Bitcoin price surged past $109,000 today with 3.28% gain, signaling a bullish Cup and Handle breakout that could pave the way for a new all-time High. The rally follows weeks of consolidation and a textbook technical setup, marking the most significant breakout in BTC since early May.
The daily chart shows a clear Cup and Handle structure, with a round base formed between March and May and a consolidated handle through June. The Breakout above $107,000 resistance has now triggered a bullish move with trading volume also picking up.
As bullish market sentiment is gearing up, with traders watching daily close above $110,000 to confirm the breakout. The RSI remains just under 60 offering room for upside without entering overbought territory. If the price successfully breaks above its previous high, then BTC price could rally to $168K as per the cup depth of 50%.
Global M2 Supports the BTC Bull Run
Global M2 supply has been steadily rising suggesting that liquidity is expanding which is a bullish catalyst for Bitcoin. It is the total money supply which includes M1 (cash and bank deposits), savings accounts, time deposits, and mutual funds. Historically, Bitcoin has followed global M2 in 12 weeks of gap, which implies room for BTC to grow.
Crypto influencer Collin Talks posted a macro-based thesis earlier today supporting this potential breakout. He heightened three more bullish formations that aligned. An Inverse Head and Shoulders that target BTC price to $150,000, followed by Bull Flag which shows continuation after consolidation. And a bullish pennant which signals upside following symmetric consolidation.
As M2 money supply hit a new all-time high of $21.94 trillion, now it’s time for bitcoin to hit a new ATH. The $110,000 will be a psychological barrier, but following that next target for bitcoin would be $116,000, following which the optimist target would be to fulfill Cup and handle Breakout.
Fundamentals Flashing Green For Bitcoin
Beyond the charts, fundamentals are flashing green, as On chain analytics firm Glassnode reported most Bitcoin holders are now back in profits following the rebound to $107,000. Interestingly distribution remains low, with long term holders (LTH) not rushing to sell. As realised profits are declining it indicates that investors are holding out for higher prices rather than cashing out early.
Meanwhile, the spot Bitcoin ETF inflows continue to provide steady support to the market. Bitcoin ETFs have seen consistent inflows in June, adding institutional momentum to the rally.
Also Read: BlackRock’s Bitcoin ETF Now Makes More Money Than Its S&P 500 Fund
