Bitcoin Breakout Nears $109K Amid Record Global Money Supply
Key Points:
- Bitcoin (BTC) surpassed $109,000 Thursday, its highest level since June 12, fueled by a record global M2 money supply exceeding $55T.
- Bitcoin Futures Open Interest surged ~10% ($3.2B), underpinned by long positions, with $196M in shorts liquidated and an elevated Coinbase Premium Index indicating strong buying pressure.
- Technical indicators point to a potential breakout near $109K, with some analysts forecasting targets near $137K, as volatility dips to record lows since 2023.
Technical analysis suggests a strong bullish engulfing pattern could form if BTC holds above $108,500 on the closing candle.
The recent price gain followed a sharp increase in Bitcoin derivatives activity. Open interest across major BTC futures exchanges jumped by 10%, equivalent to $3.2 billion, indicating significantly higher capital inflow, primarily from long positions.
Despite the price increase, perpetual futures funding rates remained stable, suggesting balanced trader positioning and that leverage played a secondary role in the rally. Notably, around $196 million in short positions were liquidated within the last 12 hours, contributing to the rapid price movement.
The so-called Coinbase Premium Index remained elevated during the rally, tracking sustained spot buying pressure, particularly from U.S.-based institutional and retail investors.
Market participants see the breakout attempt as a potential catalyst for new all-time highs. Some analysts anticipate resistance near $137,000, while the extremely low volatility observed by others suggests a significant upward move could occur relatively shortly.
For further context, readers are directed to related articles exploring Bitcoin’s price targets as M2 reaches record highs. Furthermore, the concurrent U.S. employment data release is noted in relation to the current market trend.
Disclaimer: This article is not intended to provide investment or trading advice. Engaging with financial markets carries inherent risks, and individuals are advised to conduct their own research.
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