Legendary Trader Peter Brandt Reveals Key Bitcoin (BTC) Chart

An important chart first shared by Raoul Pal has recently been highlighted by prominent cryptocurrency trader Peter Brandt. This chart illustrates the relationship between the price of Bitcoin and the global M2 money supply, providing valuable insight into how macroeconomic factors, particularly liquidity, influence the performance of the cryptocurrency.

The data indicates that Bitcoin’s price has generally trended in alignment with, though slightly lagging behind, the growth of the global money supply. This correlation suggests that overall market liquidity plays a significant role in determining Bitcoin’s value. As the global circulation of money increases, demand for Bitcoin tends to rise, subsequently boosting its price. Further analysis by Raoul Pal also reveals a similar trend when examining the GMI Total Liquidity Index, which serves as another gauge of global liquidity alongside the Bitcoin-M2 correlation.

Both charts support the notion that Bitcoin commonly experiences price increases during periods of rising liquidity. Pal is optimistic about further growth in both M2 and liquidity, which may bolster a bullish outlook for Bitcoin through the end of 2024. According to Brandt’s technical price chart, Bitcoin is currently oscillating within a significant downward channel with strong resistance near the $60,000 mark.

The price has faced repeated rejections at this upper boundary, indicated by the 200-day EMA. However, if global liquidity continues its upward trend as suggested by the M2 and GMI Total Liquidity Index patterns, Bitcoin might successfully breach these resistance levels and initiate a substantial price rally.

In simpler terms, as more money flows into the global economy, the demand for Bitcoin could rise, resulting in an increase in its price. This macroeconomic analysis highlights the necessity of understanding liquidity dynamics when predicting the future movements of Bitcoin.