Bitcoin (BTC) Price May See New All-Time Highs by Targeting $130k

Bitcoin looks like it has found stability within the $80,000 range after trading within $80,000 and $90,000 throughout the past seven days.

Crypto analyst Colin, also known as "The M2 Guy," has identified a close correlation between Bitcoin (BTC) and the global M2 money supply. In his latest analysis, shared on X (formerly Twitter) on Thursday, the analyst predicts that an impending liquidity influx could propel BTC into a major price move in two different scenarios by March or April.

Bitcoin’s (BTC) price action against the global money supply is setting up for a big move in the coming months. This outlook, noted by analyst Colin, known as “The M2 Guy,” on X, is based on the timing of a liquidity shift between global markets and BTC.

His analysis presents two possible scenarios based on historical patterns of money supply expansion and Bitcoin’s price response, each programming a major move either in late March or late April.

M2 Money Supply And Bitcoin’s Liquidity-Driven Rally

The global M2 money supply, which measures the total amount of liquid money circulating in an economy, is a good measure for predicting capital flows into risk assets, including BTC. Notably, Colin’s analysis focuses on Bitcoin’s price offset with the Global M2 money. Specifically, the analyst highlights the 70-day offset and the 107-day offset.

Bitcoin’s price can be compared with different offsets with the Global M2 money supply, but analysis shows that these two offsets have the best correlation with BTC’s price across multiple timeframes. However, the mathematical correlation seems to be stronger in the case of the 107-day offset.

According to the analyst, both of these offsets have been good at picking up the turning points of Bitcoin’s price chart throughout the bull and bear markets since 2011. Moreover, both offsets have been instrumental in identifying the timing of Bitcoin’s major liquidity shifts.

For instance, in 2021, when the global M2 money supply started expanding again, there was a 70-day delay before the liquidity shift into Bitcoin occurred, and the cryptocurrency's price began a new bull market.

BTC’s Incoming Price Targets

Now, as the analyst predicts, the bulk of the liquidity is expected to flow out of the markets and into Bitcoin around March 24, aligning with the 70-day offset.

However, if the liquidity shift follows the more historically accurate 107-day offset, then the major move would take place around April 30.

Regardless of which timeline plays out, the expectation of liquidity flowing into Bitcoin is the same. And this flow of liquidity into BTC could be the much-needed primer to push the asset above the $100,000 price level again and potentially to new all-time highs.

Although Colin’s analysis does not specify an exact price target, projections of the global M2 money supply point to a break above $120,000 in each case. The 70-day offset puts Bitcoin at a price target around $122,000 before June.

Meanwhile, the second scenario, which aligns with the 107-day offset, projects a slightly delayed but potentially more powerful rally and BTC reaching around $130,000 by July.

At the time of writing, Bitcoin is trading at $85,850, up by 3% in the past 24 hours. Current buying trends show that Bitcoin is now in an accumulation zone.