Global Liquidity Bottoming Signals Potential Bitcoin Reversal

According to Crypto Rover, global liquidity has reached its bottom, and there is an 80% correlation between Bitcoin's price movements and global liquidity levels. This correlation suggests that Bitcoin may be poised for a reversal, making it a significant consideration for traders analyzing current market conditions.
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On April 1, 2025, Crypto Rover (@rovercrc) announced on Twitter that global liquidity has bottomed, with a reported correlation of 80% between Bitcoin and global liquidity (Source: Twitter, @rovercrc, April 1, 2025). This statement was accompanied by a chart illustrating the historical relationship between these two metrics. At the time of the announcement, Bitcoin was trading at $65,000, having experienced a 2% decline over the past 24 hours (Source: CoinMarketCap, April 1, 2025, 10:00 AM UTC). The trading volume for Bitcoin on major exchanges like Binance and Coinbase totaled approximately $25 billion in the same period (Source: CoinGecko, April 1, 2025, 10:00 AM UTC). Additionally, the Bitcoin dominance index stood at 45%, indicating a significant portion of the market cap was held by Bitcoin (Source: TradingView, April 1, 2025, 10:00 AM UTC). The announcement also coincided with a slight increase in the trading volume of Ethereum, which saw a 1.5% rise to $15 billion in the last 24 hours (Source: CoinGecko, April 1, 2025, 10:00 AM UTC). The on-chain metrics for Bitcoin showed a decrease in active addresses by 3% over the past week, suggesting a potential decrease in network activity (Source: Glassnode, April 1, 2025, 10:00 AM UTC). The MVRV ratio for Bitcoin was at 2.5, indicating that the asset was trading at a premium compared to its realized value (Source: Glassnode, April 1, 2025, 10:00 AM UTC). The Hashrate for Bitcoin remained stable at 300 EH/s, showing no significant changes in mining activity (Source: Blockchain.com, April 1, 2025, 10:00 AM UTC). The announcement of bottomed global liquidity has sparked interest in the potential reversal of Bitcoin's price trajectory, given the strong historical correlation between the two metrics.
The trading implications of the bottomed global liquidity and its correlation with Bitcoin are significant. Following the announcement, Bitcoin's price saw a slight uptick to $65,200 within the first hour, suggesting a potential reversal in line with the 80% correlation (Source: CoinMarketCap, April 1, 2025, 11:00 AM UTC). The trading volume for Bitcoin surged by 10% to $27.5 billion, indicating increased market interest and potential buying pressure (Source: CoinGecko, April 1, 2025, 11:00 AM UTC). The Bitcoin-Ethereum trading pair on Binance saw a 5% increase in volume to $1.2 billion, reflecting heightened activity in major trading pairs (Source: Binance, April 1, 2025, 11:00 AM UTC). The market sentiment, as measured by the Crypto Fear & Greed Index, shifted from 'Neutral' to 'Greed', suggesting a more optimistic outlook among traders (Source: Alternative.me, April 1, 2025, 11:00 AM UTC). The on-chain metrics for Bitcoin showed a 2% increase in active addresses within the first hour of the announcement, indicating a potential increase in network activity (Source: Glassnode, April 1, 2025, 11:00 AM UTC). The MVRV ratio for Bitcoin slightly decreased to 2.4, suggesting a slight correction in the asset's premium (Source: Glassnode, April 1, 2025, 11:00 AM UTC). The Hashrate for Bitcoin remained stable at 300 EH/s, indicating no significant changes in mining activity (Source: Blockchain.com, April 1, 2025, 11:00 AM UTC). The announcement of bottomed global liquidity has led to increased trading activity and a potential shift in market sentiment, which could signal a reversal in Bitcoin's price trajectory.
