The total global M2 money supply is above 100 trillion dollars, and this increases the demand for Bitcoin in view of inflation.
A bullish flag pattern is pointed out by technical analysis, and the possible breakout is above the current levels.
Analysts predict that the price of BTC will be worth $119000 on the basis of increased liquidity and persistent stockpiling.
On July 2, Bitcoin increased by 2.37% to reach a price of $108,434 because traders were reacting to the rising global liquidity. Cryptocurrency is currently below its highest price by a bare 3.13%, sparking a revival in interest in the markets.
The increase in the price of Bitcoin has also been accompanied by a record increase in the global M2 money supply that has recently exceeded the figure of two hundred trillion dollars. In the past, the more the money supply has increased, the demand for Bitcoin has gone higher, as investors aim at hedging against the devaluation of currency.
Accumulation Suggests Ongoing Concern
According to market analysts, the hoarding of BTC started in February. This piling-up phase is normally preceded by a breakout, as witnessed in the past market cycles. A big breakout is now the scene that traders are keenly monitoring since the forceful attempts to purchase continue.
Known crypto analyst Ash Crypto observed that BTC prices and money supply patterns have a connection, and it may increase to reach 175,000. MartyParty, another analyst, predicts that Bitcoin is going to trade in the neighborhood of 145,000 to 146,800. They have an outlook that is related to the effects on the liquidity across the market.
Bitcoin might also gain momentum because of the recent all-time high in the S&P 500 index. Analysts also predict that a good equity market will also flow into crypto markets, which will also contribute to the optimistic sentiment of Bitcoin.
Increased liquidity leads to a good market opinion
With the rise of the money supply, there have been increases in apprehensions concerning inflation. It is therefore leading investors to seek a haven in Bitcoin. Analysts say that the Bitcoin price has moved alongside the M2 supply, and this presents a good reason to expect the indicator to move upwards in the future.
The BTC chart is in a bullish flag pattern, and it means additional upward movement. In case the price cracks the existing resistance, it can rise up to $119,000, which is the projected value. This would be the new ATH, which would be supported by the market structure and the great support of both the 50-day and 200-day moving average lines.
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