- Bitcoin is now trading at $85,970 but lags well behind an increase in global liquidity.
- Historically, incidents of liquidity lag have been followed by price surges for Bitcoin.
- Should the asset catch up soon enough, it could breach the $91,000 resistance level.
As global liquidity remains upbeat, Bitcoin appears to be lagging behind; thus, an interesting buying opportunity arises. This chart posted by Ali on TradingView shows that Bitcoin’s moving price is shown in black, while the increasing measure of global liquidity is shown in gray. In the sense that liquidity has risen to new highs and Bitcoin’s price has staggered behind from $91 low at the start of 2024 down to its current price of $85,970, this gap in price behavior might be a catch-up rally for Bitcoin, especially as liquidity is buying other assets.
Global liquidity is on the rise again, and #Bitcoin has historically been highly correlated to it. However, since July, $BTC appears to be lagging behind, which could signal a unique buying opportunity! pic.twitter.com/M3ODCe80Bf
— Ali (@ali_charts) March 3, 2025
Bitcoin’s Performance vs. Global Liquidity
The correlation dictates that this lagging nature of Bitcoin is just temporary, as by historical analyses, Bitcoin has behaved in accordance with global liquidity; hence upward liquidity have not gone uncelebrated by a swoon on the part of Bitcoin acceptable with some time lag. On the chart, Bitcoin’s price per token in late 2023 was just shy of $91 and plummeted evilly at practically the same time as global liquidity advanced to $100,000 levels. The notable lag of Bitcoin in this price cycle is conspicuous, yet the chart also shows that, historically, such lag periods are usually followed by formidable price catch-ups, once market participants can price in the impact of the fresh liquidity conditions. This time, Bitcoin is sitting at $85,970, substantially declining against liquidity trends.
Charging this lag seems pessimistic from the viewpoint of probability, but considering this as a buying opportunity will be the most optimistic judgment one could ever make. In the past, the patterns have often indicated that Bitcoin will witness price surges that may flourish up as it catches up to the trends of global liquidity. As liquidity keeps pushing upwards, price action must catch up with it, and the upside offer may be enormous. The current level could find support at $85,970 and witness further recoveries, considering the prediction of liquidity to maintain a concrete outlook in the months to come.
Dollar Perspective of Bitcoin Price Potential Breakout
In terms of historical correlations with dollar liquidity and Bitcoin, analysts’ eyes are peeled now for a breakout. The following handful of weeks could prove to be exceptionally meaningful in deciding if Bitcoin will adopt momentum similar to that which has already been shown by global liquidity. Should Bitcoin begin to track liquidity more tightly and rise above $91,000, then it might actually break out of $100,000, a level which has thus far been a strong level of resistance that has fought tooth and nail to keep Bitcoin under its clutches.