Bitcoin Rally Faces Potential Risks Amid Liquidity Concerns and Possible Recession Impact

Key Points

1. Bitcoin's surge to $120,000 is at risk of collapse due to a looming liquidity crisis caused by an upcoming recession.

2. Historical data shows Bitcoin's vulnerability during liquidity crises, such as its drop from $69,000 in late 2021 to below $16,000.

3. Macro analyst Henrik Zeberg warns that a recession could lead to a liquidity squeeze, potentially causing Bitcoin to fall to mid-$20,000 levels.

4. Technical indicators suggest weakening price momentum for Bitcoin, signaling potential risks ahead.

5. Experts highlight the possibility of an 80% correction across cryptocurrencies by 2026 if liquidity conditions worsen.