{"id":41821,"date":"2025-08-12T20:01:53","date_gmt":"2025-08-12T20:01:53","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=41821"},"modified":"2025-08-12T20:01:53","modified_gmt":"2025-08-12T20:01:53","slug":"momentum-is-here-but-will-liquidity-unlock-bitcoins-price-discovery","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=41821","title":{"rendered":"Momentum Is Here \u2013 But Will Liquidity Unlock Bitcoin\u2019s Price Discovery?"},"content":{"rendered":"
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Bitcoin\u2019s recent rally briefly surpassed its $120,500 breakout target, which has raised the question of what\u2019s next for the leading cryptocurrency.<\/p>\n

But liquidity trends will determine whether momentum continues or stalls near all-time highs.<\/p>\n

Liquidity for Breakout Potential<\/h2>\n

In its latest market commentary, Swissblock said<\/a> that while broader macroeconomic volatility and potential downside pressure remain in play, Bitcoin\u2019s price momentum is \u201caligning\u201d and showing signs of \u201cignition.\u201d Such a setup typically supports further gains.<\/p>\n

However, the firm warned that the path ahead will depend on the correlation between key on-chain and liquidity metrics. Meanwhile, Swissblock\u2019s analytics firm Bitcoin Vector found<\/a> that as Bitcoin edges closer to its all-time high, network growth is currently high at a ratio of around 82, and liquidity is in a mid-range at approximately 52.<\/p>\n

This combination historically favors continuation if liquidity strengthens into the 50-60 range, which is expected to provide \u201cfuel for another leg\u201d upward.<\/p>\n

On the other hand, if liquidity falls below 40 while network growth remains high, it could signal a late-stage risk setup. This pattern often precedes choppy tops or sharp pullbacks. Bitcoin Vector said that surpassing the all-time high is only the first step; sustaining the breakout and entering full price discovery will depend on liquidity trends.<\/p>\n

BTC Moves in Step with Stocks<\/h2>\n

While Bitcoin managed to erase the prior week\u2019s losses, Ethereum appears to have led the rally. The altcoin gained 21% over the past week and breached $4,300 for the first time since 2021.<\/p>\n

QCP Capital observed<\/a> that the correlation between Bitcoin and equities has strengthened significantly since mid-July.<\/p>\n

Today\u2019s crypto performance reflected gains in US stocks, which have rebounded from last week\u2019s post-payrolls dip to trade near record levels, and in the process, shrugged off fresh tariffs and macroeconomic uncertainty.<\/p>\n

The immediate market focus is on Tuesday\u2019s US Consumer Price Index (CPI) release, with consensus expecting a 10 bps uptick in annual inflation to 2.8%. A softer-than-expected print would likely cement market expectations for a September Federal Reserve rate cut, odds already near certainty after a dovish pivot from several Fed officials.<\/p>\n

QCP stated such an outcome could provide the push needed for crypto to set new all-time highs. But, a hotter CPI reading could prompt a pause in the rally, with some traders already hedging via increased demand for front-end $115k-$118k BTC puts, while topside short-call covering continues.<\/p>\n

The firm expects front-end volatility to remain high until the CPI release, potentially followed by compression unless BTC decisively breaks resistance. Beyond on-chain liquidity metrics, institutional demand and spot ETF inflows remain critical watchpoints as Bitcoin hovers<\/a> near its peak, while traders may engage in profit-taking likely before CPI.<\/p>\n

QCP maintained a structurally bullish outlook and cited the market\u2019s resilience in absorbing recent large \u201cOG whale\u201d sell-offs without losing upward momentum. Key upcoming data include US CPI on August 12th, PPI and unemployment claims on August 14th, and US retail sales on August 15th.<\/p>\n

The post Momentum Is Here \u2013 But Will Liquidity Unlock Bitcoin\u2019s Price Discovery?<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bitcoin\u2019s recent rally briefly surpassed its $120,500 breakout target, which has raised the question of what\u2019s next for the leading cryptocurrency. But liquidity trends will determine whether momentum continues or stalls near all-time highs. Liquidity for Breakout Potential In its latest market commentary, Swissblock said that while broader macroeconomic volatility and potential downside pressure remain […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-41821","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/41821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41821"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/41821\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}