Bitcoin (BTC) Price Prediction: BTC May Be Poised For Rally Targeting $70,000

In the last few months, Bitcoin (BTC) has been trading within the $56,000 to $70,000 range. According to a new report from 10x Research, rising liquidity inflows position the coin to sustain its uptrend.

Bitcoin (BTC) has been trading within the range of $56,000 to $70,000 over the past few months. However, rising liquidity inflows could help the coin sustain its uptrend, according to a new report by 10x Research.

At the time of writing, Bitcoin (BTC) trades at $63,632, up 9% over the past seven days.

10x Research’s new report found that the BTC market has seen a surge in liquidity over the past few weeks. According to the report, total liquidity inflows reached a year-to-date high of $61.9 billion, surpassing the previous peak in July.

This surge in liquidity can be attributed, in part, to an increase in stablecoin minting. According to Glassnode, the combined supply of the top five stablecoins — Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), and TrueUSD (TUSD) — has increased by 3% over the past month.

The rise in stablecoin minting is a bullish signal as it indicates a growing demand for cryptocurrencies. As more fiat currency is converted into stablecoins, it effectively buys crypto.

While noting that the 7-day minting impulse has decreased from $2.7 billion to $1.0 billion, 10x Research stated that “it remains strong.”

Moreover, the derivatives market saw an increase in leverage through Bitcoin’s perpetual futures, contributing to its recent price momentum. This leverage and the ongoing liquidity inflows could propel the coin’s price toward the $70,000 level.

Weaker Dollar Bodes Well For Bitcoin Price

10x Research also observed a crucial macroeconomic shift in early July, which could aid BTC’s price. According to the report, the US Dollar peaked in the first few days of July, and 10-year Treasury bond yields declined.

Oil prices, a key indicator of economic strength, also dropped by 10% after reaching their peak in early July. Additionally, the ISM Manufacturing Index, which has remained below 50 for the third consecutive month, suggests a potential slowdown in the US economy.

When analyzing these macroeconomic trends in relation to BTC’s historical performance, the research firm noted that a weaker US Dollar and lower bond yields have traditionally been favorable for the leading cryptocurrency.

“Fed Chair Powell’s speech, combined with the weakness in the ISM Manufacturing Index and the decline in the US Dollar, has set the stage for expectations of increased market liquidity, which could stimulate risk assets like stocks and Bitcoin,” 10x Research added.

On August 23, Bitcoin broke above the resistance at $61,000 and has since trended upward. However, 10x Research notes that its bullish target of $70,000 will only materialize “if the broader economy doesn’t falter.”

If the macro trend bodes well and Bitcoin maintains its uptrend, the next price target is $64,442. If this level holds and the rally continues, BTC could reclaim the critical $68,000 support before pushing toward $70,000.

On the other hand, if selling pressure intensifies, BTC’s price may drop to $61,509, invalidating the bullish projection.

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