$BTC
Bitcoin is currently trading just 4% below its all-time high of $123,000, with signs pointing to renewed bullish momentum driven by technical breakthroughs and supportive macroeconomic factors. Crypto strategist Doctor Profit highlights that Bitcoin has recently broken through a longstanding diagonal resistance line on its monthly chart—a barrier that had repeatedly rejected price advances from November 2024 through February 2025. This breakout was confirmed with a successful retest near $114,000, accompanied by strong bullish impulses, indicating readiness for further upward movement and increasing optimistic sentiment in the market.
Beyond technicals, positive developments in global trade relations are bolstering Bitcoin’s outlook. The White House announced a major US-Europe trade agreement valued at $750 billion in US energy exports and $600 billion in EU investments, easing tariff pressures that had impeded momentum in both Bitcoin and equity markets. This trade deal has been interpreted as a catalyst for risk appetite, contributing to the optimistic outlook for Bitcoin.
On a macroeconomic level, Doctor Profit underscores the influence of the M2 money supply on Bitcoin’s price dynamics. Historical data show Bitcoin rallied 800% during a 25% expansion in M2 in 2020 amid pandemic stimulus efforts. Although the Federal Reserve is engaged in quantitative tightening, M2 has still grown by 2.3% since the start of 2025. Doctor Profit estimates Bitcoin gains of approximately 30-35% for each 1% increase in M2. Notably, M2 expanded 0.63% between May and June 2025, and considering Bitcoin’s typical 60 to 90-day lag in responding to M2 changes, this could fuel a 15-17.5% price increase in the near term, pushing Bitcoin above $130,000.
Investors should note that no interest rate cuts are expected at the imminent Federal Open Market Committee (FOMC) meeting, a factor that could influence near-term volatility but not necessarily impede the identified bullish technical and fundamental drivers.
