Analysts See Bitcoin Poised for Sharp Rebound as Liquidity Improves
Swissblock, a leading crypto analytics firm, is hinting that Bitcoin could be approaching a significant market bottom.
According to their insights, a unique indicator known as the Bitcoin Fundamental Index (BFI) suggests that the cryptocurrency might be preparing for a major move.
BFI, a metric that merges liquidity and network growth data, has been showing signs of improvement. Swissblock interprets this as a signal that more investors are entering the Bitcoin market, adding fresh liquidity. They believe this influx is part of a crucial bottoming process that could soon give way to a substantial price surge.
The firm points out that Bitcoin’s liquidity needs to cross a critical threshold of 50 for a clear bullish reversal to take shape. As of now, the liquidity level is around 44. If it manages to push past this point, Swissblock predicts a rapid upward move that might catch bearish traders off guard.
Adding to their positive outlook, Swissblock highlights the recent increase in the M2 money supply, which reflects the total money circulating in the economy. Bitcoin, they say, has been slow to respond to this growth but is now beginning to align with it, which could bolster its upward momentum.
Despite their bullish stance, Swissblock remains cautious, acknowledging that a short-term dip could still occur. They see this as an opportunity for new investors to buy in at lower prices, potentially increasing market liquidity. While the possibility of a brief pullback exists, the firm ultimately expects a significant upward breakout once current conditions stabilize.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
