Long-Term Signals of Bitcoin Indicate Optimistic Sentiment

The positive trend in the M2 Money Supply suggests increased liquidity, which could propel Bitcoin. Despite this optimistic signal, other metrics indicate downward price pressure on cryptocurrencies.

Azcnews Long Term Signals Of Bitcoin Indicate Optimistic Sentiment

After significant adjustments, Bitcoin has finally witnessed some positive movements on the price chart, with BTC rising nearly 5% in just 24 hours. Currently, at the time of writing, BTC is trading at $62,850. This upward trend has seen the cryptocurrency’s price surge from $57,000 in just a few days, potentially signaling a more favorable direction for the cryptocurrency market.

This positive development coincides with revelations from the co-founder of Apollo Sats, who recently emphasized a significant change in the M2 Money Supply. According to the CEO, the M2 Money Supply has transitioned from negative to positive on an annual basis, starting from May 1st.

Image1

Source: X

This is a significant update, indicating an increase in money circulation, which typically serves as a precursor for increased investment in assets such as Bitcoin during periods of rising inflation. Trader and financial author Oliver L. Velez recently commented on this:

“The M2 Money Supply is about to skyrocket, like never before. You might say ‘Bŕrŕrrrr, what?’ All I can say is, ‘buckle up’ and buckle down. Any and all dips are buyable. Consider them gifts and ignore the doomsayers. We’re nowhere near the end of BTC’s price surge.”

The significance of the M2 Money Supply change for Bitcoin

The M2 Money Supply represents all cash and short-term bank deposits nationwide. Its positive territory shift is a classic economic indicator that often directs investors’ attention to assets with a history of performing well during periods of high inflation.

In the realm of cryptocurrencies, such changes have historically yielded superior results compared to traditional financial markets. The latest positive adjustment in the M2 supply has sparked speculation among cryptocurrency traders about the potential for a sustained Bitcoin price increase.

Image2

Source: Glassnode

However, despite the optimistic outlook associated with the positive shift in the M2 supply, it is essential to consider other market indicators that continue to point towards ongoing downward price pressure. For instance, an analysis by Glassnode revealed an increase in Bitcoin’s net outflow across all groups throughout April, indicating persistent selling pressure.

Related: Bitcoin Hits $63,000 Following First Influx of Capital into GBTC

Meanwhile, additional analysis of Bitcoin’s technical chart shows mixed signals. On the 4-hour chart, Bitcoin recently encountered a block of sell orders, hinting at a potential price reaction or reversal. This scenario is further supported by the formation of a bullish spinning top candlestick pattern, followed by a bullish engulfing candlestick. This often occurs prior to a market reversal from bearish to bullish conditions.

These chart formations indicate that while immediate bullish movements may occur, overall market sentiment remains cautiously optimistic.

In fact, cryptocurrency analyst Ali Martinez recently reinforced this sentiment by highlighting recent buy signals from Bitcoin’s Market Value to Realized Value (MVRV) ratio, providing another perspective on the current market momentum.

Love

0.0/5

Love

Latest

Nobitex Crypto Exchange Resumes Operations After $90 Million Hack

News | Editor Choice | Policy & Regulations

Nobitex Crypto Exchange Resumes Operations After $90 Million Hack

After a shocking $90 million hack, Iran’s crypto exchange Nobitex has begun restoring its services with strict security measures, allowing access only to verified users.

Game Designer Analyzes Xrp’s Path To A 913,000% Price Surge To $20,000

News | Altcoin | Editor Choice

Game Designer Analyzes XRP’s Path to a 913,000% Price Surge to $20,000

A bold theory is gaining attention within the XRP community: the idea that the token could reach $20,000 — a surge of over 900,000% — if adopted by global financial institutions as part of core financial infrastructure.

Metaplanet Acquires An Additional 1,005 Bitcoin, Ranks In Top 5

Bitcoin | Editor Choice

Metaplanet Acquires an Additional 1,005 Bitcoin, Ranks in Top 5

Metaplanet has purchased an additional 1,005 BTC, bringing its total reserves to 13,350 BTC and placing it among the top 5 companies with the most Bitcoin holdings.

Vitalik Buterin Issues Risk Warning About Worldcoin

Altcoin | Editor Choice

Vitalik Buterin Issues Risk Warning About Worldcoin

Vitalik Buterin has issued a warning about the risk of privacy breaches undermining the privacy rights that Worldcoin provides.

Binance Linked Group Joins Drafting Of Crypto Legislation In Kenya

News | Editor Choice | Policy & Regulations

Binance-Linked Group Joins Drafting of Crypto Legislation in Kenya

The inclusion of an organization allegedly closely tied to Binance in Kenya’s new crypto regulatory board has sparked concerns among local startups about potential policy manipulation and unfair competition.