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Bulls To Ride Liquidity Wave
Bitcoin price recovery is underway after on-chain metrics flipped green, with analysts pointing to liquidity levels. In a recent X post, Hayes projected the anticipated recovery, highlighting a change in United States investor sentiments.
According to Hayes, minor improvements in the dollar liquidity will spur improvement, coupled with other macro factors. The crypto market tumbled for three consecutive weeks, leading to outflows hitting billions.
Bitcoin price fell 35% from its all-time high, fueling a wider decline in other assets as institutions withheld funds. The price of the crypto leader brushed $80,500 during the lengthy spell in the red zone, a point Hayes described as the low bottom.
Interestingly, other analysts also predicted a similar scenario for Bitcoin in the past seven days. For bulls, the dip to $80k is a new support level for an upward surge. Should traders maintain the support level, a steady rise is expected, as seen in the past 48 hours.
 
Bitcoin price exchanges hands at $89,021 with large traders picking up at ‘early’ positions in an attempt to bolster figures back to September highs. On the flipside, many argue that a BTC price slip below the $80K threshold could affect a new psychological blow, leading to slow recovery.
“minor improvements in $ liq: – fed qt stops dec 1, this wed will prob be last fall in b/s – us banks increased lending in nov we chop below $90k, maybe one more stab down into low $80k’s but i think $80k holds. might start nibbling, but leave the bazooka until the new year,” Hayes wrote.
If current factors remain constant, institutional volumes are the largest contributor to a rebound, as seen in previous months. After four weeks of consecutive institutional decline, the liquidity levels are primed to attract these investors.
Whales are also accumulating assets and taking up retail positions to strengthen their portfolios. These addresses have recorded large outflows from centralized exchanges to other custodians. Regarding rate cuts, Hayes believes the market’s trajectory will remain positive despite the Fed’s decision.