- Bitcoin’s reaction to M2 expansion may take months, with price movement influenced by market positioning and macroeconomic trends.
- The technical analysis highlights 70k-74k as a critical accumulation zone, with a potential long-term upside toward 120k-140k.
- Market conditions suggest short-term volatility, but analysts anticipate a bullish trend resumption by mid-2025 if key support holds.
The crypto market report examines liquidity, M2 money supply, and key technical levels amid shifting sentiment. The report questions whether Bitcoin is entering a bear phase or remains on a bullish trajectory, based on recent market data and technical analysis.
Liquidity and M2 Money Supply Analysis
An influential crypto analyst Dr profit highlighted that M2 money supply shows a strong historical correlation with Bitcoin. The report explains that liquidity plays a crucial role in market behavior and price movements. Market participants must understand that increased M2 does not trigger immediate market gains. Official data on inflation and broader economic trends are essential for proper analysis.
The analyst noted that stock markets react to M2 expansion over six months, while Bitcoin responds sooner. Despite resumed money printing, market gains are not instantaneous. Timing and macroeconomic context remain critical when evaluating liquidity. Historical trends suggest that M2 expansion can precede market rallies if priced in by major players.
The report stresses that many market observers misinterpret M2 expansion effects. When money printing resumes, some assume markets will immediately rally, which is a common misconception. In reality, the effect depends on how long the M2 expansion has been in play. The analysis shows that traders who anticipated these trends positioned themselves advantageously.
Market Strategy and Technical Levels
The report outlines a detailed market strategy based on technical indicators and price action. The expert discussed a key weekly EMA50, known as the Golden Line, which has served as a critical support level. This technical indicator has guided several successful trades recently. Price action around the 87-88k region has generated profitable short setups for early followers.
According to the report, the Golden Line played a pivotal role when the price bounced near 76k. This support has allowed traders to set short positions, targeting an exit zone between 70k and 74k. The analysis explains that a close above this support zone could force traders to adjust positions. Active short orders remain in the yellow-marked area on technical charts. The report provides detailed entry and exit targets to manage positions effectively.
Short setups have yielded solid gains, and the report outlines a strategy for profit-taking. Traders who followed the setup witnessed favorable returns near the 87.4k region. A structured approach remains essential as market behavior continues to evolve. The report underlines that clear technical levels help in making strategic adjustments.
Outlook and Bearish Scenarios
The report offers a long-term outlook that foresees a bull trend resuming in May or June, with targets between 120k and 140k. It explains that market reactions to the M2 expansion are unfolding gradually. The analysis anticipates sideways movement and short-term bearish pressure until a clear trend reversal emerges. The expert expects that the market will eventually align with a rising M2 trend.
Two bearish scenarios are presented in the report. One scenario targets a price range of 70k to 74k, serving as an accumulation zone. The other scenario considers a more severe drop towards the 50k region. These scenarios depend on price behavior relative to the Golden Line and the daily close. The report specifies that a full daily close below critical support may trigger deeper market moves.
Market participants are advised to monitor technical levels closely and adjust strategies accordingly. The report outlines a plan where profit taking and entry adjustments are based on price action near the support zone. Traders are urged to review market updates as conditions change. The detailed analysis provides a clear framework for navigating the current market environment while remaining adaptable to evolving conditions.
