After nearly two years of the absence, a fundamental signal of Bitcoin bull has emerged and it predicts a twofold increase in the price. This signal, followed keenly by crypto analysts, has in the past often led to significant Bitcoin price booms. The signal was raised by the Chief Crypto Analyst at Real Vision, Jamie Coutts who posted it on his social media accounts. Coutts said the signal is indicative of a likely break out to the upside of Bitcoins price and that it could easily double its current value.
Historical Significance of the Bull Signal
The greatest signal to buy Bitcoin is named the global liquidity model bullish Bitcoin signal; its author, Jamie Coutts, posted the signal on 15 August. Coutts said that according to his composite global liquidity momentum model (MSI), which tracks the global money flow, the new favourable phase began in November 2023. He remembered that after the model switched to bullish in the past, Bitcoin surged 75 per cent from November to April. The same signal has in the past been associated with significant upward Bitcoin Price Movements in 2017 and 2020 of 19x and 6x respectively.
Taking into account this signal, Coutts pointed out that there is a strong possibility of ‘‘a dramatic price increase. ’’ ‘My composite global liquidity momentum now gives a bullish regime signal for the first time since November 2023,’ he posted on X (formerly Twitter). Remember, btc/USD surged by almost 75% from November to April before the regime turned bearish.
This is an important Bitcoin bull signal which is commonly regarded as one of the most effective signal for the market movement; and its appearance now has brought hope to the Bitcoin investors and traders again.
Potential for a Doubling of Bitcoin’s Price
Flashing of this key Bitcoin bull signal has resulted to people wondering to how highs the price of Bitcoin can reach. In an interview, LTC trader Jamie Coutts said that such a bullish signal could increase the value of Bitcoin by two to three timers and take it up to $120,000. But there is a catch As reported by Coutts, this then assumes several factors such as the weakness of the USD as represented by the DXY or overall global liquidity.
If Bitcoin has to achieve this target, then the DXY has to be comfortably below 101, encouraged by further central bank liquidity, as pointed out by Coutts. “This would take global M2 well over $120 trillion this cycle. ”
On the positive side, near-term is still full of the high potential for bitcoin to skyrocket in price, that has to be good news for those who own Bitcoins. Over $1. A Bitcoin options worth 4 billion US dollars are expiring on the 16th of August. This could potentially exert bearish pressure on the Bitcoin of the Bitcoin unless it reclaims above the $60 000 prior to the options expiration.
Coutts and other analysts also agree that when global liquidity is growing, call it by any name and the demand for new algorithms and the rate of new investment into them as instruments, which is Bitcoin is also likely to increase.
The Role of Global Liquidity and Spot Bitcoin ETFs
Possibly one of the most important factors that will determine the price of Bitcoin in the next few months will be the position of world liquidity. Growing M2 money supply in the world might help Bitcoin to jump and stay above $60,000 in future as the fuel.
The Bank of Japan extended $400mn, and the People’s Bank of China $97bn of new credit to the international money base in the past month. For the year as a whole, counting by Coutts, the money supply grew around the globe by $1. This totaling to 2 trillion during this period. He said this feature is set to persist, given the dynamics of the fractional reserve banking structure.
That is actually the typical position in a credit-based fiat money fractional reserve system, replied Coutts. “The money supply has got to grow without stopping to support the outstanding debt and if it doesn’t everything will deteriorate. ”
Another item to track down is funds’ inflows into spot Bitcoin exchange-traded products (ETPs). Information extracted from the Farside Investors’ database revealed that ETF inflows were negative, and US ETFs in particular recorded negative $81MM net outflows on 14 August. This was after two days that had registered positive fund flows indicating that investors might be in doubt.
Most of the foregoing aspects suggest that the future performance of Bitcoin will be a function ofthis multiplicity of factors. If global liquidity is to increase and ETF inflows are to rebound, then Bitcoin could benefit from the positive signal for a big price appreciation.
A Quick Wrap Up
One Bitcoin bull signal has flashed for the first time since February this year, and the crypto community is all eyes. With past examples of considerable price increases after similar signals, the likelihood of Bitcoin price doubling has propped up the market, again. However, this outcome will be subject to variation influenced by Global liquidity status and investors’ that may be prevailing on the spot Bitcoin ETF market. All the focus will be on Bitcoin to determine whether it will respond positively to the positive signal as investors’ expectations surge.
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