My flow analyzer, which functions similarly to a liquidity tracker, currently shows a daily reading of 52.08. For optimal confirmation of a strong bull trend, I need this value to rise above 70. Comparing this to the last bull run, price levels around 91k coincided with my flow analyzer peaking at 73.72 when Bitcoin’s price was around 102k. After that peak, the flow analyzer sharply declined to 13.93, signaling the end of that rally.
Since hitting 13.93, my flow analyzer has been steadily building momentum and is now at 52.08, indicating that smart money has been accumulating. This steady rise suggests that as Bitcoin continues to surge upward, we’re likely to see a series of minor corrections along the way. These corrections aren’t bearish—they’ll serve to fuel further upward movement by allowing liquidity to reset and attract more smart money involvement. Each dip will help sustain the upward trend rather than end it.
Alternatively, if smart money decides to move aggressively, we could see a sharp spike upward without prolonged corrections, resulting in a rapid price surge. This scenario would occur if large players choose to front-run the market, driving price higher in a short timeframe to leave retail traders behind.
Key Takeaways:
1. Flow Analyzer Trend: A rising flow analyzer from 13.93 to 52.08 indicates increasing liquidity and potential for higher price levels.
2. Target Reading: Once the flow analyzer surpasses 70, it historically signals a strong bull market continuation.
3. Minor Corrections Expected: As Bitcoin rises, expect small pullbacks that will help fuel further upward momentum by resetting liquidity and allowing the trend to gather strength.
4. Alternative Scenario: If smart money moves aggressively, Bitcoin could experience a large, rapid spike, bypassing gradual corrections altogether.
In summary, this setup points to a bullish continuation with either gradual, steady progress or a sudden explosive move upward, both of which signal strong upside potential for Bitcoin.