- Bitcoin’s price recovery since Feb 26 shows strengthening demand as net taker volume shifts from negative to neutral.
- Bitcoin made higher lows in spite of sell-offs, suggesting that it is resilient and may continue its upward trend.
- Bitcoin’s growth aligns with global M2 expansion, though recent gains suggest resilience even with slower monetary expansion.
Bitcoin’s market has shown a shift in trader sentiment, indicating a decline in bearish orders since February 26. The net taker volume has gradually transitioned from negative to neutral, impacting price movements. This change suggests a strengthening demand, with Bitcoin attempting to stabilize around key price levels.
Bearish Volume Declines as Bitcoin Recovers
Between February 16 and February 24, Bitcoin’s price hovered near $90K with minimal net taker volume fluctuations. However, on February 25, an increase in negative net taker volume exceeded -$1B. This caused Bitcoin’s price to drop below $78K.
From February 26 to March 2, net taker volume remained negative, yet Bitcoin’s price attempted a recovery. By early March, green bars appeared, indicating buyer dominance. A significant drop occurred on March 4, coinciding with increased bearish volume. Nonetheless, lower lows formed, showing a progressive price recovery.
Between March 7 and March 10, Bitcoin’s net taker volume turned positive, pushing the price toward $90K. However, another wave of selling pressure emerged, leading to a price decline. By March 16, Bitcoin’s price fluctuated between $78K and $84K as net taker volume approached neutral. A red-dotted trendline highlights a gradual recovery, suggesting growing market demand.
Bitcoin’s Price Trends Align with Global M2 Expansion
Poloniex data show Bitcoin price alongside global M2 money supply expansion. Between 2015 and 2018, Bitcoin increased from under $500 to nearly $20,000. During these three years, global M2 expanded by 19.3%, fueling Bitcoin’s ascent.
Between 2018 and 2021, Bitcoin rose from below $4,000 to over $60,000 with a 33% global M2 rise. Despite volatility, Bitcoin was registering higher lows. Between 2022 and 2024, Bitcoin’s price almost touched $100,000 while global M2 rose only 6.8%. This shows Bitcoin’s uptrend could continue despite limited monetary expansion.
