The M2 line remains flat, suggesting no new liquidity entering the market. Without additional liquidity, the demand for risk assets like Bitcoin tends to stay muted. This limits the chances of a strong bullish reversal unless there's a shift in macroeconomic conditions.
Bitcoin is currently trading at $86,716, near the critical $86,000 support zone. If this level fails, the next major support lies around $85,000.
The RSI at 27 still signals oversold conditions, but given the lack of liquidity expansion (as shown by the flat M2), a bounce may be limited unless external factors increase risk appetite.
Momentum indicators show persistent bearish pressure, with no significant divergence suggesting a strong recovery.
Prediction Scenarios for Tomorrow:
Bearish Scenario (Most Likely - 70% Probability)The flat M2 suggests continued liquidity constraints, favoring bearish sentiment.
If $86,000 support breaks, Bitcoin could test $85,000, with a possible wick lower depending on selling momentum.
Strong selling pressure could push it toward $83,000 if no short-term bounce occurs.
Neutral Scenario (20% Probability)Bitcoin holds $86,000 and trades sideways between $86,000–$88,909, reflecting a lack of directional conviction in the absence of M2 expansion.
This range-bound action would signal that traders are waiting for macroeconomic catalysts or increased liquidity flows.
Bullish Scenario (10% Probability)A surprise uptick in M2 would increase market liquidity, potentially triggering a short squeeze.
In this case, Bitcoin could bounce toward the $88,909–$91,130 resistance zone. However, without sustained liquidity growth, any rally would likely face strong rejection at these levels.
Conclusion:
Given the flat M2, Bitcoin is expected to remain under bearish pressure, with the most probable outcome being a retest of the $86,000 support and a potential decline toward $85,000 if this level fails. A short-term bounce is possible, but unless the Global Money Supply M2 shows signs of growth, any upward movement will likely be capped by strong resistance. Traders should monitor M2 movements closely, as any expansion could swiftly shift sentiment from bearish to bullish.
Bitcoin is currently trading at $86,716, near the critical $86,000 support zone. If this level fails, the next major support lies around $85,000.
The RSI at 27 still signals oversold conditions, but given the lack of liquidity expansion (as shown by the flat M2), a bounce may be limited unless external factors increase risk appetite.
Momentum indicators show persistent bearish pressure, with no significant divergence suggesting a strong recovery.
Prediction Scenarios for Tomorrow:
Bearish Scenario (Most Likely - 70% Probability)The flat M2 suggests continued liquidity constraints, favoring bearish sentiment.
If $86,000 support breaks, Bitcoin could test $85,000, with a possible wick lower depending on selling momentum.
Strong selling pressure could push it toward $83,000 if no short-term bounce occurs.
Neutral Scenario (20% Probability)Bitcoin holds $86,000 and trades sideways between $86,000–$88,909, reflecting a lack of directional conviction in the absence of M2 expansion.
This range-bound action would signal that traders are waiting for macroeconomic catalysts or increased liquidity flows.
Bullish Scenario (10% Probability)A surprise uptick in M2 would increase market liquidity, potentially triggering a short squeeze.
In this case, Bitcoin could bounce toward the $88,909–$91,130 resistance zone. However, without sustained liquidity growth, any rally would likely face strong rejection at these levels.
Conclusion:
Given the flat M2, Bitcoin is expected to remain under bearish pressure, with the most probable outcome being a retest of the $86,000 support and a potential decline toward $85,000 if this level fails. A short-term bounce is possible, but unless the Global Money Supply M2 shows signs of growth, any upward movement will likely be capped by strong resistance. Traders should monitor M2 movements closely, as any expansion could swiftly shift sentiment from bearish to bullish.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
#Bitfate Connecting People With Real Money. A blockchain project dedicated to fast, intelligent, and transparent decentralized services accessible to everyone
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.