Bitcoin: A Rally or a Larry?

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So, Bitcoin (BTC) is still hovering around the low $80,000 range, and I’m thinking, “Is this thing ever going to take off?” But guess what? There’s a macroeconomic signal that might just be the push BTC needs. If history is any guide, we might be on the brink of a massive price rally. 🚀

Rise In M2 Money Supply To Benefit Bitcoin? 🤔

According to a post by crypto analyst Master of Crypto, a rebound in global M2 money supply could be the catalyst for BTC’s next big move. Master of Crypto explained that M2, a leading indicator, often predicts significant shifts in Bitcoin’s price. But let’s be real, who really understands M2? It’s like trying to figure out why my neighbor’s lawn is always greener. 🌱

For those who don’t know, M2 money supply is a measure of the total money circulating in an economy, including cash, checking deposits, savings accounts, and other liquid assets. It’s a key indicator of liquidity, influencing inflation, economic growth, and financial markets, including Bitcoin. It’s like the weather forecast for the economy. 🌦️

Master of Crypto noted that historically, M2 movements tend to predict BTC’s price momentum with a 70-day lag. The analyst added:

Recently, as M2 began to rebound before BTC, it’s now fully recovered and poised to hit new peaks suggesting BTC might do the same. Analysts have insights on why this upcoming BTC rally could surpass all previous ones.

Fellow analyst James echoed these views, highlighting that BTC may experience another price rally after a brief period of dip and consolidation. But let’s not get too excited yet. It’s like waiting for a bus that’s always late. 🚍

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Technicals Point Toward BTC Take-Off 🚀

Crypto trader Merlijn The Trader identified a possible breakout from a falling wedge pattern – a historically bullish formation for Bitcoin. On average, BTC has delivered 66% returns following a breakout from this pattern on the three-day chart. A similar move now could propel BTC to new all-time highs (ATH). But let’s not get ahead of ourselves. It’s like predicting the weather in Los Angeles – sunny with a chance of palm trees. 🌞🌴

Moreover, Merlijn noted that BTC is also tracking a megaphone pattern. However, he cautioned that Bitcoin must hold above $72,000 for this bullish structure to remain intact. It’s like a tightrope walk over a pool of sharks. 🦈

Crypto expert Burak Kesmeci pointed out that a recovery in the U.S. stock market may be crucial for Bitcoin’s next surge. He emphasized the strong correlation between cryptocurrencies and traditional equities, suggesting BTC could struggle if stocks remain weak. It’s like a dance where both partners need to be in sync. 💃🕺

Meanwhile, well-known American gold advocate Peter Schiff issued a bearish warning. He argued that BTC isn’t out of the woods yet – predicting a potential “catastrophic drop” if the NASDAQ enters a bear market. At press time, BTC trades at $83,826, down 1.7% in the past 24 hours. But hey, who knows? Maybe it’s just taking a nap. 😴

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2025-03-22 15:46