As the Bitcoin price hovers just 4% below its all-time high of $123,000, crypto analyst Doctor Profit has issued a new report that could spark increased bullish sentiment among investors, suggesting that a new rally could be on the horizon. Bitcoin Price Poised For Growth After Major Trade DealIn a recent post on the social media platform X (formerly Twitter), Doctor Profit highlighted a significant technical development for the Bitcoin price, noting that the cryptocurrency has recently broken through a diagonal resistance line on its monthly chart—a barrier that had proven insurmountable for several months.According to the analyst, the Bitcoin price faced repeated rejections at this crucial resistance level from November 2024 through February 2025. However, this month marked a decisive breakout for the cryptocurrency, followed by a successful retest of the $114,000 level last Friday and a “strong bullish impulse” forming. Doctor Profit emphasized that this breakthrough signals a potential upward movement, asserting that the market is primed for the next leg up. He even predicts that the “bullish chart” will soon dominate discussions across social media.Adding to this optimism are recent developments surrounding a US-Europe trade deal announced on Monday by the White House. Doctor Profit noted that tariffs have been a lingering concern for both the Bitcoin price and the broader stock market, suppressing momentum. However, the analyst asserts that the announcement of a new trade agreement—valued at $750 billion in US energy exports and $600 billion in EU investments—has alleviated some of that pressure. Links Between M2 Money Supply And BTC’s PotentialOn a macroeconomic level, Doctor Profit highlighted the M2 money supply as a crucial factor influencing the Bitcoin price trajectory. Following a 25% expansion of M2 in 2020 due to pandemic-related measures, Bitcoin experienced an 800% rally. Currently, M2 has increased by 2.3% since the beginning of 2025, despite ongoing quantitative tightening measures by the Federal Reserve (Fed). The analyst believes that this indicates that the Fed may be poised to adopt more aggressive monetary policies in the near future.Historical data suggests a correlation between increases in M2 and Bitcoin price movements, with the analyst estimating a potential upside of 30-35% for Bitcoin with every 1% increase in M2. The most significant expansion has occurred in recent months, particularly between May and June 2025, when M2 saw a monthly increase of 0.63%. Given Bitcoin’s typical lag in response to M2 changes—approximately 60 to 90 days—there is speculation that this could lead to a 15-17.5% rally in the coming weeks, positioning Bitcoin toward the $130,000 mark.Looking ahead, the Federal Open Market Committee (FOMC) meeting is slated for Wednesday, with a strong expectation of no interest rate cuts.As of this writing, the market’s leading cryptocurrency trades at $117,569, up nearly 71% on a year-to-date (YTD) basis. Featured image from DALL-E, chart from TradingView.com