Matrixport released a chart today stating that over the past 18 months, global liquidity changes have reflected Bitcoin trends ahead of time multiple times, which many investors consider an important "leading indicator." However, as the market structure evolves, the predictive power of this model is weakening and requires continuous validation and dynamic adjustments.
The current Bitcoin price is fluctuating between $105,000 and $110,000, which is basically consistent with the 13-week lagging pace indicated by this model. If this correlation continues to be effective, Bitcoin needs to hold the current support range in order to maintain the expectation of an uptrend. If the trend is further confirmed, the price of Bitcoin may climb to $140,000 by the end of this summer.
There is still disagreement in the market about the stability of this model, but until it is falsified, it still has some reference value as a tool for observing market sentiment and trend changes.
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