- Bitcoin’s Stock-to-Flow Model indicated that the top is nowhere near
- All Bitcoin signals are flashing green as everything aligns for Bitcoin
With Bitcoin [BTC] hovering close to its ATH again, market participants are now wondering what’s next for the world’s largest cryptocurrency.
According to the Bitcoin Stock-to-Flow (S2F) model, the current cycle still has enough room to the upside. In fact, over history, Bitcoin’s price has significantly coincided with the S2F curve, with the latter now hinting at a potential price hike.
Source: Coinvo/X
At it stands, Bitcoin is still below the forecasted trend, meaning that the cycle peak might not have been met yet. The plot of error further suggested that BTC may be undervalued, with respect to the model.
Should history repeat itself, Bitcoin might gain significantly before its peak.
A flash of bullish signals
Apart from the top being far, Bitcoin has turned bullish lately. In fact, BTC clearly broke above a long term downtrend, one that previously acted as resistance, having confined the price since late-2024.
Following the breakout, the crypto managed to retest this zone twice at the price of about $10ok, each time, as support. This alluded to the legitimacy of the breakout.
Additionally, the bullish retest was accompanied by a great MACD reversal, whereby the MACD line crossed the Signal line three times in the last three months. Each time, this has led to uptrend in the price.
The crypto’s latest crossover corresponded to the thrust up to $109k. Its histogram bars also reinforced bullish momentum across the board.
Source: Merlijn The Trader/X
Finally, the shift across the MACD highlighted the little selling pressure against previous selling pressure. When combining all these signals, it would mean that the sentiment in the market has reversed in favor of the bulls.
In fact, Bitcoin might have a chance to revisit old highs and break new price grounds beyond the existing ones.
Rising global liquidity meets aggressive buying
That’s not all though, with the wave of liquidity rising sharply as the Global M2 chart denoted. M2 has always gone before the rallies of Bitcoin.
The fact that the press time dislocation places Bitcoin behind M2 by around 11 weeks implies that the crypto market may be ready to play catch-up. Especially as long as liquidity continues to trend higher.
Source: Crypto Rand/X
To support this possibility, Binance registered a hike in its net taker volume beyond $100 million, as per CryptoQuant. Such an uptick hinted at signs of bullish buying activity pre-U.S Non-farm Payrolls data.
Now, most historical trends indicate that Bitcoin may steadily continue its ascent, similar to that of M2. However, the aforementioned stagnation implied that there may be some apprehension on the part of investors.
An extended liquidity twitch as well as forceful macro-economic cues may wake up a new Bitcoin boom.
Watching on-chain movements and macro indicators will be necessary to determine which way the market goes in the short and medium term.
