50,000 mark before entering a renewed bull run that would see it top the $80,000 mark in the near future.
As reported, however, recently conducted analysis suggests that short-term BTC holders have been “gradually exiting” the market, which leads to reduce selling pressure.
According to analysis conducted by CryptoQuant analyst IT Tech, the supply of Bitcoin being held by short-term holders has decline “especially after major sell-offs,” which reduces selling pressure and creates “opportunities for accumulation and may signal a price floor.”
The analyst noted that as short-term holders sell their coins, these often end up in “stronger hands, potentially stabilizing the market.”
Bitcoin has been seeing new whales ‘fiercely’ add BTC to their holdings amid an accumulation trend that the market “has never seen,” as whales that have entered the market during the latest bull run keep looking for profit.
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