- Bitcoin’s price action is currently undergoing a major corrective phase, but analysts predict a strong upward movement soon.
- Based on past price action, some experts believe Bitcoin could surge above $73,800 and even reach new all-time highs of $100,000.
- Key factors such as inflation and the M2 money supply in the United States could also impact Bitcoin’s price.
Despite a corrective phase, Bitcoin’s price action could see a significant surge, potentially reaching new all-time highs. This article explores the factors that could drive this upward trend.
Historical Price Action Places BTC Above $90,000 In Coming Months
One analyst recently offered a bold prediction based on Bitcoin’s price action from late 2022. During that period, Bitcoin experienced a significant drop to as low as $15,500 before rebounding sharply throughout 2023 and Q1 2024. If Bitcoin follows this pattern, the analyst predicts that the coin could soar to $90,000 and potentially even reach $100,000. The exact timeframe for this surge remains unclear, but another analyst suggests that Bitcoin must trade above $60,000 to maintain its upward momentum. This could potentially see Bitcoin reach as high as $95,000 by August 2024.
Bitcoin’s Price Trends and Key Support Trend Line
Further supporting this bullish outlook, another analyst noted that after Bitcoin’s price dropped to as low as $56,500 this week, it retested a key support trend line. As long as this trend line holds, it’s only a matter of time before prices shoot higher. However, prices will only flip green if there is a close above the current all-time high of $73,800.
Inflation Remains High And M2 Supply In The United States Growing
With the approval of spot Bitcoin exchange-traded funds (ETFs), Bitcoin is now closely tied to global markets. As such, key events in traditional finance, such as inflation, are likely to impact crypto prices and sentiment. Inflation has been higher than the benchmark 2% in the United States, preventing the Federal Reserve from further reducing rates. However, even as inflation drops, the M2 money supply has been rising, according to FRED Economic data. The last time it grew, it triggered a bull run that pushed Bitcoin to fresh all-time highs of around $70,000.
Conclusion
Despite current corrective phases, Bitcoin’s price action could see a significant surge in the coming months. Historical price action, key support trend lines, and factors such as inflation and the M2 money supply in the United States could all contribute to this upward trend. However, as always in the crypto market, these predictions are not set in stone and investors should proceed with caution.
