Historic 2020 Liquidity Trend Flashes Again – Analysts Tip Bitcoin for $120K Breakout
A uncommon liquidity pattern that has traditionally appeared forward of each main Bitcoin rally is flashing once more, prompting analysts to forecast one other robust uptrend that might propel BTC towards $120,000 within the coming months.
According to CryptoQuant analyst Ignacio Moreno, the Stablecoin Supply Ratio (SSR) and change reserve knowledge are actually mirroring the identical circumstances final seen in 2020, 2021, and mid-2024, intervals that every one preceded highly effective Bitcoin breakouts to new all-time highs.
“When stablecoin reserves attain excessive ranges relative to Bitcoin’s market cap, the market traditionally doesn’t keep quiet for lengthy,” Moreno famous in his newest evaluation shared with traders.
Bitcoin Liquidity Signal Reaches Historic Range
Moreno explained that the Stablecoin Supply Ratio, which compares Bitcoin’s market cap to the market cap of all stablecoins, has as soon as once more dropped into its decrease historic vary close to 13.
This degree, he stated, has reliably marked accumulation zones and market bottoms in previous cycles.
“Each time SSR has returned to this zone, Bitcoin was buying and selling quietly earlier than staging a robust rebound,” he wrote, describing the sample as a “liquidity configuration that has solely appeared a handful of occasions since 2020.”
Further supporting the bullish statement, Moreno pointed to knowledge from Binance, the place stablecoin reserves are rising whereas BTC reserves proceed to say no.
This divergence, he stated, suggests “latent shopping for energy ready to be deployed“, a pattern that usually emerges throughout phases of vendor exhaustion and structural capitulation, when “weak fingers exit and powerful fingers start to build up quietly.“
“From a threat/reward perspective, these moments have a tendency to supply uneven alternatives: draw back seems restricted, whereas upside expands as liquidity rotates again into BTC,” Moreno added.
Falling Wedge Forms as Bitcoin Coils for $120K Move
Complementing the liquidity narrative, market technician Bitcoinsesus observed that Bitcoin is presently coiling inside a falling wedge sample, a setup that usually precedes sharp bullish reversals.
“A breakout above $106,000 may set off a robust transfer towards $120,000 or greater,” he stated.
Farzam Ehsani, co-founder and CEO of VALR, additionally instructed Cryptonews that the easing macroeconomic uncertainty in help of constructive on-chain indicators may maintain capital inflows into the crypto market.
“The macro uncertainty that loomed over markets in latest weeks lastly appears to be easing, opening the pathway for a broader rebound,” Ehsani stated.
“For the crypto markets, the place liquidity and capital inflows had thinned considerably, the return of confidence indicators a possible inflection level within the present cycle.”
VALR CEO Says Next Week’s CPI Data Key for $120K Breakout
Ehsani identified that progress towards resolving the U.S. government shutdown and the President’s plan to distribute $2,000 checks utilizing tariff proceeds have already helped elevate the crypto market by 4.5% up to now 24 hours.
U.S. authorities shutdown progress lifts Bitcoin above $105k, but spot ETF outflows and long-term holder promoting maintain rallies muted total.#usa #shutdown #etfhttps://t.co/bmkfaLpuBV
— Cryptonews.com (@cryptonews) November 10, 2025
He cautioned, nevertheless, that the upcoming Consumer Price Index (CPI) release may decide whether or not the rally sustains or stalls.
“The CPI knowledge might be the final tailwind for the market’s restoration or the subsequent headwind that triggers a sell-off,” he stated.
VALR CEO cautioned that sticky inflation may push the Fed again towards a hawkish stance, which may sluggish liquidity inflows and mood Bitcoin’s rally to $120k.
However, with Bitcoin presently testing the $106K–$110K zone, Eshani believes a robust breakout and sustained shut above this vary may affirm a brand new bullish cycle.
“A decisive reclaim of this vary may mark the start of a brand new upside and open the door for BTC to retest its earlier highs and even head greater towards $130,000 earlier than year-end, particularly if ETF inflows decide up once more.”
As Moreno summarized, the present market part doesn’t really feel thrilling, however traditionally, it’s the place robust fingers begin constructing positions.
The submit Historic 2020 Liquidity Trend Flashes Again – Analysts Tip Bitcoin for $120K Breakout appeared first on Cryptonews.
