Well now, after a spell of uncertainty that could make a cat on a hot tin roof look calm, Bitcoin, that mischievous rascal, has decided to don its bullish hat. Just in the last 24 hours, it has leaped up by a sprightly 3.66%, reaching a dizzying high of $87,443.27. It seems our dear digital friend has also reclaimed the all-important 20-day EMA ($85,703) and is currently giving it a good ol’ test as support, according to the wise folks at CoinMarketCap.
Bitcoin at a Critical Juncture
Now, if we take a gander at the Fibonacci retracement levels, we find some key resistance areas. The 1.618 level at $85,939 is acting like a stubborn mule, refusing to budge. If BTC can manage to stay above this level, the next targets would be the 2.618 ($88,023), 3.618 ($90,107), and 4.236 ($91,395) extensions. It’s like a game of hopscotch, but with a lot more zeros involved!
Meanwhile, the MACD indicator is whispering sweet nothings about a potential slowdown in bullish momentum, as those histogram bars have started to shrink like a balloon losing air. If Bitcoin gets a cold shoulder at these resistance zones, we might see it pull back to the 0.618 ($83,858) or 0.786 ($84,205) Fibonacci levels before it decides to take another leap.
BTC to Continue Rising?
Now, the experts, bless their hearts, believe that one of the main reasons Bitcoin might keep climbing is its relationship with the M2 money supply. It’s like a dance, and Bitcoin is leading!
The empirical power law between M2 and Price is probably the best point of reference for confidence that Bitcoin will continue to rise. M2 needs to rise over time for several reasons and the incredibly high correlation and power law leverage, power of 9, means a small change in…
— Giovanni’s BTC_POWER_LAW (@Giovann35084111) March 20, 2025
The M2 money supplies the total amount of money in circulation, including cash, checking deposits, and easily accessible savings. Historically, Bitcoin’s price has shown a strong correlation with the expansion of M2. It’s like saying, “The more money there is, the more Bitcoin shines!”
Because of this correlation, even a modest 10% increase in M2 liquidity could potentially more than double Bitcoin’s price. It’s a phenomenon known as power-law leverage, which means Bitcoin’s price reacts like a catapult to changes in available liquidity.
On the other hand, BitMEX’s Arthur Hayes believes that Bitcoin’s recent drop to $77,000 may have marked a bottom. He’s got his eyes peeled for the next big move.
JAYPOW delivered, QT basically over Apr 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE. Was $BTC $77k the bottom, prob. But stonks prob have more pain left to fully convert Jay to team Trump so stay nimble and cashed up.
— Arthur Hayes (@CryptoHayes) March 20, 2025
He attributes the potential for renewed bullish momentum to the conclusion of quantitative tightening (QT) by April 1 and the possibility of renewed quantitative easing (QE) or exemptions to the Supplementary Leverage Ratio (SLR). It’s a wild ride, folks!
Meanwhile, Strategy’s Michael Saylor remains as bullish as a bull in a china shop, claiming that investors
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2025-03-20 12:29