Bitcoin (BTC) Turns Bullish, Surging by 3.66% and Reclaiming the 20-day EMA

After days of uncertainty, Bitcoin has turned bullish in the past 24 hours, surging by 3.66% and hitting a daily high of $87,443.27.

After days of uncertainty, Bitcoin has turned bullish in the past 24 hours, surging by 3.66% and hitting a daily high of $87,443.27. The leading digital asset has also reclaimed the crucial 20-day EMA ($85,703) and is currently testing this level as support, according to CoinMarketCap.

However, Fibonacci retracement levels indicate key resistance areas, with the 1.618 level at $85,939 acting as a crucial pivot point. If BTC can hold above this level, the next targets would be the 2.618 ($88,023), 3.618 ($90,107), and 4.236 ($91,395) extensions.

At the same time, the MACD indicator suggests that bullish momentum may be slowing down, as the histogram bars have started shrinking.

If Bitcoin faces rejection at these resistance zones, a pullback to the 0.618 ($83,858) or 0.786 ($84,205) Fibonacci levels could be possible before the next leg up.

Why BTC May Continue to Rise

Experts believe one of the key reasons Bitcoin may continue to rise is its relationship with the M2 money supply.

The M2 money supplies the total amount of money in circulation, including cash, checking deposits, and easily accessible savings. Historically, Bitcoin price has shown a strong correlation with the expansion of M2.

The idea is that as more liquidity is injected into the economy, the value of scarce assets like Bitcoin tends to rise at an accelerated rate.

Because of this correlation, even a modest 10% increase in M2 liquidity could potentially more than double Bitcoin’s price.

This effect is due to a phenomenon known as power-law leverage, which means that Bitcoin’s price reacts disproportionately to changes in available liquidity.

On the other hand, BitMEX’s Arthur Hayes feels that Bitcoin’s recent drop to $77,000 may have marked a bottom.

He attributes the potential for renewed bullish momentum to the conclusion of quantitative tightening (QT) by April 1 and the possibility of renewed quantitative easing (QE) or exemptions to the Supplementary Leverage Ratio (SLR).

Meanwhile, Strategy’s Michael Saylor remains steadfastly bullish, claiming that investors only have a couple of days left to buy Bitcoin (BTC) for under $100,000, “and then you will never see five-figure Bitcoin again”.