Bitcoin Volatility Surges as M2 Correlation Strengthens

Bitcoin is currently experiencing heightened volatility and shifting market sentiment, with key resistance levels at $110,654 and smart money shorting between $107,000 and $109,000. This volatility is accompanied by a strengthening correlation between Bitcoin and global M2 expansion, indicating a macro-driven momentum that could potentially lead to a breakout.

Bitcoin has been holding above the $100,000 support level, with bullish order blocks and Fair Value Gaps suggesting institutional activity and upcoming price action. The current price action reflects evolving behavior with swings and stronger resistance at key psychological levels. The $100,000 zone serves as a vital support base, while short-term resistance at $108,900 and $110,654 creates a ceiling that Bitcoin must clear to turn fully bullish.

During the 2023–2024 cycle, Bitcoin moved steadily within an ascending trend line, driven by strong bullish momentum that pushed prices past key resistances. However, in 2024–2025, the price action has shifted into larger trading ranges, reflecting increased institutional involvement and deeper liquidity zones. The trend line remains intact, though less steep, with candlestick formations alternating between bullish and bearish signals.

The rising correlation between Bitcoin and the global M2 money supply strengthens macroeconomic links. While M2 isn’t a predictive tool, it aligns with Bitcoin’s directional moves. M2 has recently broken its range high, continuing its uptrend alongside Bitcoin’s rise from $50,000 to over $100,000. Consequently, both assets exhibit similar momentum during breakout periods.

Technical indicators point toward consolidation, but underlying buying pressure persists. Volume has decreased slightly, suggesting traders await confirmation. The presence of bullish order blocks near $97,000 indicates strong institutional interest. Hence, Bitcoin remains poised for a significant move once resistance levels are broken.

According to analyst ₿rett, the correlation between Bitcoin and the global M2 money supply strengthens macroeconomic links. While M2 isn’t a predictive tool, it aligns with Bitcoin’s directional moves. M2 has recently broken its range high, continuing its uptrend alongside Bitcoin’s rise from $50,000 to over $100,000. Consequently, both assets exhibit similar momentum during breakout periods.

Bitcoin is showing renewed signs of bullish momentum as it approaches a potential breakout above the $117,500 level. At press time, Bitcoin trades around $102,326, signaling heightened volatility and shifting sentiment across the market. This phase follows earlier bullish moves that pushed Bitcoin above $70,000 before a period of consolidation set in. Price action shows evolving behavior with swings and stronger resistance at key psychological levels.