Bitcoin has experienced a significant pullback, dipping below $110,000 after reaching a new all-time high of $111,900 just days prior. This correction, which saw prices briefly touch $107,500, has left investors wondering if the recent Bitcoin rally is sustainable. However, some analysts believe the underlying bullish structure remains intact, pointing to the Global M2 Money Supply as a key indicator.
Global M2 Money Supply as a Bullish Signal
Crypto analyst Colin highlights the Global M2 money supply, representing global liquidity, as a reason for continued optimism. Historically, Bitcoin has closely mirrored the M2 trend, suggesting further potential gains.
- Correlation with Bitcoin: Strong statistical correlation (93% in 1½-year window) between Global M2 and Bitcoin price.
- Healthy Retracement: Current pullback viewed as a healthy retracement within a larger upward trend.
- Support Levels Holding: Bitcoin holding above the $102,000-$104,000 consolidation level is a positive sign.
- Social Sentiment: Social sentiment remains skeptical despite the new ATH, suggesting room for further upside before market euphoria peaks.
Impact on the Crypto Market
The correlation between the Global M2 money supply and Bitcoin's price suggests a fundamental link between global liquidity and cryptocurrency valuations. This connection implies that macroeconomic factors play a significant role in driving Bitcoin's price movements. Furthermore, the recent pullback, while concerning to some, may represent a necessary correction before another leg up in the bull market.
- Potential for institutional investors to view Bitcoin as a hedge against inflation and currency debasement.
- Increased awareness of macroeconomic indicators affecting crypto valuations.
- Possible shift in investment strategies to align with global liquidity trends.
Future Outlook
Based on the analysis, if the correlation between the Global M2 money supply and Bitcoin continues, we could see Bitcoin breaking above current levels. Projections suggest a potential move towards $130,000 and beyond.
- Potential for Bitcoin to reach $130,000+ if M2 correlation holds.
- Increased scrutiny of macroeconomic factors when analyzing Bitcoin.
- Analyst Colin's previous accurate predictions lend credibility to this outlook.
- CBBI indicating that the market is not yet at its euphoric peak leaves room for further growth.
In conclusion, while the recent price correction may have caused some concern, the underlying data, particularly the Global M2 money supply, suggests that the **Bitcoin** rally may still have significant room to run. Investors should closely monitor macroeconomic indicators to better understand potential price movements.
إرسال تعليق