Bitcoin Heading Towards $130,000? M2 Analysis Gets Investors Excited!
Bitcoin breaks resistance, preparing to enter a new bullish cycle
Bitcoin price is now just 4% away from its all-time high , and according to analyst Doctor Profit, the market is showing positive technical signals .
Specifically, Bitcoin has broken through the diagonal resistance line on the monthly chart – a resistance area that has caused the price to be rejected continuously from November 2024 to February 2025.
After successfully retesting the $114,000 mark last Friday , Bitcoin price is forming “ strong bullish momentum .”
“This bullish chart will soon take over social media,” Doctor Profit commented.
US-EU trade deal gives market a breather
In addition to technical factors, Bitcoin's rally is also supported by a large-scale trade deal between the US and Europe just announced by the White House.
The deal includes $750 billion worth of energy exports from the US and $600 billion in investment from the EU, helping to ease the pressure from long-standing tax policies that have been a major hurdle for both the stock and crypto markets.
Doctor Profit believes that this event has removed an important bottleneck , paving the way for positive sentiment to spread among investors.
M2 money supply increases slightly, suggesting next bull cycle
From a macro perspective, this expert emphasized the role of M2 money supply - the factor that pushed Bitcoin price up 800% after the easing period in 2020 .
Since the beginning of 2025, M2 has increased by 2.3% despite the Fed's tightening monetary policy. Notably, in May and June alone, M2 increased by 0.63% per month - the highest level of the year.
With Bitcoin's reaction lag of around 60–90 days , Doctor Profit predicts that the price could increase by 15–17.5% in the next few weeks , approaching the $130,000 mark .
The upcoming FOMC meeting, although not expected to cut interest rates, is still a factor to watch to determine monetary trends in the coming time.