Bitcoin Surges Above $109,000 Amidst Record Global Money Supply

Bitcoin’s price has surged above $109,000, experiencing an impressive rally after the global money supply (M2) climbed to an unprecedented high of over $55 trillion. This surge, recorded on Wednesday, saw Bitcoin reaching $109,730 for the first time since mid-June, indicating a strong recovery trend.

Should Bitcoin manage to close the daily candle above $108,500, it would confirm a bullish engulfing pattern, further elevating expectations for new highs in the near future.

Surge in Open Interest Indicates Renewed Momentum

The recent price movement from $105,200 to $109,500 has been accompanied by a notable increase in derivatives activity, specifically a 10% jump in open interest (OI) across major futures exchanges. This translates to approximately $3.2 billion flowing into the market, primarily driven by long positions. Such behavior suggests growing confidence among traders regarding a bullish continuation.

Despite the price increase and rising open interest, funding rates across perpetual futures markets have remained relatively stable. This balance between long and short traders signifies that the rally is not fueled by excessive leverage, implying a potentially more sustainable uptrend. Additionally, a significant short squeeze occurred, liquidating over $196 million in short positions within the past 12 hours, further enhancing Bitcoin’s surge past critical resistance levels.

The elevated Bitcoin Coinbase Premium Index during this time underscores solid spot buying pressure from both institutional and retail investors in the U.S., reinforcing the bullish outlook.

Analysts Eye Potential All-Time Highs

With Bitcoin breaking free from a recent sideways trading range, market analysts are growing increasingly optimistic about the possibility of a new all-time high. According to trader Rekt Capital, achieving a record weekly close above $109,300 this Sunday could push Bitcoin above its final major resistance zone, unlocking further price discovery.

Adding to this bullish perspective, analyst Jackis noted that Bitcoin has recently hit its lowest volatility levels since the beginning of 2023. Historically, such levels have preceded significant volatility spikes within a five-week window, suggesting a substantial price movement may be imminent.

Technical analyst Titan of Crypto pointed out a bullish MACD crossover on the daily chart as a key momentum indicator. Bitcoin is currently attempting to break out from a bullish flag pattern, with a successful push likely aiming for the $137,000 mark. This scenario indicates a potential “magnet effect” drawing prices higher.

As Bitcoin continues to captivate the attention of investors and crypto enthusiasts alike, the landscape remains dynamic and full of possibilities. Analysts and traders will be closely watching how these developments unfold, particularly as Bitcoin approaches key technical levels that could define its price trajectory going forward.