Bitcoin crossed $114,000 on Thursday, with Ethereum pushing above $4,400 and XRP reclaiming the $3 mark. Dogecoin also joined the rally, hitting $0.25 after a 16% gain over the past week.

Liquidity Trends Offer a Bullish Signal

While prices move higher, analysts at CF Benchmarks argue that Bitcoin may still be undervalued. They highlight a growing gap between U.S. M2 money supply and Bitcoin’s price — the widest divergence since August 2024. Historically, similar setups in 2016, 2019, and 2021 preceded major rallies, as liquidity eventually caught up with crypto valuations.

Over the past decade, Bitcoin has tended to track M2 growth with a short lag. If that relationship holds, analysts believe liquidity support could boost Bitcoin further into the final quarter of the year.

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Technical Picture Still Fragile

Not all signals are straightforwardly bullish. FxPro’s Alex Kuptsikevich told CoinDesk that Bitcoin is locked in a delicate uptrend, with $112,000 acting as the first key support level. He identified $115,000 — just above the 50-day moving average — as the real line in the sand. A sustained break higher would strengthen the case for a broader uptrend, while failure could leave BTC trailing behind record-high equity markets.

For now, optimism around Fed easing and historical liquidity patterns are tilting sentiment to the bullish side. But technical traders warn the market still has work to do before declaring victory for the bulls.

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