Bitcoin price action is not random — it is closely tied to liquidity and macro conditions.
When liquidity increases:
• Risk appetite improves
• Bitcoin attracts capital
• Volatility expands to the upside
When liquidity tightens:
• Capital moves to safety
• Bitcoin faces selling pressure
• Consolidation or pullbacks occur
This is why monitoring interest rates, the US Dollar, and economic data is essential for BTC traders.
Successful Bitcoin trading starts with understanding the bigger picture.
Do you focus more on macro analysis or technical charts? 👇
