According to an analysis shared on X by crypto analyst Sykodelic, the confusion is due to a structural change that separates this cycle from every major Bitcoin rally that came before it. The difference is not psychological or technical in the usual sense of a four-year cycle.
Liquidity Difference In This CycleInterestingly, that pattern of Bitcoin’s price action following the liquidity index has repeated in every previous bullish cycle. This time, the structure is inverted. The liquidity index did not peak around Bitcoin’s most recent all-time high above $126,000. Instead, the liquidity has been ranging and only recently began stabilizing back around levels seen during the 2022 bear market bottom.
One of the most unusual aspects of this cycle is how far Bitcoin has already traveled despite limited liquidity support. Sykodelic points out that Bitcoin advanced from the $15,000 region to well above $100,000 while global liquidity was range-bound, a trend that has never happened before.
