Buckle up, Bitcoin enthusiasts! A prominent crypto analyst, James Coutts, predicts a potential bullish turn for Bitcoin, with a price target as high as $150,000 in this cycle.
The M2 Money Supply: A Catalyst for Change
Coutts, Chief Crypto Analyst at Realvision, identifies the Global Money Supply (M2) as a critical factor influencing Bitcoin's price movements.
This metric, encompassing cash, checking deposits, and near money, reflects global liquidity levels.
While the M2 is currently neutral, Coutts anticipates a shift towards expansion, potentially fueling a Bitcoin rally.
Beyond Nominal Value: The Importance of Momentum
Coutts emphasizes that the rate of change in M2 (M2 momentum) is even more crucial than its absolute value.
A rise in M2 momentum, potentially driven by factors like dollar depreciation and increased government spending, could trigger a bullish signal.
Credit Conditions and the Chameleon Trend Indicator
Corporate bond spreads compared to US Treasury yields offer valuable insights. Narrowing spreads suggest corporations can manage debt issuance despite high interest rates.
Coutts recommends using the chameleon trend indicator on the corporate spread index to identify potential Bitcoin entry points (when the index turns green).
The Dollar and Its Impact
The US Dollar Index (DXY) plays a significant role. A break below 101 in the DXY could act as "rocket fuel" for Bitcoin, as it reflects market sentiment on liquidity.
The US Debt Situation and Long-Term Outlook
Rising US debt could further contribute to favorable liquidity conditions for Bitcoin, potentially leading to higher prices.
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A Cautiously Optimistic View
While Coutts acknowledges the need for multiple indicators to confirm a bullish shift, he believes Bitcoin might anticipate this change and react before traditional indicators catch up.
A Potential $150,000 Price Target
If Bitcoin surpasses its all-time highs, Coutts suggests it could climb towards $150,000 in this cycle.
With this analysis, investors can stay informed about potential factors influencing Bitcoin's price movements and make informed investment decisions.
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Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. The cryptocurrency market is subject to high volatility and speculation. Conduct your research before making any investment decisions.
Source:NewsBtc
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