Markets
Bitcoin Flashing Signal That Preceded Nine-Month Parabolic Rally, Crypto Strategist Says
Closely Followed Crypto Strategist Says Bitcoin (BTC) just launched a signal last seen before the spectacular rebounds of the 2017 bull cycle.
Pseudonymous analyst TechDev told his 452,600 followers on social media platform
According to TechDev, the same thing happened in the early months of 2017, before Bitcoin posted gains of over 2,600% in less than a year.
“You are seeing the first breakout of Bitcoin relative to the M1 money supply since March 2017, when it went historically parabolic for nine months.”
Source: TechDev/X
The M1 money supply tracks the amount of cash circulating in the U.S. financial system by summarizing all physical money, including coins and foreign exchange, demand deposits, traveler’s checks, and other verifiable deposits.
According to TechDev, the signal suggests that traders and investors underestimate the upside potential of Bitcoin in this market cycle.
“Trend comparisons and projections involving 2021 could end up significantly underestimating things…
An interpretation :
In 2021, BTC reached new highs in USD thanks to the increase in money supply.
In 2024, he arrived there at his own request (and thus broke out against M1).
Add in this time the expected growth of M1 and we will likely see BTC exceed expectations based in part on 2021.”
TechDev claims that BTC could reach over $400,000 in less than a year if it follows in the footsteps of the 2017 bull market.
“I know it’s ridiculous. It’s not my call. $70,000 > $420,000 in one year seems crazy, as does $1,000 > $20,000. I wouldn’t have called that either.
Source: TechDev/X
At the time of writing, Bitcoin is trading at $67,844.
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