The price of Bitcoin (BTC) is facing a critical stage following the world-shaking geopolitical tensions, particularly climbing the war conflict between Israel and Iran.
As reported by Cryptootics, the price of BTC shows resistance above $100,000 After the US bombed three nuclear facilities in Iran (Fordow, Isfahán, Natanz).
During this uncertainty scenario, market analyst Willie warns that “BTC has experienced a structural change.” For this reason, he recommends: “Remember, not from pricing forecasts, but rather can look at the complete structural panorama and make your own decisions about the best ways to manage capital according to your goals.”
To retain his approach, analysts share the SwissBlock Technologies Graph, a company specialising in analyzing digital asset markets where structural changes mentioned by Willie Wu are observed. This is a delay between two important metrics, such as network growth and reduced liquidity, which changes the behavior of Bitcoin.
That’s what supports price increases as the network grows. But now, however The network is growing and liquidity is declininggenerates the structural imbalances that Woo refers to.
As you can see in the following graph, the yellow line represents the price of BTC, while the network growth is emphasized in terms of operation (red line) and liquidity On-chain (blue line), that is, the capital that moves within that environment.
In this regard, Swissblock Analysts Technologies states: “The rapid decline in liquidity itself is a concern and indicates a decline in general activity in the system. As liquidity increases, prices are more correlated with chain dynamics for external factors. Simply put, in response to the questions raised in the article title, price increases become important. Rebound in liquidity On-chain From the red bitcoin.
This is the case for liquidity On-chain It means that the market has improved in its ability to absorb more operations, greater demand, purchases or sales without causing sudden price movements.
Liquidity rebound suggests that investors have real interest. There is enough capital to support a solid price increase.
A graph based on this diagnosis Market sensitivity Price behavior (market sensitivity in Spanish) BTC is currently more affected by internal factors than global events. This indicator measures how much market movements of two types of forces depend on. External factors (interest rates, regulations, geopolitical conflicts, etc.) and factors On-chain (as a network transaction or an active wallet).
In the graph, the horizontal axis shows sensitivity to external factors over the past 30 days, while the vertical axis reflects factor weights On-chain. Each blue point represents a time measurement, and the largest circle indicates its current position.
As you can see, the line displaces towards the upper quadrant, indicating a greater dependence on activity On-chain Low response to external events.
This pattern coincides with a low-liquidity environment, making price actions more vulnerable to any variation within the network. In this regard, Liquidity rebounds do not only reflect a recovery in investors’ profitsbut it provides the market with the solidity it needs to maintain price increases.
Otherwise, if fluidity does not recover, BTC is exposed to a wide range of volatility. In that context, even good external news (such as high fires in the Middle East) can have limited effects if not accompanied by internal reactivation on the network.
Anyway, experts at SwissBlock point out that it stands out, “not everything is lost.”Risk Off signal) stays at 0.
They also add that, although the liquidity conditions are worsening, The widest bull structure remains strongas long as the risk signal continues at a low level.
In fact, Willie Wu himself believes that “BTC has entered the final stage of the upward market,” but does not rule out that the currency created by Nakamoto Atoshi marks a new historic maximum (ATH) in the short term. That forecast is that once BTC prices exceed $112,000, it will immediately rise at $118,000.
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