Market analysts and historical chart patterns suggest that the growing money supply in the United States could be the catalyst for Bitcoin’s upward momentum. The M2 money supply, which includes cash and short-term bank deposits, has historically been correlated with previous Bitcoin bull runs. Jamie Coutts, the chief crypto analyst at Realvision, believes that the changes in the money supply are more important for Bitcoin’s price than its nominal value. In May, the M2 money supply turned positive year-over-year for the first time since November 2023, indicating that investors may seek hedges against inflation like Bitcoin. Additionally, the price action of the U.S. dollar breaking below the 101 mark could also impact Bitcoin’s price. On May 16, Bitcoin broke its month-long daily downtrend, and on the four-hour chart, it saw an upside breakout after a nearly five-week downtrend. However, Bitcoin’s relative strength index (RSI) suggests that it may need to fall further before seeing more upside momentum. Bitcoin also faces significant resistance around the $66,500 mark, and a move above it could liquidate over $111 million worth of leveraged short positions across exchanges. It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
Market analyst believes that Bitcoin's next move depends on the M2 money supply.