Bitcoin just gave a signal that hasn’t been seen since the 2017 bull market, indicating a potential dramatic rally. TechDev, a well-known crypto strategist with a large following on X, reveals that the Bitcoin versus M1 money supply chart has broken through the resistance of the exponential moving average Bollinger Bands on the monthly chart. This is similar to what happened in the early months of 2017, when Bitcoin experienced massive gains of over 2,600% in less than a year.

The M1 money supply tracks the amount of liquidity in the US financial system, including physical money, demand deposits, traveler’s checks, and other checkable deposits. TechDev believes that this signal suggests that traders and investors are underestimating the potential upside of Bitcoin in this market cycle.

TechDev goes on to explain that comparisons and trend projections for 2021 may underestimate Bitcoin’s potential. In 2021, Bitcoin reached new highs against the USD due to increased money supply. However, in 2024, Bitcoin is expected to reach new highs based on its own demand, breaking out against M1. When considering the anticipated M1 growth this time, Bitcoin is likely to outperform expectations, similar to the 2017 bull market.

According to TechDev, if Bitcoin follows the same trajectory as the 2017 bull market, it could soar to over $400,000 in less than a year. While this might sound outrageous, TechDev points out that $70,000 surpassing $420,000 in a year would have also seemed crazy, just like $1,000 surpassing $20,000 did.

As of now, Bitcoin is trading at $67,844.