Key Points
- Bitcoin’s price is expected to retrace to the $66.8K-$67.1K range before bouncing back up.
- Global liquidity is predicted to continue rising until 2026, potentially impacting Bitcoin’s price.
Bitcoin’s [BTC] price is currently in a critical range, with market analysts predicting its next move. The $66.8K to $67.1K zone on Bitcoin’s profile chart indicates fewer positions, suggesting a price gap. Historically, the price tends to move towards such gaps to fill them before continuing a trend.
The future of Bitcoin depends on whether it fills this gap before pushing higher or retraces further to gather liquidity.
Bitcoin’s Price Action
Bitcoin’s price action indicates a slight correction after reaching the $70K level, a significant milestone for the cryptocurrency. This retracement implies that Bitcoin is gathering momentum for its next move up, but it may first need to fill the gap in the $66.8K-$67.1K range.
This zone is beneath a key double bottom pattern on the 6-hour timeframe of the BTC/USDT pair, strengthening the potential for upward movement once the gap is filled.
The weekly chart remains bullish, with the structure broken to the upside, signifying strong market support.
Traders are closely monitoring this price action, expecting Bitcoin to hold at the $70K-$71K level, which could trigger a move into price discovery and a new all-time high.
The filling of the gap in this price range could also serve as a liquidity grab, allowing Bitcoin to gather strength before making a decisive move higher.
A successful breakout past $70K would signal the start of a new bullish phase, with Bitcoin potentially entering uncharted territory.
Profitability and Global M2 Supply
The Bitcoin Average Profitability Index further supports this outlook. The index currently stands at 202%, indicating that the price is more than double the realized price.
Historically, investors tend to start taking profits when this index rises above 300%, but for now, it suggests that the market is not yet in heavy profit-taking mode.
This leaves room for BTC to continue its upward trajectory after filling the price gap, with long-term holders still optimistic about higher price levels.
In addition to these indicators, the Global M2 money supply data offers insights into Bitcoin’s broader potential.
During previous bull cycles, such as in 2016-2017, the expansion of the M2 supply coincided with significant Bitcoin price growth.
In 2021, a similar expansion occurred, but external factors like the collapse of FTX and rising interest rates dampened Bitcoin’s momentum.
