If we are understanding this correctly. Bitcoin is in a squeeze right now. On the one hand supply shortage is here driving up the price, on the other hand the DXY is up, which pushes down on hard asset values like Bitcoin. We said last week the DXY (US Dollar) value situation has put a pause on this bull market to a some extent this last two weeks. However, it cannot last, something has to give.
The monthly chart on Bitcoin still looks much like the 2013 bull run. Back then, Bitcoin paused between the double tops. The monthly chart below really shows how this bull run rhymes with 2013:
This next chart gives us technical analysis that the Bitcoin price action is bouncing off the bottom of this ascending channel it is in. Also, aligning with the 2013 bull run. November 11, 2022 was exactly 18months since the halving on May 11, 2020. So this second top could occur anytime in the next 5.5 months. That is the problem, we don’t know how long this bull run will last. This chart below predicts the top between late December 2021, and early 2nd quarter 2022. The longer it takes to go parabolic, the more likely this lengthening cycle becomes. For the last month, we have been thinking November would be the month for Bitcoin to bounce and turn parabolic, but today is the 22nd! See the chart below:
The tweet below is about the effect the DXY increase will have on all markets globally. It is deflationary, increasing the chance for a stock market crash in the 4th quarter, click here to view on twitter.
We have said this before. If there is still a stock market crash in the 4th quarter, it may drag Bitcoin down with it somewhat. But Bitcoin would storm back pretty fast. If such a dip as this does happen we would buy it up ASAP. This next chart shows some valid analysis. A two week chart close above the 1.618 fibanacci level. This is the level to clear and then, parabolic. Which is exactly what happened in 2013:
So now, we wait. Yes, it is boring. We expect this week may be slow like last week. When Bitcoin clears the 1.618 fibonacci level. It will run then. We just don’t know when. So, we wait. Buy dips, and hold Bitcoin. Don’t let the inflation we already have now, wipe out your savings. Even with this deflationary crash threat, Bitcoin is still the best option to hedge all of these issues (inflation, and, or a deflationary crash).
Neutral ATM buys and sells Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. Neutral ATM is here to get everyone off of zero Bitcoin.