Capital Continues to Flow from Bitcoin to Ethereum
Bitcoin once again failed to stay above the critical mark of $113,000, falling to $111,139 at the time of publication, which is 1,6% lower than in the last 24 hours.
The move has led to speculation that the leading digital asset has reached the peak of its cycle, with signs of capital rotation into Ethereum becoming increasingly apparent.
Renowned crypto analyst Ali Martinez has drawn attention to a worrying technical signal on the weekly Bitcoin chart, namely a bearish divergence between the price and the relative strength index (RSI).
Bitcoin is making upper highs while RSI is making lower lows. This is the same divergence that was seen before the 2021 cycle peak! — he wrote.
Martinez noted that this situation is reminiscent of the divergence seen just before the market peak in 2021, when Bitcoin reached $69,000, after which a prolonged bear cycle began, also known as the “crypto winter”.
According to CryptoQuant, Bitcoin’s illiquid supply has risen to historically high levels, while its liquid supply has fallen sharply. Essentially, this means that more Bitcoin is locked in wallets whose owners are not actively selling them, reducing the available market supply and supporting higher prices.
CryptoQuant analysts claim that Bitcoin is in a «fragile bull trend» that is structurally supported by long-term holders but is prone to sharp pullbacks. They predict two possible paths.
First, if the illiquid supply continues to grow, in 2025 Bitcoin could reach $150,000. This makes BTC one of the best cryptocurrencies to buy in 2025. However, if liquidity returns due to a major sell-off, BTC could sharply correct towards the $90,000 to $100,000 range.
