Analyst Predicts Bitcoin Breakout to $130K Amid Bullish Macro Tailwinds

Bitcoin’s recent price action may be volatile, but a growing number of market indicators suggest a bullish breakout is on the horizon. One prominent crypto analyst, known as Doctor Profit, has identified several converging factors that could propel BTC beyond the $130,000 mark in the coming weeks.

In a macro-focused report published on July 27 via X (formerly Twitter), the analyst pointed to a mix of technical, geopolitical, monetary, and institutional dynamics aligning in Bitcoin’s favor.

Technical Breakout Signals Strength

Doctor Profit began by highlighting a key technical milestone that has gone largely unnoticed by the broader market. After four months of failed attempts, Bitcoin recently broke through a long-term diagonal resistance line dating back to its 2021 all-time high. Following this breakout, BTC successfully retested the line as support—a move that often signals the beginning of a major upward trend.

The strength of this technical formation is particularly notable given the backdrop of increasing institutional accumulation and macroeconomic shifts, which together could accelerate price momentum.

Trump-EU Trade Pact Calms Geopolitical Tensions

The analyst also pointed to an unexpected geopolitical tailwind: the newly announced trade agreement between the United States and the European Union. President Donald Trump’s deal has eased investor concerns about a looming tariff war, creating a more favorable environment for risk assets, including cryptocurrencies.

Describing the agreement as one of the most bullish trade developments since 2016, Doctor Profit suggested that the improved transatlantic economic relations could buoy investor sentiment and drive inflows into Bitcoin, especially as traditional markets look set to open higher.

Whale Jitters Offset by ETF Demand

Earlier this week, a brief price dip to $114,500 sparked fears of a potential sell-off, reportedly triggered by wallet activity from Galaxy Digital. However, Doctor Profit downplayed the significance of the move, noting that fears quickly faded as spot Bitcoin ETF inflows continued to outpace daily issuance.

Institutional investors, including asset management giant BlackRock, have been consistently absorbing BTC supply, contributing to a broader accumulation trend. While some long-term whale wallets remain inactive, the analyst interprets this as a sign of confidence rather than retreat, reinforcing the market’s bullish foundation.

M2 Money Supply Expansion Fuels Momentum

A key macro driver cited in the report is the expansion of the M2 money supply. Contrary to ongoing narratives around monetary tightening, the U.S. money supply has grown by 2.3% so far in 2025, including a sharp 0.63% spike between May and June—the highest monthly increase this year.

Historically, Bitcoin has closely tracked M2 growth with a lag of 60 to 90 days. During the 2020 liquidity boom, a similar monetary surge coincided with an 800% Bitcoin rally. Doctor Profit believes the current trajectory could translate into a 15–17.5% price increase in the near term, potentially pushing BTC above $130,000.

Fed Policy Signals Implicit Easing

As the Federal Open Market Committee prepares to deliver its latest policy decision on Wednesday, expectations remain that interest rates will be held steady. Official guidance continues to sound hawkish, with the CME FedWatch tool pricing in only a 5% chance of a rate cut.

However, Doctor Profit suggests that the Federal Reserve’s actions tell a different story. Behind the scenes, liquidity has been quietly expanding, indicating a divergence between public rhetoric and actual monetary policy. If this trend continues, Bitcoin could be one of the earliest beneficiaries of an eventual shift toward easing.

A Bullish Convergence

Taken together, these developments present a compelling case for a bullish continuation in Bitcoin’s price action. From a significant technical breakout to a supportive macro backdrop—including a major trade deal, rising money supply, strong ETF demand, and subtle central bank easing—Doctor Profit argues that all signs point toward a breakout above $130,000.

As BTC currently trades just below $119,000, the coming weeks may prove pivotal in determining whether these bullish forces can coalesce into the next major leg of the ongoing crypto rally.