Bitcoin (BTC) price has been hovering in the $80K to $85K region for some time, with no signs of a recovery. However, many investors are optimistic about a BTC and crypto recovery due to the improving macroeconomic conditions, especially the recent uptick in the Global Liquidity Index.
Bullish Macroeconomic Outlook Hints at Bitcoin Price Breakout
Alpha Extract’s recent data on Global Liquidity Heatmap shows a major ‘shift’ favoring bullish momentum or risk-on conditions, i.e, an uptrend for Bitcoin price. The data analytics platform adds,
“Historically, such clear liquidity conditions have often provided Bitcoin with a favorable market environment for substantial upward moves.”
Simply put, the uptick in the Global Liquidity Index indicates that more capital is available for investing and will increase the risk-on behaviour. In other words, Alpha Extract notes that “higher liquidity levels have frequently preceded strong bullish trends.” If this outlook persists, the crypto market, including Bitcoin price could be due for a “breakout.”
With the bias relatively positive, let’s take a look at the liquidation heatmaps to determine where BTC price could head next.
Price Prediction Based on Global Liquidity Index & Liquidity Heatmap
Based on CoinGlass data, roughly $2B in short positions will be forced to close if Bitcoin price hits $90K. Conversely, $1.77B in long positions will be liquidated if BTC hits $78,140.
Other key Bitcoin price levels for short sellers include $84,872, $86,126, $87,050, and $88,880 to $89,500.
Coupled with the Global Liquidity Index’s bullish Bitcoin price prediction, the next key levels that crypto investors can expect is $90K. However, there might be a brief liquidity sweep below $80K before BTC can move higher.
Supporting this optimistic outlook is the decline in selling pressure on top exchanges. This outlook notes that sellers are exhausting, which could pave way for buyers to take control.
Selling Pressure Decline Adds Tailwind for BTC Price
According to on-chain analyst Axle Adler Jr., the selling pressure on exchanges has dropped from 81K to 29K BTC per day. He calls this phase the “zone of asymmetric demand,” but he is not quick to suggest that this could immediately push Bitcoin higher.
The crypto analyst adds that while Bitcoin has absorbed the profit-taking since $100K, April and May could see the top crypto by market cap consolidate. This preparation could catalyze an impulse move for the Bitcoin price later.
All outlooks, macroeconomic and otherwise, hint at a potential reversal for Bitcoin price. However, bottoms often take time to form and trap many on the offside before an impulsive move to the upside. The increasing global liquidity index, reducing exchange selling pressure suggest that a bullish reversal to $90K is highly likely in the near future.
The post Bitcoin Price is Primed Breakout Amid Bullish Macroeconomic Outlook appeared first on CoinGape.
