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Bitcoin (BTC)’s top chart has hit an all-time high – here’s what it means
Arman Shirinyan
Global liquidity is changing the landscape of the cryptocurrency market
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A major turning point was recently reached for the cryptocurrency market Bitcoin, which reached an all-time high in one of its most important charts. In order to highlight the macroeconomic factors driving Bitcoin’s current bull run, the chart in question shows the relationship between global liquidity (M2) and the price of cryptocurrency.
At the moment, Bitcoin is trading at around $70,868, clearly rising. A strong bullish trend is evident in the chart, which shows a sequence of rising highs and lows. Moving averages are among the key technical indicators signaling further upward pressure.
Bitcon/USDT chart by TradingView
Breaking through key resistance levels, the price consolidated its position above $70,000. Increasing trading volumes, indicating strong buying interest, are supporting this breakout. A more complete view is offered by the second graph, which shows the price of Bitcoin in relation to global liquidity (M2).
With a staggering $94 trillion in global liquidity, the price of Bitcoin follows closely behind. In the past, rising Bitcoin prices have often coincided with increases in global liquidity. This report highlights Bitcoin as a store of value and hedge against inflation in a time of loose monetary policy. Aggressive monetary policies by central banks in response to economic difficulties are primarily responsible for the surge in global liquidity.
Investors are trying to do this Bitcoin as a hedge against the possible devaluation of fiat currencies as a result of the unprecedented amounts of money pumped into the global economy. The market’s increased confidence in Bitcoin’s long-term value proposition is reflected in the cryptocurrency’s price, which has hit local highs following this influx of liquidity. Technical analysis indicates that there are multiple bullish indicators on the Bitcoin price chart.
The newspaper graphs the moving averages further confirm the bullish trend, with the 50-day moving average moving above the 200-day moving average. Additionally, with higher volumes on up days compared to down days, volume trends support price action.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.