A closely watched crypto strategist says Bitcoin (BTC) just delivered a signal last seen before the dramatic rallies of the 2017 bull market cycle.
Pseudonymous analyst TechDev tells his 452,600 followers on the social media platform
According to TechDev, the same thing happened in the early months of 2017 before Bitcoin posted gains of over 2,600% in less than a year.
“You’re looking at Bitcoin’s first breakout relative to the M1 money supply since March 2017, when it went historically parabolic for nine months.”
M1 money supply tracks the amount of liquidity in the U.S. financial system by adding up all physical money, including coins and currency, demand deposits, traveler’s checks, and other checkable deposits.
According to TechDev the signal is suggests that traders and investors are underestimating Bitcoin’s upside potential in this market cycle.
“Comparisons and trend projections regarding 2021 may lead to things being dramatically underestimated…
One interpretation:
In 2021, BTC was pushed to new USD highs by the increased money supply.
In 2024 it came there at its own request (and thus broke out against M1).
Add expected M1 growth this time and we likely see BTC partially exceeding expectations based on 2021.”
TechDev says BTC could soar to over $400,000 in less than a year if it follows in the footsteps of the 2017 bull market.
‘I know it’s ridiculous. Not my call. $70,000 > $420,000 in a year sounds crazy, just like $1,0000 > $20,000 did. I wouldn’t have mentioned that either.”
At the time of writing, Bitcoin is trading at $67,844.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: DALLE3