The crypto market report examines M2 money supply expansion and key technical levels amid shifting market sentiment.
Liquidity and M2 Money Supply Analysis
Influential crypto analyst Dr Profit highlighted that the M2 money supply shows a strong historical correlation with Bitcoin. The analysis shows that liquidity plays a crucial role in market behavior and price movements. Market participants must understand that increased M2 does not trigger immediate market gains. Official data on inflation and broader economic trends are essential for proper analysis. The historical trends suggest that M2 expansion can precede market rallies if priced in by major players.
Market Strategy and Technical Levels
The report outlines a detailed market strategy based on technical indicators and price action. The expert discussed a key weekly EMA50, known as the Golden Line, which has served as a critical support level. Price action around 87-88k has generated profitable short setups for early followers. The analysis explains that a close above this support zone could force traders to adjust positions. Short setups have yielded solid gains, and the report outlines a strategy for profit-taking. Traders who followed the setup witnessed favorable returns near the 87.4k region.
Outlook and Bearish Scenarios
The report offers a long-term outlook that foresees a bull trend resuming in May or June, with targets between 120k and 140k. The analysis anticipates two bearish scenarios. One scenario targets a price range of 70k to 74k, serving as an accumulation zone. The other scenario considers a more severe drop towards the 50k region. Market participants are advised to monitor technical levels closely and adjust strategies accordingly.
An overview of key levels and scenarios helps better understand current market conditions and their further development.
