Swissblock, a well-known crypto analytics firm, believes Bitcoin (BTC) is nearing a major market bottom and is about to explode upwards.
Bitcoin’s Bottom is Near?
According to Swissblock, their Bitcoin Fundamental Index (BFI), which tracks network growth and liquidity, is showing signs of strength. This suggests new investors are entering the market, bringing fresh liquidity to the Bitcoin network. They tweeted that the bottoming process is almost over, and a significant price increase is likely.
The Key Metric: Liquidity
Swissblock emphasizes the importance of Bitcoin’s liquidity. They say once the liquidity level crosses 50 on their BFI, a massive bullish reversal is almost guaranteed. Currently, it’s hovering around 44.
More Than Just Bitcoin
The firm’s bullish outlook isn’t solely based on the BFI. They also point to the rising M2 money supply (the total amount of money in circulation) as a supporting factor. Bitcoin’s price, they argue, is finally catching up to this growth.
A Word of Caution
While Swissblock is optimistic, they acknowledge the possibility of another short-term sell-off. However, they view such a dip as a potential buying opportunity for new investors, ultimately adding more liquidity to the system.
Current Bitcoin Price and Disclaimer
At the time of writing, Bitcoin is trading at $75,014, down slightly for the day. Remember, this information is for general knowledge only and not financial advice. Always do your own research before investing in cryptocurrencies.
