Bitcoin Breaks Out Against M1 Money Supply for the First Time Since 2017, Analysts Predict Major Rally

  • Bitcoin’s price has recently exhibited a significant breakout against the M1 money supply after an extensive period of consolidation spanning eight years.
  • This breakout is drawing parallels to historical market movements, suggesting potential implications for the future of Bitcoin.
  • Trader Peter Brandt has shared observations that could signal an imminent major rally for Bitcoin, referencing historical chart patterns.

Discover the implications of Bitcoin’s recent breakout against the M1 money supply and what it could mean for future price movements.

Historic Bitcoin Breakout Against M1 Money Supply

Veteran trader Peter Brandt recently shared a Bitcoin price chart highlighting a notable breakout against the M1 money supply. This is the first such breakout since 2017, leading many to speculate whether Bitcoin is poised for a significant rally, potentially reaching new all-time highs. The historical context provided by Brandt suggests that this breakout might precede a parabolic rise in Bitcoin’s value.

Resonance with Past Market Trends

Brandt noted the similarities between the current Bitcoin chart structure and that of the Dow Jones Industrial Average during the Great Stagflation of the 1970s. This period saw a continuation inverted head and shoulders (H&S) pattern, indicative of potential upward momentum. The argument extends to the eventual degradation of fiat currencies like the US dollar, suggesting Bitcoin as a potential hedge.

Analysts Predict Meteoric Surge

Analysts supporting Brandt’s view have emphasized the unprecedented nature of this breakout. They argue that the compression observed in Bitcoin’s 5D bullish pattern, which has reached levels not seen in eight years, signifies robust upward momentum. This conjecture is further bolstered by historical patterns where similar breakouts have led to substantial price rallies.

BTC Price Set for an Imminent Rally

According to CoinOtag, early formation of a cup-and-handle pattern in Bitcoin’s price further supports the bullish narrative. The cup part has fully formed, while the handle indicates potential confirmation of a breakout. Currently, Bitcoin prices hover around $67,700, with fluctuating trading volumes suggesting a brewing sentiment among traders.

Impact of External Factors on Bitcoin Price

Despite concerns about the impact of the Mt. Gox Bitcoin distribution, experts have downplayed any significant adverse effects on Bitcoin’s price. Creditors intend to hold rather than sell during the anticipated bull market, with plans to gradually liquidate to maximize returns.

Conclusion

In essence, Bitcoin’s breakout against the M1 money supply marks a potentially pivotal moment, drawing historical parallels that suggest a significant rally could be on the horizon. Traders and analysts are closely monitoring these developments, as they might herald new price peaks and reaffirm Bitcoin’s standing as a hedge against traditional fiat currencies.

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