Bitcoin displays signs of recovery against fluctuating global money supply and technical pattern formation. Economic challenges have not deterred investor focus on the cryptocurrency.
Global Money Supply Growth and Bitcoin
The Global M2 money supply continues to rise, suggesting the potential for Bitcoin to reach new all-time highs. M2 includes cash, checking and savings accounts, as well as mutual funds. Typically, when M2 rises, Bitcoin shows price increases roughly 12 weeks later.
Formation of the Cup-and-Handle Pattern
Bitcoin's chart is forming a cup-and-handle pattern on the daily timeframe. This pattern, along with the increasing money supply, supports bullish sentiments among investors, including institutional ones. Spot Bitcoin ETF flow data indicates inflows are rising despite tensions in the Middle East.
Price Analysis and Key Resistance Levels
Bitcoin has successfully rebounded after a recent crash that saw over $1.2 billion in crypto liquidations. The price rebounded after hitting a key moving average and continues to move toward completing the cup-and-handle pattern. If the price breaks above its previous high, a rally to $168,000 is possible. Key resistance levels to maintain are around $107,200 and the psychological $110,000 level.
Despite challenging economic conditions, Bitcoin shows signs of recovery, which interests investors. The future relies on maintaining price levels and overall global money supply.
