- Bitcoin broke above $106K after months of consolidation as global M2 hit $55.48T and the U.S. dollar showed major weakness.
- A bullish breakout above $105K confirms Bitcoin’s trend shift, supported by volume and a strong ascending triangle pattern.
- Global M2 and Bitcoin now move in sync, but the recent price divergence suggests Bitcoin is entering a new bullish phase.
Due to favorable macroeconomic developments, Bitcoin is rapidly gaining traction. The price of the cryptocurrency rose 1.22% per day to $106,972.16. The global M2 money supply reached a record $55.48 trillion at the same time as this increase. In addition, the U.S. dollar recently had its lowest half-year earnings since 1973. A favorable outlook for Bitcoin in the second half of 2025 is presented by these variables.
Recently, Bitcoin has been on quite a ride after spending months stuck in a narrow range between $100,000 and $105,000. For most of 2024, the price was stable, with only moderate trading volume. But then, in mid-2024, everything changed when Bitcoin broke through that $105,000 resistance level, and it did so with some trading volume backing it up.
Technical Structure Supports Further Upside
Bitcoin formed an ascending triangle throughout its consolidation period. The pattern showed higher lows converging with a flat resistance. This bullish setup often leads to upward breakouts. Bitcoin confirmed this theory when it surged past resistance with growing volume.
Source: X
Besides, volume patterns validated the breakout. Buying interest appeared genuine, not just short-lived spikes. Bitcoin now trades confidently above the $106,000 level. It also respects the higher support range established after the breakout.
The technical outlook remains strong. No reversal signals are visible in current price action. Bitcoin now trends upward instead of ranging, indicating bullish sentiment.
Global M2 Correlation Signals Bullish Macro Backdrop
The Global M2 money supply correlates closely with Bitcoin’s long-term price action. Both metrics now show synchronized upward movement. During the recent surge, Bitcoin diverged from the M2 curve, creating a visible gap. This divergence suggests a unique phase of strength for Bitcoin.
Consequently, the current macro and technical environment support continued upside. The M2 record and dollar weakness reinforce Bitcoin’s role as a hedge. Analysts at Cointelegraph and TradingView point to the possibility of Bitcoin reaching $170,000.
