- Bitcoin struggles below $124,000, holding $121,000 support as traders await rebound or drop.
- Arthur Hayes highlighted that global easing may extend Bitcoin’s bull run beyond its halving cycle.
- Analysts expect liquidity growth and rate cuts to fuel a stronger Bitcoin recovery ahead.
Bitcoin again met resistance this week following its failure to record revenues at the higher control level of 124,000. The digital asset, which has been trading in a relatively small range, currently hovers at a very essential support level at $121,000. According to the analysts, at this level, BTC can begin a recovery. Otherwise, a bigger correction may push the price down to to the level of $117,000.
As analyst Ted has mentioned, BTC made multiple attempts to penetrate the resistance but each attempt was denied. He estimates the $121,000 area is probably going to be experimented in the near future. An effective predation would bring fresh customers and renew short-term momentum. A collapse, however, can be indicative of lost confidence by the traders on a temporary basis.
Source: X
Analysts Dismiss Fears of a Bitcoin Bear Market
Even with the downturn, the sentiment regarding Bitcoin is mostly favorable. Some analysts in the market project that the bull cycle will persist till the good times, as eligible by the global monetary conditions. One of them is Arthur Hayes, chief investment officer and co-founder of Maelstrom who says that there is no probable world into the bear market in Bitcoin in the near future.
Also Read: Bitcoin Institutional Demand Increases as Analysts Predict Surge to $135,000
In his latest essay, Long Live the King! that Hayes wrote, he has clarified that his previous bear markets to Bitcoin were in fact due to monetary tightening rather than the four-year cycle of halving. He referred to 2014, 2018 and 2022, when aggressive central bank policies sent BTC falling by as much as 80 percent of its high.
An influential Bitcoin phenomenon is halving which cuts back on mining compensations around every four years. The result of this process is contraction of supply, and a huge bull rush usually ensues, with subsequent profound corrections afterward.
According to Hayes, the present-day environment is dissimilar. International economies are relaxing their policies rather than contracting them. According to him, there is an acceleration in the rate of money supply, which will foster the conditions in favor of the risk assets such as BTC . To him, the four year cycle might not be applicable.
Global Rate Cuts Fuel Bitcoin’s Bullish Outlook
In September 2025, the Federal Reserve of the U.S reduced interest rates by a margin of 25 basis points down to an average of 4%. It is believed that another 100 basis point cut in the rate will be witnessed in the coming year.
More aggressive stimulus measures can also be borrowed by Japan. The new prime minister of the country is in favor of Abenomics which is a policy characterized by ultra-loose monetary strategies. According to Hayes, this would create a situation in which the international liquidity will be multiplied, perpetuating the current bull investment.
Hayes provide the examples of President Trump, born in the U.S., who wants to make the economy hot after he is elected to power. He mentions expansion in order to decrease borrowing, and decrease in the cost of housing, in order to free up locked-up housing equity.
The role played by China is also considered encouraging, and not strong as it used to be in past bull runs. As Hayes observed, Beijing is making efforts to put an end to deflation instead of running dry. He said this position would avoid significant changes to the amount of currency in the world and would enable the BTC trend to persist.
Hayes described it by summing it all up as listening to our monetary masters in Washington and Beijing. They show clearly enough that money will be cheaper and abundant. Thus, Bitcoin is still gaining momentum towards this very likely future.
On the assumption that the $121,000 support holds, there should be a bounce at the levels of $123,000 in the near future. In case the break is done, the airer zone of breakeven comes at around $117,000. In any case, the future success of Bitcoin is still pegged to the boom of money across the world.
Also Read: Bitcoin Surges Past $125K Backed by $2.2B ETF Inflows and Rising Spot Activity
