Bitcoin’s liquidity is beginning to rise again after months of decline, hinting at a potential shift in market momentum.
According to Swissblock’s data, this is the first liquidity uptick since July, and this move often precedes significant price action in Bitcoin and the broader crypto market.
Analysts note that capital is re-entering the system, primarily flowing into Bitcoin, historically leading to breakout phases followed by altcoin rallies.
“Liquidity upticks like this have been early signals of trend reversals in every major cycle,” analyst CryptoRodo commented. He pointed to 2019, 2020, and mid-2023 as examples when the BTC Liquidity Index turned higher weeks before price expansion began.
Rising liquidity, he added, typically reflects new collateral entering the system through stablecoin minting, ETF inflows, and reduced funding stress, all of which can fuel market recovery.
Key levels and market structure
Bitcoin recovered some ground before the CME close on Friday, stabilizing around $107,000. Trader Daan Crypto described the current range as a short-term holding zone, emphasizing that Bitcoin must stay above the $105,000 level to maintain its bullish structure.
“That’s my line in the sand in the short term,” he noted, describing his outlook as cautiously bullish after recent volatility.
Market watchers generally agree that the $105K—$107K zone will define Bitcoin’s next move. As SLTP Trade remarked, losing that support could send BTC “back to hunting liquidity under 100K,” whereas holding it could form a base for a stronger rebound in the coming week.
Broader market indicators paint a similar picture. The total crypto market capitalization is now retesting its earlier consolidation zone near $3.65 trillion. Maintaining that support is vital for preserving structural strength and reviving overall sentiment.
If liquidity continues to build, analysts believe Bitcoin could lead the charge again, setting the tone for a potential market-wide recovery and the early stages of a renewed altcoin cycle.