23 hours ago
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Bitcoin price extended its decline by 14.5% from the weekly open, falling to $82,250 as Donald Trump’s EU tariffs added to the bearish market sentiment.
The US President threatened to impose 25% tariffs on EU imports including auto, claiming that the bloc was created to “screw the United States”. In response, the European Union has vowed to respond to any tariff “immediately and firmly”, fueling trade war jitters.
However, whales are buying the fear as the Global M2 money supply reveals that the largest cryptocurrency is quickly approaching a bottom.
Global M2 Chart Reveals Major Bitcoin Price Bottom
Global liquidity remains the best predictor for Bitcoin’s trajectory, even if there is a slight lag between the two.
The Global M2 money supply project the current BTC correction months ago after it started to contract in September 2024 and had fallen by nearly $4 trillion by December.
Prominent macro analyst and BTC investor Joe Consorti highlights that the Bitcoin price could bottom near the $70k level, considering its strong correlation with the M2 chart.
Several notable agreements have agreed with Consorti’s assessment. Nebraskangooner, who accurately projected the BTC pullback weeks in advance, now believes that $74k would be an “epic entry”. Cheds Trading is also bidding in the $72k – $74k region.
Why It’s Time To Be Bullish On Bitcoin?
Macroeconomic uncertainty is casting a shadow over the Bitcoin bull market. Donald Trump’s threat of 25% tariffs on EU imports won’t help the “stagflation” concerns that the recent slowing growth and sticky inflation have sparked.
However, there is considerable evidence that the market is overly bearish. For starters, prominent macroeconomist Julian Bittel claims that the financial conditions will ease significantly in Q2 2025.
Despite this, the Crypto Fear and Greed Index fell to its lowest level since June 2022, almost certainly an overreaction.
The Bitcoin Relative Strength Index (RSI-14) has also reached the “oversold” territory in the two-day timeframe. Merlijn The Trader reveals that BTC rallied by 90% and 175% on the previous two such occasions.
Sidelined investors should ideally wait for the $72k -$74k range for the best entry point. However, the Bitcoin price could also reclaim its previous range by a daily close above $91.5k, which would be a signal of major strength and could accelerate the move to a new all-time high.
These Altcoins Are Also Approaching Breakout Levels
Litecoin ($LTC) has been one of the strongest altcoins on the market despite the broader crash. All eyes are now on the $143 resistance level, and a breakout could result in a push towards new all-time highs.
Meanwhile, Donald Trump’s World Liberty Financial continues to balloon its ETH holdings. Ethereum continues to be in experts’ lists of the best cryptos to buy, despite its underperformance thus far.
Sidelined investors should also keep an eye on XRP. A flip of the $2 resistance would make it an attractive buy.
Low-cap crypto assets are also in high demand. Popular presale token Solaxy (SOLX) is in the final stages of its presale and is seeing significant hype and FOMO. It has already raised nearly $24 million in its ICO and is among several analysts’ lists of best new cryptos to buy.
Being the first prominent Solana Layer-2 coin, it is no surprise that investors believe it is highly undervalued during its presale, especially when comparing it to the multibillion-dollar valuations of ETH layer-2 coins.
Several prominent investors are even calling Solaxy the next 10x crypto.
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