On Thursday, the BTC/USD pair hit a new high, breaking through the $65,000 resistance level. So far on Friday, the daily chart shows that it has confirmed a breakout of resistance, which, if successful, will set the stage for the next leg up, breaking through the main resistance level of $70,000.
Greed is back
The bull market is back. The Fear & Greed Index shows that sentiment is moving towards greed. Just last month, the indicator was in fear with a score of 30. What a difference a few weeks makes.
U.S. spot Bitcoin ETFs are seeing buying again, with only one day of net outflows in the past ten days. Thursday’s net inflows of $365.7 million were the largest single-day net inflows since July, likely as institutional buyers piled in to bet on BTC prices before they rise again.
M2 money supply explodes
Looking further ahead, macro analyst Raoul Pal retweeted Julien Bittel’s post on X showing that the global M2 money supply has broken out. Both analysts believe that this indicator will drive crypto prices significantly higher. Bittel commented on his and Pal’s “Everything Code” opinion:
"If our assumption about 'everything is code' is correct, then the number is much higher..."
Short-term resistance now becomes support
In the short term, BTC is indeed moving higher. The resistance levels on Thursday were $63,600 and $65,000, while they became support levels on Friday.
The price could return to the top of the channel, which could theoretically be reached between $68,000 and $70,000. The next Fibonacci level for this move would be 1.618, which is $72,750.
Fibonacci levels suggest $102,000, then $155,000
BTC’s weekly chart offers a clearer macro picture for the king of cryptocurrencies. Currently, the price has surpassed the candlestick top of the last bull cycle in 2021, and the top of the bull flag is now very close.
It can be seen how accurate the Fibonacci levels have been throughout the Bitcoin bull cycle. The 0.786 Fibonacci is now acting as support, with the next major level (1.618) being well above at $102,000. Furthermore, if the bull flag is measured, the target price would be just above $100,000.
Whichever way you look at it, the future looks very bright for Bitcoin. Fibonacci levels have predicted major moves in Bitcoin in previous bull cycles, so it can be expected that this will continue. If $100,000 is reached, the next big Fibonacci level (2.618) will be at $155,000.
