U.Today – Recently, , reached a major turning point for the cryptocurrency market, which reached an all-time high on one of its most important charts. To highlight the macroeconomic factors driving Bitcoin's current bull run, the chart in question shows the relationship between global liquidity (M2) and the price of the cryptocurrency.
Right now, Bitcoin is trading at around $70,868, clearly on the rise. A strong bullish trend is evident on the chart, which shows a sequence of highs and lows. Moving averages are among the key technical indicators that point to further bullish pressure.
By breaking key resistance levels, the price has solidified its position above $70,000. Rising trading volumes, indicating strong buying interest, support this breakout. The second chart offers a more complete view, showing the price of Bitcoin in relation to global liquidity (M2).
With a staggering $94 trillion in global liquidity, Bitcoin's price is close behind. In the past, rising Bitcoin prices have frequently coincided with increases in global liquidity. This relationship highlights Bitcoins as a store of value and a hedge against inflation in a time of loose monetary policy. Aggressive monetary policies by central banks in response to economic difficulties are primarily responsible for the increase in global liquidity.
Investors view Bitcoin as a hedge against the potential devaluation of fiat currencies as a result of the unprecedented amounts of money being pumped into the global economy. The market's increased confidence in Bitcoin's long-term value proposition is reflected in the cryptocurrency's price, which has reached local highs as a result of this influx of liquidity. Technical analysis indicates that there are multiple bullish indicators on the Bitcoin price chart.
The moving averages on the daily chart further confirm the bullish trend, with the 50-day moving average moving above the 200-day moving average. Additionally, with higher volumes on bullish days compared to bearish days, volume trends support the price action.
This article was originally published on U.Today.
