AE Global Liquidity Oscillator: Weakening Signals and Implications for Bitcoin's Rally

The AE Global Liquidity Oscillator has proven itself as a critical tool for spotting shifts in liquidity trends, which have been reflected in the recent surge of risk-on assets like Bitcoin.

As noted in this week’s liquidity update, the overall liquidity environment continues to stagnate at current levels.

Same stagnation is mirrored in the AE Global Liquidity Oscillator, which shows a progressively weakening score.

This gradual erosion in liquidity-driven momentum could signal a potential turning point.

While Bitcoin’s recent rally has largely been fueled by speculation - evidenced by the flatlining Global Liquidity Index and the weakening Oscillator - bull markets often defy rational explanations.However, if the Oscillator's downward trend persists, this speculative-driven divergence may become unsustainable, raising the likelihood of corrections or heightened volatility until our liquidity model catches up.

For now, it's critical to monitor liquidity signals closely in order to navigate this evolving market landscape.