The crash signal proven by the past 3 cycles… Bitcoin's true bottom is still far off

▲ Bitcoin (BTC) Crash / ChatGPT Generated Image ©

A shocking analysis has emerged, overturning the market's conventional wisdom that the correlation between the global broad money supply (M2) and Bitcoin (BTC) has broken down. It's a frightening warning that while the leading asset first reaches its peak and consolidates, M2 belatedly reaches its highest point, and at that very moment, a true market crash begins.

According to the cryptocurrency media outlet Bitcoinist on April 24 (local time), virtual asset analyst KillaExBT diagnosed that the correlation between the two indicators is still perfectly functional, based on an analysis of three past bull and bear market cycles. The market had recently concluded that the link between Bitcoin price and the M2 indicator had broken due to a decoupling phenomenon, but this is a misconception stemming from a complete misunderstanding of how the correlation works.

The analyst pointed out that investors commonly believe that M2 first peaks, followed by Bitcoin's peak, but the actual historical trend has unfolded in the opposite way. While Bitcoin price reaches its peak first and enters a consolidation phase, M2 continues to draw an upward curve. Subsequently, the pattern has repeated where, the moment M2 finally reaches its peak, Bitcoin plummets into a bear market, an endless downward trend.

He noted that the current M2 indicator has not yet peaked and continues to trend upwards. If this analysis is correct, the current price decline experienced by the leading asset is not yet over. Rather, a full-scale price crash for Bitcoin could begin precisely when the M2 indicator stops rising and turns downwards.

The analyst emphasized that there is a low probability that this pattern, which has repeated without a single error in the past three market cycles, will be an exception this time. Therefore, he advised investors to closely monitor when the M2 indicator will reach its final peak and thoroughly prepare for the upcoming shock before Bitcoin confirms its true bottom.

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