Bitcoin Price Retraces to $107,500 After Hitting $111,900 ATH
Bitcoin has experienced a pullback, dropping below $110,000 after reaching an all-time high of $111,900. The price fell to $107,500 before rebounding slightly, raising concerns about the sustainability of the recent rally.
Global M2 Money Supply Indicates Continued Strength
- Analyst Colin suggests Bitcoin's price closely tracks the Global M2 money supply with an 82-day lag.
- The global M2 aggregate hit a new all-time high, indicating potential for further Bitcoin price increases.
- Correlation between the Global M2 supply and Bitcoin is significant, peaking at 93% over 1½ years.
- Current pullback seen as a healthy retracement within a broader upward trend.
- Bitcoin remains above previous consolidation levels between $102,000 and $104,000.
Market Sentiment and Future Projections
- Despite recent highs, social sentiment remains skeptical about the breakout's sustainability.
- Colin notes the Crypto Bull Run Index (CBBI) sits at 79, indicating room for growth without nearing euphoric peaks.
- Projections suggest Bitcoin could rise towards $130,000 if current trends persist.
- Previous analysis by Colin accurately predicted Bitcoin’s breakout in May following a drop to $74,000 in April.
As of now, Bitcoin trades at $109,670, reflecting a 2% increase in the past 24 hours.
