Bitcoin's Breakout Above $66K Sparks Bullish Sentiment, But Liquidity Remains a Concern

Bitcoin's recent breakout above $66,000 has sent a wave of bullish sentiment through the market. The discussion is now shifting from a local bottom to a macro bottom, as many analysts argue that the cycle low may already be in.

Crypto analyst Ali Martinez notes that Bitcoin has flashed the same three technical signals that have historically coincided with macro cycle bottoms: the monthly RSI dropping to around 43.65, the Chande Momentum Oscillator (CMO) falling to roughly -71, and Bitcoin trading near its 50-month moving average.

These signals have repeated across previous cycles, including in 2015, when Bitcoin was stuck at $235 before rallying more than 8,300%, and in early 2019, when it flashed near $3,333, preceding a gain of 1,900%. The same setup returned in late 2022 around $16k, shortly after Bitcoin bottomed near $15k.

However, liquidity remains a major concern for the market. Stablecoin dominance has climbed to around 13%, narrowing the gap with Ethereum's 10%+ market dominance. On-chain data shows that stablecoins have been leaving exchanges for 35 consecutive days, while Bitcoin has yet to see a meaningful pickup in spot accumulation.