Key Points
- Bitcoin’s price may retrace to the $66.8K-$67.1K range before pushing higher.
- Global liquidity could continue to rise until 2026, potentially impacting Bitcoin’s price.
Bitcoin (BTC) is currently navigating a crucial price range, with market observers keenly watching its next move. There are fewer positions in the $66.8K to $67.1K zone on Bitcoin’s profile chart, which suggests a price gap. Historically, prices have been known to gravitate towards such gaps to fill them before continuing a trend.
The future of Bitcoin depends on whether it fills this gap before surging higher or whether it retraces further to accumulate liquidity.
Bitcoin’s Potential Price Gap
Bitcoin’s price action reveals a slight correction after reaching the $70K mark, a significant achievement for the cryptocurrency. This retracement implies that Bitcoin is gathering momentum for its next upward move, but it might first need to fill the gap in the $66.8K-$67.1K range.
This zone is situated below a crucial double bottom pattern on the 6-hour timeframe of the BTC/USDT pair, strengthening the likelihood of an upward move once the gap is filled. The weekly chart remains bullish, with the structure broken to the upside, indicating robust market support.
Traders are closely monitoring this price action, with many expecting Bitcoin to hold at the $70K-$71K level, which could potentially trigger a move into price discovery and a new all-time high.
Profitability and Global M2 Supply
The Bitcoin Average Profitability Index also supports this view. At present, the index is at 202%, meaning the price is more than double the realized price. Historically, when this index rises above 300%, investors start taking profits. However, the current level suggests that the market is not yet in heavy profit-taking mode.
This leaves room for Bitcoin to continue its upward trajectory after filling the price gap, with long-term holders still optimistic about higher price levels.
The Global M2 money supply data provides 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.