The Bitcoin (BTC) price is once again in troubled waters. After a brief recovery rally between March 22 and 24, the price has returned to a downtrend. Last weekend, BTC fell another 3%.
According to crypto analyst Capital Flows, the negative sentiment has not yet been overcome. On X, he warns that the BTC price could fall further due to increasing liquidity problems in the capital markets.
Local bottom between $72,000 and $75,000?
ccording to Capital Flows, Bitcoin could potentially reach a local bottom in the range between $72,000 and $75,000. This would mean that the price could still fall by approximately 12.5% ​​from its current level.
The analyst cites a decline in global liquidity as the main cause. Although market interest rates are currently falling – which is usually positive for liquidity – many investors remain cautious. They are not yet withdrawing their capital from interest-linked funds, which continues to put pressure on risky assets like crypto.
Bitcoin is trading below the 200-day moving average
Another important point for traders is that Bitcoin is currently below the 200-day exponential moving average (EMA) – a technical indicator often considered a key support level. As long as the price remains below this level, negative sentiment dominates. Nevertheless, some analysts point to signs of a possible short-term recovery.
Growing global liquidity offers hope
Despite the negative market trend, there is also a positive sign: the global money supply (M2) is increasing. This is due, among other things, to stimulus measures such as money printing in China. As investor uncertainty decreases and capital is shifted from bond funds to other asset classes, liquidity in the market could recover. Historically, an increase in M2 is often accompanied by an upward movement in the Bitcoin price.
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