Bitcoin Price Surges 9% as Bullish Signals Mount

Bitcoin’s price has been hovering close to its all-time high (ATH), sparking speculation among market participants about its future trajectory. According to the Bitcoin Stock-to-Flow (S2F) model, the current cycle still has significant room for upward movement. Historically, Bitcoin’s price has closely followed the S2F curve, which currently suggests a potential price increase. The model indicates that Bitcoin is still below the forecasted trend, implying that the cycle peak may not have been reached yet. If history repeats itself, Bitcoin could see substantial gains before its peak.

In addition to the S2F model, several bullish signals have emerged for Bitcoin. The cryptocurrency has broken above a long-term downtrend that previously acted as resistance, confining the price since late-2024. Following this breakout, Bitcoin retested this zone twice at around $100,000, each time as support, validating the legitimacy of the breakout. This bullish retest was accompanied by a significant MACD reversal, where the MACD line crossed the Signal line three times in the last three months. Each crossover has led to an uptrend in the price, with the latest corresponding to a thrust up to $109,000. The histogram bars also reinforced bullish momentum across the board, indicating little selling pressure compared to previous levels. These signals suggest a market sentiment reversal in favor of the bulls, potentially allowing Bitcoin to revisit old highs and break new price grounds.

Furthermore, rising global liquidity and aggressive buying activity are contributing to Bitcoin’s bullish outlook. The Global M2 chart shows a sharp increase in liquidity, which has historically preceded Bitcoin rallies. The current dislocation places Bitcoin behind M2 by around 11 weeks, suggesting that the crypto market may be ready to catch up, especially as liquidity continues to trend higher. Binance registered a hike in its net taker volume beyond $100 million, indicating bullish buying activity. Historical trends suggest that Bitcoin may continue its ascent similar to M2, but there may be some investor apprehension due to recent stagnation. An extended liquidity twitch and forceful macro-economic cues could spark a new Bitcoin boom. Monitoring on-chain movements and macro indicators will be crucial in determining the market’s short and medium-term direction.