Bitcoin (BTC) shows signs of upward dynamics and was traded at $ 85,500 on Tuesday after recovering 7% last week. The global amount of money has increased and analysts expect a rally, with some even $ 95,000 for BTC. Since more liquidity flows into the system, BTC and gold could experience large movements.
The Bitcoin course has always correlated with the global M2 money quantity, and the latest global liquidity attracts attention. In February, the entire amount of M2 money from the USA, EU, Japan and China was $ 90.21 trillion.
Global M2 Money Supply predictive correlation to Bitcoin price movements
In an effort to have maximum accuracy with the correlation, I have calculated all the most-suggested scenarios of various M2 offsets, and here are the mathematical results.
It is irrefutable.
I will now… pic.twitter.com/qe9lVYKvSX
— Colin Talks Crypto
(@ColinTCrypto) March 17, 2025
This increase in the money supply is good for both Bitcoin and gold, since these assets have developed well under such conditions. Historical trends show that when the M2 growth accelerates, the Bitcoin price follows and benefits from liquidity.
At the beginning of 2020, the Bitcoin course rose from $ 10,000 to $ 69,000 when global money prints (economic stimulus packages) stormed cryptocurrency. In October 2024, when M2 reached a new high of $ 89.7 trillion, the Bitcoin course also increased. Analysts say that this trend could continue and Bitcoin could reach new all -time highs in the coming months, possibly $ 95,000.
As mentioned in a recently published CNF report, the expansion of the money supply M2 has long correlated with the BTC course, so that the opportunities for further price increases are good. Analysts observe how central banks add liquidity and how Bitcoin reacts to this new capital.
Bitcoin has broken an important resistance and closed over the descending trend line, which has been in force since mid -January. The next day, BTC recovered by 2.22%, but was rejected at $ 85,000, the 200-dayema (exponential moving average) and a resistance brand. However, BTC kept above $ 84,500, so that there is still room for further price increases.
As CNF reported, Bitcoin retailers are waiting for a daily closing course over $ 85,000. If BTC closes above this level, it could increase up to $ 90,000. A breakthrough over this could lead to a test of the March high of $ 95,000. From a technical point of view, both the RSI and the MACD are zinspullic, which ensures further upward potential.
However, analysts warn that BTC could encounter resistance at $ 96,000. This is the Trader Realized Price, an on-chain metric for the market value. If BTC cannot maintain the upward trend, it could fall again at lower levels such as $ 78,258.
Dealers should be careful when Bitcoin approaches a liquidity zone. The data From Coinglass According to the liquidity of $ 85,800, which can lead to large price movements. This concentration of stop and limit orders can lead to more volatility, since the orders are carried out in a quick succession.
As we have emphasized in our previous article, liquidity zones such as this can serve as support and as a resistance, which can lead to great price fluctuations. If BTC breaks over this level, higher courses can occur. If the market cannot withstand the upward pressure, this liquidity zone can become resistance and mean a setback.
In view of the increasing M2 money volume and their historical correlation with the BTC Prize, the market for further volatility is equipped. Even if $ 95,000 are still within sight, retailers should be aware of the market conditions and carefully manage the risk, especially in key values such as $ 85,800.
In a recently published study, it was found that the global M2 money amount has already reached $ 108.4 trillion, which gives the BTC price tailwind. Since the central banks continue to print money, the BTC course could continue to increase.
Market analysts even expect a new wave of institutional investments. However, since the market is sensitive to macroeconomic events, its way to $ 95,000 will depend on a combination of technical and macroeconomic factors.
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