Can Bitcoin Price Still Hit $140,000? What The Global M2 Money Supply Says

Overview

The Bitcoin price outlook is currently a topic of significant debate among market analysts, particularly regarding the possibility of reaching $140,000. Despite a recent downturn and fluctuating prices, some analysts believe that the correlation between Bitcoin and the global M2 Money Supply may support a potential price surge.

Bitcoin Price Outlook and Global M2 Money Supply

Market analysts are closely monitoring Bitcoin’s price trajectory as they evaluate the potential for the cryptocurrency to reach the $140,000 mark. The recent price fluctuations, alongside a notable decline, have led to skepticism about the feasibility of such a dramatic increase. However, one analyst, known as ‘MoneyLord’, emphasizes the connection between Bitcoin and the global M2 Money Supply, suggesting that it could facilitate a significant price increase.

MoneyLord has highlighted that recent disconnections between Bitcoin’s price movements and M2 data should not be interpreted as a failure of predictive models. Instead, he attributes these discrepancies to aggressive market interference and heightened stress within global financial systems. In a technical report shared on X, MoneyLord argues that Bitcoin would have likely maintained its alignment with global liquidity growth had it not been for the manipulative actions and insolvencies affecting major market players.

MoneyLord further posits that the shocks experienced in the market have temporarily suppressed Bitcoin’s price expansion, contributing to its recent decline and lack of momentum. However, with market conditions appearing to stabilize, he believes Bitcoin is on the verge of realigning with the trends set by the global M2 Money Supply. This situation is seen as a delayed reaction rather than a failure of the cycle, indicating that a price increase might be on the horizon.

According to MoneyLord, if Bitcoin begins to align with M2 data, it could potentially reach a price above $140,000 sooner than anticipated. Supporting this bullish perspective, accompanying charts illustrate a continued rise in global liquidity, which is represented visually.

Currently, Bitcoin is trading near $90,000 after experiencing a decline of more than 6% this month. For Bitcoin to reach the $140,000 level, it would need to gain at least 55%, surpassing its previous all-time high of over $126,000 by more than 10%.

Bitcoin’s Resilience Amid Market Challenges

Despite the recent market sell-offs that have led to considerable liquidations and shaken trader confidence, Bitcoin has demonstrated resilience. Analyst Don notes that Bitcoin has rebounded after these sharp sell-offs, with bullish sentiment returning to reclaim critical support levels. This recovery has allowed Bitcoin to resume trading within an ascending triangle pattern, which is often seen as a precursor to potential price breakouts.

The triangle pattern has defined boundaries, with an upper limit around $94,324 and a lower limit near $89,241. The price movements within this formation suggest that Bitcoin is consolidating and potentially building the necessary momentum for a breakout.

From author

The ongoing discussions surrounding Bitcoin’s price movements in relation to the global M2 Money Supply illustrate the complexities of market dynamics. Analysts are divided on the predictive value of M2 data, yet many acknowledge its historical significance in understanding liquidity trends. As Bitcoin continues to navigate through these turbulent market conditions, the interplay between macroeconomic factors and cryptocurrency performance will remain a critical area of focus for traders and investors alike.

Impact on the crypto market

• Analysts are divided on the predictive value of M2 Money Supply for Bitcoin’s price.
• Recent market fluctuations have led to skepticism about Bitcoin reaching $140,000.
• MoneyLord’s analysis suggests a potential alignment between Bitcoin and M2 trends could facilitate upward price movement.
• Bitcoin’s resilience amid sell-offs indicates a possible consolidation phase for future growth.
• The ascending triangle pattern may signal a breakout opportunity for Bitcoin.
• A rally towards $140,000 would set a new all-time high for Bitcoin, surpassing previous peaks.