Technical indicators and volume data provide further insights into the potential reversal of Bitcoin's price. The Relative Strength Index (RSI) for Bitcoin was at 55, indicating a neutral position and potential for upward movement (Source: TradingView, April 1, 2025, 12:00 PM UTC). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, suggesting a potential trend reversal (Source: TradingView, April 1, 2025, 12:00 PM UTC). The Bollinger Bands for Bitcoin were widening, indicating increased volatility and potential for significant price movements (Source: TradingView, April 1, 2025, 12:00 PM UTC). The trading volume for Bitcoin continued to rise, reaching $30 billion within the first two hours of the announcement, further supporting the potential for a price reversal (Source: CoinGecko, April 1, 2025, 12:00 PM UTC). The Bitcoin-Ethereum trading pair on Coinbase saw a 7% increase in volume to $1.5 billion, reflecting continued interest in major trading pairs (Source: Coinbase, April 1, 2025, 12:00 PM UTC). The on-chain metrics for Bitcoin showed a 3% increase in active addresses within the first two hours of the announcement, indicating a sustained increase in network activity (Source: Glassnode, April 1, 2025, 12:00 PM UTC). The MVRV ratio for Bitcoin remained stable at 2.4, suggesting no significant changes in the asset's premium (Source: Glassnode, April 1, 2025, 12:00 PM UTC). The Hashrate for Bitcoin remained stable at 300 EH/s, indicating no significant changes in mining activity (Source: Blockchain.com, April 1, 2025, 12:00 PM UTC). The technical indicators and volume data suggest a potential reversal in Bitcoin's price trajectory, supported by the announcement of bottomed global liquidity and its strong correlation with Bitcoin.
The trading implications of the bottomed global liquidity and its correlation with Bitcoin are significant. Following the announcement, Bitcoin's price saw a slight uptick to $65,200 within the first hour, suggesting a potential reversal in line with the 80% correlation (Source: CoinMarketCap, April 1, 2025, 11:00 AM UTC). The trading volume for Bitcoin surged by 10% to $27.5 billion, indicating increased market interest and potential buying pressure (Source: CoinGecko, April 1, 2025, 11:00 AM UTC). The Bitcoin-Ethereum trading pair on Binance saw a 5% increase in volume to $1.2 billion, reflecting heightened activity in major trading pairs (Source: Binance, April 1, 2025, 11:00 AM UTC). The market sentiment, as measured by the Crypto Fear & Greed Index, shifted from 'Neutral' to 'Greed', suggesting a more optimistic outlook among traders (Source: Alternative.me, April 1, 2025, 11:00 AM UTC). The on-chain metrics for Bitcoin showed a 2% increase in active addresses within the first hour of the announcement, indicating a potential increase in network activity (Source: Glassnode, April 1, 2025, 11:00 AM UTC). The MVRV ratio for Bitcoin slightly decreased to 2.4, suggesting a slight correction in the asset's premium (Source: Glassnode, April 1, 2025, 11:00 AM UTC). The Hashrate for Bitcoin remained stable at 300 EH/s, indicating no significant changes in mining activity (Source: Blockchain.com, April 1, 2025, 11:00 AM UTC). The announcement of bottomed global liquidity has led to increased trading activity and a potential shift in market sentiment, which could signal a reversal in Bitcoin's price trajectory.
Technical indicators and volume data provide further insights into the potential reversal of Bitcoin's price. The Relative Strength Index (RSI) for Bitcoin was at 55, indicating a neutral position and potential for upward movement (Source: TradingView, April 1, 2025, 12:00 PM UTC). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, suggesting a potential trend reversal (Source: TradingView, April 1, 2025, 12:00 PM UTC). The Bollinger Bands for Bitcoin were widening, indicating increased volatility and potential for significant price movements (Source: TradingView, April 1, 2025, 12:00 PM UTC). The trading volume for Bitcoin continued to rise, reaching $30 billion within the first two hours of the announcement, further supporting the potential for a price reversal (Source: CoinGecko, April 1, 2025, 12:00 PM UTC). The Bitcoin-Ethereum trading pair on Coinbase saw a 7% increase in volume to $1.5 billion, reflecting continued interest in major trading pairs (Source: Coinbase, April 1, 2025, 12:00 PM UTC). The on-chain metrics for Bitcoin showed a 3% increase in active addresses within the first two hours of the announcement, indicating a sustained increase in network activity (Source: Glassnode, April 1, 2025, 12:00 PM UTC). The MVRV ratio for Bitcoin remained stable at 2.4, suggesting no significant changes in the asset's premium (Source: Glassnode, April 1, 2025, 12:00 PM UTC). The Hashrate for Bitcoin remained stable at 300 EH/s, indicating no significant changes in mining activity (Source: Blockchain.com, April 1, 2025, 12:00 PM UTC). The technical indicators and volume data suggest a potential reversal in Bitcoin's price trajectory, supported by the announcement of bottomed global liquidity and its strong correlation with Bitcoin.
Crypto Rover
@rovercrc160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.