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.

0.0/5

Love

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

What Is A Cold Wallet Azc

Research | Editor Choice | research

What is a Cold Wallet? Top 3 Best Cold Wallets in the Crypto Market

Is a cold wallet an effective tool for storing cryptocurrencies? So, what is a cold wallet? What are some recommended types of hardware wallets to use? Let's find out together!

Azcnews Ctk Soars 100% In One Hour Ahead Of Major Update

News | Altcoin | Editor Choice

CTK Soars 100% in One Hour Ahead of Major Update

The price of the CTK token doubled within an hour ahead of the upcoming Shentu v2.10.0 update.

Azcnews A Major Uk Bank Officially Bans Cryptocurrency Transactions

News | Editor Choice | Policy & Regulations

A Major UK Bank Officially Bans Cryptocurrency Transactions

Starting May 30, the UK digital bank Kroo will prohibit its customers from conducting cryptocurrency transactions.

An Investor Becomes A Millionaire Thanks To Memecoin Shiba Inu

Altcoin | Editor Choice

An Investor Becomes a Millionaire Thanks to Memecoin Shiba Inu

An investor became a millionaire by holding Shiba Inu for 3 years, turning $2,700 into $1.2 million.

Azcnews Ethereum Approaches Ath As Fund Market Premium Peaks

News | Altcoin | Editor Choice

Ethereum Approaches ATH as Fund Market Premium Peaks

As Ethereum edges closer to its all-time high, the Fund Market Premium of ETH has reached its highest level since November 2021.