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Bitcoin Price Trends: Potential Correction Towards $70K

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Bitcoin Price Trends: Potential Correction Towards $70K

Bitcoin Price Could Correct to $70,000, Analyst Warns

Bitcoin Price– Bitcoin’s price could face a significant pullback toward $70,000, according to market analyst Joe Consorti. The potential correction could occur if the cryptocurrency continues its long-standing correlation with the global money supply, particularly M2, which includes cash and short-term bank deposits. Consorti’s analysis suggests that Bitcoin’s price movement has closely mirrored M2 trends in recent months, signaling that Bitcoin may experience a correction before reaching the psychological $100,000 milestone.

Bitcoin and M2 Money Supply: A Historical Correlation

Bitcoin Price Trends: Potential Correction Towards $70K

In a recent post on X (formerly Twitter) on Nov. 26, Consorti highlighted that Bitcoin’s correlation with global M2 has been shockingly accurate since September 2023. He pointed out that Bitcoin has tracked the M2 money supply, with a lag of about 70 days, indicating that as M2 grows, so too does Bitcoin’s price. Historically, increases in the M2 money supply have been linked to Bitcoin bull runs, as rising M2 often signals inflationary pressures, prompting investors to turn to riskier assets like Bitcoin as a hedge against inflation.

However, Consorti warned that if this correlation continues, Bitcoin could be due for a correction of 20-25%. He noted that the market will have to wait and see if Bitcoin follows the trend downward or if it will find support at a higher level.

Potential for a Bitcoin Correction Before $100,000

Bitcoin Price Trends: Potential Correction Towards $70K

Bitcoin’s price has recently seen significant gains, particularly in the wake of the U.S. presidential election, but it narrowly missed breaking the $100,000 mark. At the time of writing, Bitcoin was trading at $91,988, after peaking at $99,571 on Nov. 23. This puts the cryptocurrency in a delicate position, with some analysts predicting a pullback before any further upward movement.

Given the historical relationship between Bitcoin and M2, some market observers are cautious about the near-term prospects for the cryptocurrency. While Bitcoin’s long-term growth trajectory remains strong, a brief correction could be on the horizon if the current trend in global liquidity continues to weaken.

Diverging Views on Bitcoin’s Price Action

Not all analysts agree with Consorti’s prediction. David Quintieri, a market commentator, argued that Bitcoin’s volatility makes it difficult to accurately track the cryptocurrency against any single metric. He suggested that while correlations with M2 and other financial indicators may seem plausible, Bitcoin’s price is ultimately driven by a combination of factors, including market sentiment and global economic conditions.

Crypto commentator Sam KB also weighed in on the debate, pointing out that although Bitcoin has typically followed M2 trends in the past, this cycle seems to be different. In a post on Nov. 22, KB noted that M2 was nearing its lowest point this cycle, yet Bitcoin was still rallying, suggesting that other factors could be influencing Bitcoin’s price action at this time.

Bitcoin Price Trends: Potential Correction Towards $70K

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