🔥 Bitcoin In An Accumulation Phase Since 2017? M1 Analysis

9 Mar 2022

M1 Money Supply (M1SL): "M1 is the money supply that is composed of currency, demand deposits, other liquid deposits—which includes savings deposits. M1 includes the most liquid portions of the money supply because it contains currency and assets that either are or can be quickly converted to cash." - Investopedia

The M1SL amount is important since it tracks the amount of money in an economy that is able to be deployed quickly into the economy. If people have more to spend, they will generally spend more as a result of this.

When we take a look at the $ value of BTC divided by M1SL, the chart has been trading relatively flat since 2017. As seen on the chart, there's a strong support/resistance area between 1.65 and 3.2

With the huge amount of money that has been printed since the Corona crash, BTC should've been much higher than where we are now, potentially even 3x-5x higher. However, on the grand scale we've been trading sideways.

Assuming that the upward trend will continue, I think that we're in a phase of accumulation since topping in 2017, where we had the highest value compared to M1SL ever. Be aware that there's also more potential downside, see the dotted support for example. This support has held for well over 8 years now, so in case we drop further I'm expecting this support to hold.

Happy trading!