- Bitcoin rallies above $104K as global M2 growth accelerates, confirming strong correlation between liquidity and crypto performance.
- BTC reclaims 50-day moving average with solid momentum, mirroring previous breakout patterns that led to major price surges.
- Central bank liquidity support and strong technicals position Bitcoin for further gains as bulls dominate heading into late 2025.
Global liquidity expansion and technical strength are fueling Bitcoin’s latest rally. Merlijn The Trader, a prominent crypto analyst, highlights that M2 money supply is accelerating. Historically, such liquidity growth leads to strong crypto performance. Bitcoin, now trading at $104,931.75, shows firm upward momentum. The asset has rebounded sharply from a March low of $74,700. Moreover, it’s respecting the 50-day moving average, signaling continued bullish strength.
Source: Merlijn The Trader
The recent breakout began in April. Bitcoin reclaimed the 50-day MA, shown as a white line. This level had acted as resistance during the February-March decline. However, once price reclaimed this dynamic support, momentum quickly shifted. Buyers re-entered aggressively, pushing BTC above $110,000 by mid-May. Consequently, bullish sentiment has returned as investors eye new all-time highs.
Liquidity Fuels Bullish Price Action
Besides technicals, macro liquidity remains a key driver. M2 growth is back in positive territory after severe contraction in late 2022. During that period, Bitcoin had dropped near $15,000. However, since early 2023, both M2 and BTC have trended higher. This correlation is consistent. Bitcoin thrives when global monetary supply expands.
Additionally, central banks including the Fed, ECB, and PBOC are contributing to broader monetary easing. The chart shows Bitcoin rising during green-shaded M2 expansion phases. These align with the asset’s surges above $60,000 in early 2024 and again in late 2024. Currently, M2 metrics and Bitcoin both trend upward. This backdrop strengthens the bullish case for crypto markets heading into the second half of 2025.
Technical Structure Remains Strong
The 50-day moving average has proven reliable support. BTC has bounced cleanly from this level without hesitation. According to Merlijn, similar behavior previously led to a 78% rally. Daily candlestick structure also shows increased volume during breakout phases. This confirms broad market participation during the rally.
Source: Merlijn The Trader
Furthermore, BTC now trades well above key psychological levels. The range between $100,000 and $113,000 marks both support and resistance. If current momentum holds, Bitcoin may soon challenge its previous highs. With liquidity rising and technicals firming, bulls appear back in control. All indicators point to a strong continuation pattern for Bitcoin through 2025.
