Bitcoin once again demonstrated its strength last week, marking a new all-time high of around $112,000. However, the dynamic upward movement was followed by a moderate correction, which currently brought the price back to approximately $105,000. Despite this setback, the overarching uptrend remains intact. Such consolidation phases are not uncommon in long-term bull markets and can even be healthy for the market structure. Some analysts therefore interpret the current weakness not as a warning sign, but rather as a strategic buying opportunity – and there is a fundamental reason for this.
Bitcoin Analysis: This Correction is a Buying Opportunity
Crypto analyst Joe Consorti does not view the current market correction in Bitcoin as a cause for panic – but as a potential entry opportunity. In a recent post, he refers to the close correlation between the Bitcoin price and the global M2 money supply, which he analyzed based on a Bloomberg chart. Bitcoin typically follows the trajectory of the global M2 money supply, i.e., the US dollar-denominated monetary aggregate, with a delay of about ten weeks.
Specifically, the decline in global M2 suggests a possible short-term correction in the Bitcoin price – with a potential target of around $97,500. However, according to Consorti, the long-term outlook is clear: As the global money supply rises again, Bitcoin will also benefit. Historically, BTC reacts strongly to expansions in the money supply and serves many investors as a hedge against the depreciation of fiat currencies.
Consorti emphasizes that the M2 indicator should not be confused with general liquidity. The aggregate only measures a subset of the money available in USD and is highly dependent on the strength of the dollar. Nevertheless, it provides a reliable leading indicator. The core message: Those thinking long-term should view pullbacks like this as a strategic buying opportunity.
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