Where is Crypto going next?

Bitcoin Is Decoupling From Stocks + YouTube Livestreams

If you are reading this, you are winning.

I started doing trading livestreams where I actually trade with real money in front of the audience, obviously using Cycle Indicators.

If you have been reading this newsletter and trading using Cycles, but want to improve your knowledge or ask questions in real time, this is your chance.

If you are here for the first time and don’t even know what Cycle Indicators are, but want to learn more, go and subscribe to the livestreams here:

YouTube Livestreams

The next stream is planned for tomorrow.

You are here because you want to know where Bitcoin is going next and why I’m bullish on BTC for the rest of the month.

So let’s get into it.

Two Levels For Bitcoin

Bitcoin' is doing… Nothing

Bitcoin is behaving exactly like it should.

It is following the development of the 3-Day Cycle, and once the 1-Day Cycle goes below 20, Bitcoin is likely to give us another pump to the upside.

This time, potentially the last one in this range.

What do you mean the last one in this range?

Look, we spent the whole summer in a range roughly between $59k and $66k.

And for the last 40 days, Bitcoin has been trading in an even tighter range, from $62k to $65k.

In other words:

Boring.

But you have to look at the Cycles, not the price.

And they are telling a very different story:

• 3-Day Cycle is going to close below 20 tomorrow, while the price has stayed relatively constant. This is bullish for BTC for the rest of the month.

• 1-Week Cycle is not letting the price fall. However, it is already entering the Sell Zone.

• 2-Week Cycle is slowly resetting. We can expect the bottom of the Bear Market to be reached exactly when the 2-Week Cycle meets the 1-Week Cycle below 20.

In other words, we are bullish for the rest of the month, but pretty bearish for September itself.

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The reality is a bit more sad.

Bitcoin is barely holding the range, while the S&P 500 is sitting at all-time highs.

S&P 500 vs Bitcoin

Opposite Cycle Behavior

Risk assets tend to move together.

Even if one of them joins the party late, the direction of the assets is usually pretty strongly correlated.

But Bitcoin and the S&P 500 have had a very weird relationship over the last 12 months.

Every time the S&P 500 prints a red daily candle, Crypto pukes down 5x harder.

And when the S&P 500 goes up?

Well, Crypto moves at its own speed, following its own Cycles, usually much slower than the Stock Market.

It has become pretty clear that they have decoupled.

But they still respect their Cycles:

• Crypto Market has been falling since May, driven by the 2-Week and 1-Month Cycles.

• Stock Market has been going up since March.

But There Is A Problem