Key Insights:
- Global M2 money supply is rising sharply, potentially signaling Bitcoin’s price increase.
- Bitcoin is testing key resistance zones, with strong selling pressure near $88,000.
- Bitcoin’s consolidation in a symmetrical triangle suggests an imminent breakout toward $150,000, signaling continued bullish momentum.
The global M2 money supply is increasing at a rapid pace, leading to debates as to the likelihood of the same for Bitcoin. With more liquidity in the traditional financial markets, these sentiments may lead to a higher tag for Bitcoin as a store of value. As a result, experts are paying much attention to the situation, as they believe that Bitcoin price could start a rally soon.
Global M2 Money Supply Surge and Bitcoin Potential Jump
Analyst Vivek has observed the M2 money supply crossing a new high and pointed out that this might impact Bitcoin price. With soaring global money supply levels, BTC may become an inflation hedge asset.
Historically, the top crypto tends to mirror money supply shifts and the current increase in global monetary base M2 could produce similar upward pressure on Bitcoin prices. On the analyst’s chart, both Bitcoin and the M2 money supply are on an upward rise, and the analyst noted that this may result in an increase in Bitcoin price soon.
With the global M2 money supply expanding rapidly, the analyst is forecasting that Bitcoin will likely follow this upward trend. This was evident in the recent price movement, which has gained over 2% in the last one day trade. BTC price could rise further if market reactions match the ongoing growth of liquidity.
Bitcoin Price Testing Key Resistance Levels
Meanwhile, Analyst Ali Martinez has also provided a chart revealing that Bitcoin price has strong resistance at 88k to 91k. The analyst determined three key levels of resistance: The 200-day moving average, the mid-level consolidation area, and the 100-day moving average.
Notably, the 200-day moving average is a long-term trend line, and based on where its position is located in relation to the price, Bitcoin may have difficulty in piercing this level without a significant amount of force behind it. Moreover, the mid-level of the consolidation channel also serves as a psychological level for many traders, creating a significant barrier for an upward breakout.
Martinez emphasized that despite BTC trading above $88K, it has failed to break these resistance levels. Strong buying pressure is needed to overcome this zone and flip it into support. If Bitcoin closes convincingly above $91K, the next leg upward could begin.
If resistance holds, however, the price could consolidate or retest support levels below $85,000. Until then, the structure remains neutral-to-bullish, with volume still below breakout levels.
Bitcoin Symmetrical Triangle Formation and Breakout
Based on analysis by CRYPTOELLITES, Bitcoin has formed a series of symmetrical triangles, a classic continuation pattern. These triangles point to consolidation with decreasing volatility and, as such, call for a breakout soon. The price has been moving up in a series of higher lows and lower highs pattern, indicating some consolidation.
Bitcoin’s pattern of higher lows and lower highs shows consolidation, and if the breakout happens to the upside, the analyst expects a rally toward $150,000. Momentum indicators such as RSI are also showing bullish divergence, reinforcing this thesis.
Further supporting this trend, Metaplanet’s recent acquisition of 330 BTC triggered strong buying interest, pushing BTC briefly past $87,000. Technical indicators such as MACD and RSI are in bullish territory, and the price remains above major support zones.
Traders are watching key levels like the “Hammer Line” on the weekly chart, which may serve as a breakout confirmation point. Institutional investment and macroeconomic tailwinds continue to fuel market confidence going into May.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
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