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Bitcoin is showing strong bullish momentum as it targets a significant breakout to $168K, driven by a classic cup-and-handle pattern and rising global M2 money supply.
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Despite geopolitical tensions and market volatility, institutional inflows into Bitcoin remain robust, signaling sustained investor confidence.
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According to COINOTAG, “The convergence of technical patterns and macroeconomic indicators positions Bitcoin for a potential new all-time high in the near term.”
Bitcoin eyes $168K breakout amid cup-and-handle pattern and rising global M2 money supply, supported by strong institutional inflows and resilient market sentiment.
Bitcoin’s Cup-and-Handle Pattern Signals Potential Surge to $168K
The Bitcoin price chart has recently formed a cup-and-handle pattern on the daily timeframe, a bullish technical formation that often precedes significant upward price movements. This pattern, characterized by a rounded bottom (the cup) followed by a consolidation phase (the handle), suggests that Bitcoin is preparing for a breakout above its previous highs. If the breakout materializes, technical analysis estimates a price target near $168,000, reflecting a 50% gain based on the cup’s depth. This projection aligns with historical precedents where similar patterns have led to substantial rallies in Bitcoin’s price.
Global M2 Money Supply Growth Underpins Bitcoin’s Rally
Macro factors are playing a crucial role in Bitcoin’s bullish outlook. The global M2 money supply, which encompasses cash, checking deposits, savings accounts, and other liquid assets, has been steadily increasing. Historically, Bitcoin’s price tends to follow trends in M2 money supply with a lag of approximately 12 weeks, as rising liquidity often drives demand for alternative assets like cryptocurrencies. This correlation reinforces the technical signals, suggesting that Bitcoin’s price appreciation is supported by fundamental monetary trends rather than speculative hype.
Institutional Inflows Remain Strong Despite Geopolitical Risks
Investor sentiment remains resilient even amid ongoing geopolitical tensions, such as the Israel-Iran conflict, and concerns over US tariffs. Data from spot Bitcoin ETFs reveal consistent inflows, indicating that institutional investors continue to view Bitcoin as a strategic asset. This sustained demand from institutional players adds depth to the market and reduces volatility, further supporting the bullish case. The recent recovery from a sharp liquidation event, which saw over $1.2 billion in crypto liquidations, underscores the market’s capacity to absorb shocks and maintain upward momentum.
Technical Indicators Support Continued Uptrend
Key technical indicators bolster the optimistic outlook. Bitcoin’s price successfully rebounded from the 50-day Simple Moving Average (SMA), a critical support level that traders monitor closely. Additionally, the Relative Strength Index (RSI) currently sits at 53 and is trending upward, indicating that there is ample room before the asset reaches overbought conditions. These factors suggest that the current rally has strong technical backing and could sustain further gains if Bitcoin holds above crucial resistance levels near $107,200 and the psychological $110,000 mark.
Conclusion
Bitcoin’s convergence of a bullish cup-and-handle pattern, rising global M2 money supply, and robust institutional inflows sets the stage for a potential breakout to $168,000. While geopolitical and macroeconomic uncertainties persist, the technical and fundamental indicators collectively point towards sustained upward momentum. Investors should monitor key resistance levels closely, as maintaining these will be critical for Bitcoin to realize its projected price targets. Staying informed through reliable sources like COINOTAG and The Crypto Times will be essential for navigating this dynamic market environment.
