Bitcoin Enters Third Phase Of Liquidity Expansion – On Track For ATH?

Bitcoin is trading above the $95,000 level as bulls try to reclaim control and push toward six figures. After a strong rebound from its April lows, BTC has entered a tight consolidation range between $92K and $96K, with market participants watching closely for a decisive breakout. A move above the $96K mark could trigger the next leg up, potentially opening the door to a test of the long-awaited $100K milestone.

However, macroeconomic risks remain elevated. Growing fears of a recession, coupled with ongoing trade tensions between global powers, have added uncertainty to the broader market. This makes the upcoming sessions especially crucial for BTC’s short-term direction.

Top analyst Axel Adler shared insights pointing to a deeper structural development beneath the price action. According to Adler, the market is currently in the third phase of liquidity expansion — a phase characterized by increasing on-chain activity, rising exchange flows, and renewed investor engagement. His Bitcoin Liquidity Index, which incorporates key on-chain network metrics alongside normalized exchange data, is trending upward. This phase, if sustained, could support a breakout and propel BTC into uncharted territory. The coming days will likely define whether the breakout materializes — or if BTC continues to range.

Bitcoin Pushes Higher as Liquidity Expansion Signals a Potential Breakout

Bitcoin continues to lead the crypto market, now trading just below the $96,000 level as bulls attempt to reclaim control. After last week’s rebound, momentum remains on BTC’s side—but time is ticking. Bulls must push beyond $100,000 soon to confirm that the current move is not just a relief rally, but the beginning of a broader euphoric phase. Without a decisive breakout, fading momentum could drag BTC back into consolidation or trigger another correction.

Despite the cautious optimism, Bitcoin is showing resilience. Healthy retests of key support zones between $90,000 and $92,000 have strengthened bullish conviction. The broader market has followed BTC’s lead, with altcoins beginning to wake up in tandem.

Axel Adler supports the bullish thesis, noting that Bitcoin is now in the third phase of liquidity expansion—a critical turning point historically associated with significant price movement. According to Adler, this liquidity index combines all major on-chain metrics with exchange data. Importantly, each component is normalized to remove distortions from BTC/USD exchange-rate volatility, giving a clearer view of structural market health.

Adler emphasizes that monthly liquidity readings are rapidly approaching quarterly levels. If no external “Black Swan” events derail momentum, he outlines three likely scenarios: a test of the $100K level, a retest of previous all-time highs, and ultimately a breakout into new highs. For now, Bitcoin is holding steady, but the next move could define the rest of the cycle.

BTC Price Outlook: Bulls Push Toward Key Breakout Levels

Bitcoin is currently trading at $95,800 as bulls continue their attempt to reclaim higher ground and confirm the next leg of the rally. The immediate target is the $96,000–$98,000 zone, which has acted as a major resistance area over the past several days. A clean breakout above this range would likely open the door for a retest of the psychological $100,000 level, considered by many as the threshold for a full-scale market breakout.

Market sentiment remains cautiously optimistic, supported by strong on-chain activity and whale accumulation. However, the battle isn’t over yet. Bulls must defend the $90,000 support level to maintain structural strength and avoid invalidating the recent uptrend. A drop below this level could trigger short-term weakness, pushing BTC back toward lower demand zones in the $85,000–$88,000 region.

As long as Bitcoin holds above $90K and reclaims $96K–$100K, the technical setup favors continuation to new highs. Traders are watching closely for signs of increased volume and momentum to confirm the breakout. Until then, BTC remains in a critical consolidation phase—one that could either launch the next major move or stall the current rally.

Featured image from Dall-E, chart from TradingView