CandleFocus

Bitcoin growth lags behind the latest money supply inflows

Bitcoin (BTC) broke above $66,000, but its growth is still lagging from predictions. The M2 money supply has been expanding, which suggests a move to easier liquidity that may benefit BTC. However, BTC may lag behind the trend by weeks or months. Despite breaking the 200-day moving average, BTC's short-term prospects for a rally remain uncertain. There are cautious traders who see the recent price moves as a bull trap. BTC is still in the period where the biggest and fastest gains can happen, but it may make shallow retests of lower levels before potentially breaking above $70,000. The run-up to the US Presidential Elections is also expected to impact BTC's price. The Rainbow Chart indicates that BTC is still in the Buy/Accumulate zone. The halving narrative is being revisited as a source of expectation for extending the bull market into 2025.

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