Bitcoin Price Prediction if BTC Catches Up with M2 Supply Again

Bitcoin (BTC) is gaining today, July 2, as it trades at $108,434 at press time, with a 2.37% increase within 24 hours. Bitcoin price remains 3.13% below the all-time high price, which buyers have been expecting it to reach for several weeks now. However, there is a renewed optimism among traders that it might reach this record high after the M2 money supply rose.

Global M2 Supply Hits a Fresh Record High

BTC price has been trading without strong momentum for several weeks. During the same period, the global money supply has risen, and it has recorded a fresh high above $100 trillion.

When this supply rises, it usually drives gains for the Bitcoin price. Therefore, traders may begin to turn towards BTC because of the fear that inflation will rise. Moreover, the recent rise might see traders begin to buy Bitcoin as they seek to avoid holding dollars or other currencies because of the risk of devaluation.

Analyst Ash Crypto has compared the price of Bitcoin to the supply growth, noting that each time it flattened, Bitcoin price performed the same way. At the same time, when the supply rose or fell, BTC also moved in the same pattern.

Based on this chart, Ash shares a bullish Bitcoin price forecast, noting that it may rise to $175,000, marking a new all-time high.

Meanwhile, MartyParty says that the next Bitcoin target is at $145,000 to $146,800. He adds that two assets have been in accumulation since February, meaning that some traders could be silently buying as they wait for the next move.

These analyst sentiments also come when other assets are attracting much demand that could move to Bitcoin. A recent CoinGape report noted that the S&P 500 index created an ATH that may soon drive gains for the king coin.

Bitcoin Price Prediction – Is $119,000 the Next Target?

The rising money supply is fuelling gains for the Bitcoin price, with a bull flag pattern appearing, suggesting possible gains, while supporting the bullish outlook on the supply vs. BTC chart.

The height of this pattern shows that if bulls can manage to overcome the resistance line in the channel, Bitcoin price could rise by 10%, and create an all-time high at $119,000.

Moreover, BTC has already moved above the 200-day SMA, indicating that bulls might remain in control for a while. The 50-day SMA is also a strong support level, and as long as the price is trading above it, the gains may continue.

The $119,000 target seen above becomes even more likely to be achieved, considering that the RSI indicator is rising and it has already gone above 50. As long as this indicator is rising, bullish pressure will continue to grow, and the price of Bitcoin could be headed for new highs.

In conclusion, the M2 supply is rising, and if history repeats itself, this is also the same path that the Bitcoin price could follow. Analysts are anticipating a new all-time high, and with the flag pattern already showing that the outlook is bullish, a move to $119,000 might be possible.