When taking into consideration changes in fiat money supply, bitcoin has already tested the previous all time high in 2017 this June, with that support level holding.
This new measure uses the Bravenewcoin Liquid Index for bitcoin (BLX) which averages bitcoin’s price across exchanges.
It then compares that to the M2 money supply, a measure provided by Fed’s Fred API under the ticker of FRED:WM2NS.
That’s to account for changes in the nature of the dollar as while bitcoin reached $20,000 in 2017, with some bears saying it might test that $20,000 now after coming down from $64,000, it is of course the case that $20k in 2017 is not the same as $20k today because trillions of dollars have been printed.
Thus when we add those printed funds to the equation, it turns out bitcoin already has gone so low as to test the previous all time high and that held. While in plain price, the lowest it went to is $28,000.
That suggests dividing BTC/M2 shows $20,000 in 2017 is now worth $28,000 four years later, with that price of $28,000 being bitcoin’s biggest support level.
BTC bounced off $28,000 when it tested that level last month, indicating there’s considerable buy pressure there.
Now at $33,000, bitcoin is sidewaying above the previous all time high according to this measure, with it to be seen whether it gradually rises from there, or it goes below even 2017.