Bitcoin price reclaims $107K as M2 supply hits new ATH. With a bull flag forming, BTC eyes a possible rally toward $119K.
As of July 2, Bitcoin (BTC) is up 2.37% in just one day, trading at $108,434 at the time of writing.
Bitcoin price is still 3.13% lower than its peak, which buyers have anticipated for weeks.
However, as the M2 money supply increases, traders feel more optimistic that it may hit this record high.
Global M2 Supply Reaches New High
For a few weeks, Bitcoin price has been moving slowly. T
he global money supply has increased, reaching a new high of almost $100 trillion.
Bitcoin price often rises when the supply increases.
As a result, traders may start gravitating toward Bitcoin due to concerns about rising inflation.
Furthermore, given the recent increase, traders may begin purchasing Bitcoin to reduce the risk of depreciation associated with keeping dollars or other currencies.
When the supply increase was compared to the price of Bitcoin, analyst Ash Crypto found that the cost of Bitcoin always performed similarly.
At the same time, Bitcoin followed the same pattern whether the supply increased or decreased.
Ash offers an optimistic prediction for Bitcoin price based on this chart, stating that it might reach $175,000, which would be a new all-time high.
The next Bitcoin target, according to MartyParty, is between $145,000 and $146,800.
He continues that two assets have been accumulated since February, suggesting that some traders may be buying in silence while they watch for the next move.
These analyst opinions also appear when demand for other assets is high and may shift to Bitcoin.
The S&P 500 index produced an ATH, which might spur advances for the king coin, according to a recent CoinGape study.
Bitcoin Price Forecast: Will $119,000 Be Next Goal?
With a bull flag formation emerging that suggests potential gains and supports the optimistic perspective on the supply vs. BTC chart, the growing money supply is driving gains for the price of Bitcoin.
The pattern’s peak indicates that the price of bitcoin might increase by 10% and reach an all-time high of $119,000 if bulls break through the channel’s resistance line.
Additionally, Bitcoin has already surpassed the 200-day SMA, which suggests that bulls may continue to hold sway for some time.
The price may continue to rise if it remains above the 50-day SMA, which is also a good support level.
The fact that the RSI indicator is increasing and has already crossed over 50 makes the $119,000 target mentioned above considerably more likely to be reached.
Bullish pressure will keep rising as long as this signal continues growing, and the price of Bitcoin may reach all-time highs.
In conclusion, the M2 supply is increasing, and if history indicates, the price of Bitcoin may likewise follow this trajectory.
Since the flag pattern already shows a bullish outlook, analysts expect a new all-time high, and a climb above $119,000 may be feasible.
