Analyst: Multiple Favorable Resonances, Bitcoin Aiming for $130,000
Bitcoin broke through the long-term trend line resistance since reaching the historical high in 2021, and analysts have locked in the next key target at $130,000 after considering technical interpretations, macroeconomic factors, and geopolitical signals.
This technical breakthrough argument is also supported by multiple favorable factors. These include the $1.35 trillion trade agreement reached between the US and Europe last weekend, easing global trade tensions; the M2 money supply in the US has increased by 2.3% this year, with significant acceleration in growth during May and June; and the ongoing daily inflow of funds into ETFs far exceeds the supply of Bitcoin mining.
The market reacted quickly and strongly. Following the announcement of the US-Europe trade agreement last weekend, Bitcoin's price briefly surged above $119,000, while BNB set a new historical high of $850.
Analyst Doctor Profit pointed out that this breakthrough is particularly significant because it has encountered this resistance level four times between November 2024 and February 2025, and the effective breakout and successful retest in July indicate that a more sustained upward trend is forming.
From the perspective of macro liquidity, the increase in M2 money supply has a significant correlation with Bitcoin prices. Historical data shows that a 1% increase in M2 typically corresponds to a 30%-35% increase in Bitcoin.
If this pattern continues, the 2.3% M2 growth since the beginning of the year could drive Bitcoin to rise another 15%-17.5%, thereby reaching the $130,000 target. Although the Federal Reserve may maintain interest rates this week, the market has already felt the warmth of an improving liquidity environment.
It is worth noting that although Bitcoin's short-term performance is slightly inferior to altcoins like Ethereum, its core advantages remain strong. Spot ETFs continue to serve as a "money-absorbing black hole," with institutional investors like BlackRock absorbing several times the amount of Bitcoin production.
This fundamental change in the supply and demand structure is building a more solid value foundation for Bitcoin. When technical breakthroughs meet macro improvements, the market seems to be brewing a more explosive upward trend.
What do you think of the analyst's view that Bitcoin is about to hit the $130,000 target? Is the technical breakout just a short-term market resonance, or the prologue to a new bull market? Share your views and predictions in the comments section!
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