The U.S. money supply is expanding at a rapid pace, hitting $22.12 trillion after a $94.6 billion increase in the latest reporting.
Analysts argue that this surge in liquidity could provide fuel for Bitcoin and other cryptocurrencies as investors seek assets that can protect against monetary expansion.
At the same time, Bitcoin is testing a long-standing support line that has historically triggered rallies. Crypto Rover points to rebounds in September/October 2023, August/September 2024, and March/April 2025, all from the same technical level. With Bitcoin now retesting this support in August/September 2025, speculation is mounting that another bounce could be on the horizon.
Adding to the debate, market analyst Ali Martinez warns that Bitcoin is currently facing resistance at around $110,700. Multiple rejections at this level suggest a possible pullback toward $107,200 or even $103,000 if buyers fail to defend support. His charts highlight the channel rejection zone that has repeatedly capped Bitcoin’s upside over the past weeks.
The clash between these two signals—strong macro liquidity inflows and local technical resistance—creates a mixed outlook. On one hand, expanding money supply supports risk assets, but on the other, Bitcoin must break above $110,700 decisively to confirm the next leg higher.
If the support line once again holds, history suggests Bitcoin could rebound sharply, potentially opening the path toward new highs. However, a breakdown could trigger deeper corrections before any sustainable rally resumes.
For now, traders are watching the $107K–$110K range closely, as it will likely determine Bitcoin’s next major move.
At the time of writing, BTC is trading at $111,700 after the bullsih momentum regained its strength.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-at-critical-support-as-u-s-money-supply-surges/