Highlights:
- Bitcoin rises 1% to $107,000, with trading volume up 11% amid surging global liquidity.
- Global liquidity ATH fuels bullish momentum, signaling potential breakout to $110K–$112K.
- Technical analysis indicates upside potential as long liquidations dominate short positions.
As of July 2, Bitcoin reclaimed $107K, marking a 1% daily gain. The 11% surge in trading volume reflects growing investor confidence, coinciding with a record-high global liquidity spike. This liquidity surge historically precedes significant Bitcoin price rallies, suggesting an imminent upward trajectory.
Global Liquidity: The Catalyst for Bitcoin’s Next Rally
Renowned analyst Merlijn The Trader highlights the correlation between Bitcoin and global liquidity:
"Global Liquidity just broke out to a new all-time high. That’s fuel. Every time liquidity hits ATHs, Bitcoin follows with violent upside. The chart says it’s showtime."
This liquidity-driven momentum could propel Bitcoin toward $110K+, as historical patterns repeat.
Bitcoin’s Consolidation Phase: A Springboard for Breakout?
BTC/USD remains bullish, oscillating between $105K–$107K, with strong support at $105,380. Key observations:
- RSI at 55.71 suggests room for upward movement.
- Liquidation imbalance: Long liquidations ($3.17B**) exceed shorts (**$1.97B), hinting at a potential short squeeze.
👉 Why liquidity surges matter for Bitcoin’s price
Key Resistance and Support Levels
- Upside targets: A breakout above $108K** could propel BTC to **$110K–$112K (ATH).
- Downside cushion: $105K–$106K acts as robust support.
Long-term outlook: Bulls may target $125K if macroeconomic conditions remain favorable.
FAQs
1. Why does global liquidity affect Bitcoin’s price?
Global liquidity increases capital flow into risk assets like Bitcoin, amplifying demand and price momentum.
2. What’s the significance of long vs. short liquidations?
Higher long liquidations indicate leveraged bullish positions being wiped out, often preceding a squeeze that accelerates price rallies.
3. How reliable is the $110K short-term target?
Technical and liquidity metrics align, but market sentiment and macroeconomic shifts remain critical factors.
👉 Bitcoin’s next breakout: Timing the rally
4. What risks should traders monitor?
- Sudden liquidity contractions.
- Breakdown below $105K support.
5. How does RSI influence Bitcoin’s trend?
An RSI near 55 suggests balanced momentum, leaving room for upward movement without overbought conditions.
6. Is a new ATH above $112K feasible?
Yes, if global liquidity sustains growth and Bitcoin maintains its correlation with macro trends.