Bitcoin: Why a dip to $66k might be necessary for BTC’s next move

• Bitcoin poised to retrace to $66K before a bounce.
• Global liquidity to potentially continue rising up to 2026.

Bitcoin [BTC] was navigating a critical price range at press time, with market watchers anticipating its next move. The $66.8K to $67.1K zone on Bitcoin’s profile chart shows fewer positions, indicating a price gap.

Historically, price tends to gravitate toward such gaps to fill them before continuing a trend.

Bitcoin’s path forward hinges on whether it fills this gap before pushing higher or retraces further to gather liquidity.

Source: Hyblock Capital

BTC heading towards a gap

BTC’s price action shows a slight correction after hitting the $70K level, a major milestone for the cryptocurrency.

The retracement suggests that Bitcoin is gathering momentum for its next leg up, but first, it may need to fill the gap in the $66.8K-$67.1K range.

This zone lies below a key double bottom pattern on the 6-hour timeframe of the BTC/USDT pair, reinforcing the potential for upward movement once the gap is filled.

The weekly chart remains bullish, with the structure broken to the upside, indicating strong market support.

Source: TradingView

Traders are closely watching this price action, with many expecting Bitcoin to hold at the $70K-$71K level, which would likely trigger a move into price discovery and a new all-time high.

The filling of the gap in this price range could also act as a liquidity grab, allowing Bitcoin to gather strength before making a decisive move higher.

A successful breakout past $70K would signal the start of a new bullish phase, with Bitcoin potentially entering uncharted territory.

Profitability and global M2 supply 

The Bitcoin Average Profitability Index further supports this outlook. Currently, the index stands at 202%, meaning the price is more than double the realized price.

Historically, investors tend to start taking profits when this index rises above 300%, but for now, it suggests that the market is not yet in heavy profit-taking mode.

This leaves room for BTC to continue its upward trajectory after filling the price gap, with long-term holders still optimistic about higher price levels.

Source: CryptoQuant

In addition to these indicators, the Global M2 money supply data offers insights into Bitcoin’s broader potential.

During previous bull cycles, such as in 2016-2017, the expansion of the M2 supply coincided with significant Bitcoin price growth.

In 2021, a similar expansion occurred, but external factors like the collapse of FTX and rising interest rates dampened Bitcoin’s momentum.

Read Bitcoin’s [BTC] Price Prediction 2024-25