A recent analysis indicates a potential rise for Bitcoin as capital returns to the cryptocurrency market. The firm Bitcoin Vector highlights an increase in Bitcoin liquidity, which could support sustainable growth.
Increase in Liquidity and Growth Expectations
The firm Bitcoin Vector reported a significant increase in Bitcoin liquidity since June, marking the first occurrence after hitting a three-year low. Despite consolidating just below its all-time high, this liquidity boost is expected to support sustainable price movements.
> "The signal we awaited: Bitcoin liquidity has shown a significant expansion for the first time in three years in June. For BTC consolidating below the ATH, this liquidity supports a sustainable upward move. While not a breakout, it is a positive change," stated Bitcoin Vector.
Historical Technical Signals and Market Behavior
Bitcoin Vector analyzed a significant structural change and renewed price momentum in the market. These elements have historically resulted in notable price increases, and a similar dynamic appears to be reemerging in the market.
> "Structural change and price momentum: the ideal pair we want to see. This setup, confirming bull momentum and structural change, led to strong upward movements in the past. We observe the same pattern being triggered again," the firm noted.
Bitcoin and Ethereum Comparison
Over the past year, Bitcoin outperformed Ethereum, the second-largest digital asset by trading volume. Bitcoin increased by 74%, while Ethereum declined by 28%.
Following this development, Bitcoin's market dominance reached a high point, whereas Ethereum lagged in value and saw fewer transactions. Analysts suggested that Ethereum might soon move to close this gap.
> "Throughout the last year, BTC significantly outperformed ETH; BTC rose by 74% while ETH fell by 28%. However, this strengthening came at a cost. While BTC's dominance increased, ETH is now less held and undervalued. Rotation season is approaching," Bitcoin Vector stated.
Current analyses in the cryptocurrency market suggest that the increase in Bitcoin liquidity and technical signals may potentially mark the start of a sustained upward wave. Bitcoin's performance over the past year has been stronger compared to Ethereum, which is anticipated to actively seek value gains in the future.
