Just when the expectation of an accelerated rally was about to be realized, the bears have rescheduled the start of the rally. Since Bitcoin hit a high of nearly $68,500, the possibility of hitting $100,000 has emerged. However, the only important factor that impacts volatility is liquidity, and the point to consider is that all that could be the catalyst that could restore a strong uptrend.
Going back to 2016 and 2020, the bull run was triggered by a massive increase in liquidity. In addition, the market capitalization of stablecoins like USDT or USDC increased by more than $173 billion, the highest level since the UST collapse. Stablecoins are the gateway to the crypto industry and therefore, the increase in market capitalization shows the preparation of bulls, as the market capitalization of USDT is increasing while the market capitalization of BTC is stagnant.
Could this indicate a potential bull run in the coming days? Will BTC price make a sustainable rally towards new highs?
Bitcoin’s weekly price action shows that the token is in a bullish range as it attempts to break above the cup and handle pattern. The RSI has recovered while the MACD is close to confirming a bullish crossover, so the bullish momentum could remain vertical. Furthermore, if BTC closes the weekly trading above the parallel channel, somewhere above $67,500 to $67,800, a move above $70,000 could be imminent.
On the other hand, the FASB rule is about to be implemented, allowing companies to report the value of BTC based on its level on a given exchange at the end of a required period. Currently, S&P 500 companies are holding $2.5 trillion in cash and cash equivalents, which will depreciate with inflation. Therefore, the price of Bitcoin (BTC) is on the right track and therefore, a bullish close above $68,000 seems imminent within the week.
