Deja Vu: Bitcoin’s 2020 Liquidity Surge Repeats – Analysts Predict $120K Mega Rally
Bitcoin's flashing a familiar signal—one that last appeared before its historic 2020 bull run. Now, liquidity patterns are mirroring that breakout setup, and top analysts are betting big.
The $120K Target: Why This Time Isn't Different
Market depth metrics show whales accumulating at levels unseen since Q4 2020. Derivatives traders are piling into calls at the $120K strike—Wall Street's playing catch-up (again).
Liquidity Tsunami Ahead
Tether's printing presses just fired up for the first time in 18 months. Last time this happened? BTC rallied 400% in 12 weeks. Cynics whisper about 'QE for crypto bros'—but the charts don't lie.
One hedge fund manager quipped: 'We're either headed to six figures or another 'Crypto Winter'—place your bets.' Meanwhile, Bitcoin's volatility crushes traditional assets... as usual.
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 once again dropped into its lower historical range NEAR 13.
Liquidity Pattern Has Appeared Before Every Bitcoin Surge — And It's Back
“We're witnessing a liquidity configuration that has only appeared a handful of times since 2020, and each instance marked a pivotal moment for Bitcoin's trajectory.” – By @MorenoDV_ pic.twitter.com/vWKcCkyn55
This level, he said, has reliably marked accumulation zones and market bottoms in past cycles.
“Each time SSR has returned to this zone, Bitcoin was trading quietly before staging a strong rebound,” he wrote, describing the pattern as a “liquidity configuration that has only appeared a handful of times since 2020.”
Further supporting the bullish observation, Moreno pointed to data from Binance, where stablecoin reserves are rising while BTC reserves continue to decline.
This divergence, he said, suggestsa trend that typically emerges during phases of seller exhaustion and structural capitulation, when “weak hands exit and strong hands begin to accumulate quietly.“
“From a risk/reward perspective, these moments tend to offer asymmetric opportunities: downside appears limited, while upside expands as liquidity rotates back into BTC,” Moreno added.
Falling Wedge Forms as Bitcoin Coils for $120K Move
Complementing the liquidity narrative, market technician Bitcoinsesus observed that Bitcoin is currently coiling within a falling wedge pattern, a setup that often precedes sharp bullish reversals.
“A breakout above $106,000 could trigger a strong MOVE toward $120,000 or higher,” he said.
Farzam Ehsani, co-founder and CEO of VALR, also told Cryptonews that the easing macroeconomic uncertainty in support of positive on-chain signs could sustain capital inflows into the crypto market.
“The macro uncertainty that loomed over markets in recent weeks finally seems to be easing, opening the pathway for a broader rebound,” Ehsani said.
“For the crypto markets, where liquidity and capital inflows had thinned significantly, the return of confidence signals a potential inflection point in the current cycle.”
VALR CEO Says Next Week’s CPI Data Key for $120K Breakout
Ehsani pointed out that progress toward resolving the U.S. government shutdown and the President’s plan to distribute $2,000 checks using tariff proceeds have already helped lift the crypto market by 4.5% in the past 24 hours.
He cautioned, however, that the upcoming Consumer Price Index (CPI) release could determine whether the rally sustains or stalls.
“The CPI data could be the last tailwind for the market’s recovery or the next headwind that triggers a sell-off,” he said.
VALR CEO cautioned that sticky inflation might push the Fed back toward a hawkish stance, which could slow liquidity inflows and temper Bitcoin’s rally to $120k.
However, with Bitcoin currently testing the $106K–$110K zone, Eshani believes a strong breakout and sustained close above this range could confirm a new bullish cycle.
“A decisive reclaim of this range could mark the beginning of a new upside and open the door for BTC to retest its previous highs and even head higher toward $130,000 before year-end, especially if ETF inflows pick up again.”
As Moreno summarized, the current market phase doesn’t feel exciting, but historically, it’s where strong hands start building positions.
