‍#Crypto Market Rebound  3

Reasons Why Bitcoin Could Hit a New All-Time High

Bitcoin BTCUSD is off to a rocky start to
July, weighed down by broader macroeconomic pressures. However, the largest
cryptocurrency is showing exceptional resilience. Many market observers remain
positive, with some suggesting that Bitcoin could soon reach a new all-time
high.

Analysts say there are several key factors
fueling this optimism: increased market liquidity, a weakening dollar,
historical trends, and positive technical indicators.

These Key Factors Point to a Possible Bitcoin
Price Increase

The renewed feud between Donald Trump and
billionaire Elon Musk has put downward pressure on the broader market. As such,
Bitcoin has also been affected.

With BTC just 3.8% off its all-time high,
analysts are increasingly hopeful that the gap will close soon. There are three
main factors supporting this view.

First, M2 money supply. According to the latest
data, the US M2 money supply has reached a record high of $21.94 trillion.

Historically, Bitcoin has shown a strong
correlation with M2. If this pattern continues, BTC could follow a similar
path. Furthermore, increasing M2 suggests that the amount of money in
circulation is increasing, which could lead to inflationary pressures and a
weakening dollar.

The US Dollar Index has fallen to levels not
seen since February 2022.

‘The US Dollar Index DXY has fallen to 96.37,
its lowest level since February 2022,’

Once again, Bitcoin has shown an inverse
relationship with the DXY. Investors are turning to Bitcoin as a hedge against
inflation as the dollar weakens. This trend could push prices higher.

Finally, in addition to M2 money supply, several
major indexes, including NVIDIA, the S&P 500, and the US100, have reached
new all-time highs (ATH). So how is Bitcoin benefiting from this?

Over the past five years, Bitcoin and the
S&P 500 have shown a strong correlation. Therefore, Bitcoin could also
experience positive momentum.

‘Bitcoin is expected to reach a new all-time
high in July, as history shows strong returns for risk assets this month. BTC
has never fallen more than 10% in July, and the S&P 500 has gained for 10
years in a row,’ one analyst noted.

Finally, a significant drop in Bitcoin’s supply
on cryptocurrency exchanges has emerged as a bullish indicator. According to
the data, Bitcoin’s percentage of supply on cryptocurrency exchanges has fallen
to 14.5%, the lowest level since August 2018.

This decline suggests that selling pressure is
easing as investors move their assets into long-term storage, a classic
precursor to price increases.

Anlist highlighted a bull flag pattern on the
BTC price chart. A bull flag is a chart pattern that indicates the continuation
of an uptrend, so Bitcoin could continue its upward movement.

‘This bull flag will take Bitcoin to $120,000!’

BTC Market Structure Supports Uptrend But
Challenges Remain

‘BTC price action has been stuck between
$106,000 and $108,700 for 7 consecutive days due to stalled market momentum and
no clear breakout. BTC has repeatedly failed to break and hold above $108,500
despite resilient institutional appetite’.

He acknowledged that macroeconomic conditions
such as the performance of traditional stocks and the falling dollar support a
positive outlook.

But he believes Bitcoin still needs a clear
macro catalyst. Without that, the market appears cautious and reluctant to push
higher.

‘A clean break above $108,800 could open the
door to retesting the previous all-time high range at $111,980, potentially
$130,000 by the end of Q3 and $150,000 by the end of the year, provided
institutional demand remains resilient and macro conditions provide a favorable
backdrop.

Sellers are actively defending the $108,500 resistance zone, but the
market structure supports a continuation to the upside if the bulls can regain
control with volume.’

He emphasized that if the price fails to stay
above $107,000, the short-term outlook could change, with potential targets at
$105,000 or even $102,000.