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Bitcoin Battle for the Bull Market Support Band

Jul 18, 2024

Bitcoin Battle for the Bull Market Support Band

Introduction

  • Presenter's Objective: Discuss Bitcoin's current status in relation to the bull market support band.
  • Promotions: Subscribe to the channel, thumbs up the video, and check out the sale on Into the Cryptoverse Premium.

Recent Market Performance Overview

  • Summary of the Past Few Months: The market unfolded as previously discussed on the channel.
  • Bitcoin's Local Top in March: Anticipated before the having, similar to Eth before the merge.
  • Current Market Sentiment: Many were super bullish, leading to a summer lull.

Critical Aspects Moving Forward

  • Overlaying Moving Averages: Different narratives can support current price action.
  • Strategy and Portfolio Choices: Maintained a Bitcoin-heavy portfolio for three and a half years, moving away from altcoins due to tighter monetary policy from 2022 onwards.
  • Holding the 20-week Moving Average (20WMA): Crucial for favoring a further rally.
    • If Bitcoin reclaims the 20WMA and holds it as support, it's generally positive.
    • Historical context: Similar patterns noted in 2021, 2013, and other having years.

Historical Comparisons and Patterns

  • Post-Having Year Returns: Every post-having year showed a lull in the summer months.
  • Summer Lulls: Observed in 2013, 2017, 2021 with significant pullbacks.
  • Reclaiming Moving Averages: Crucial step, mirrored in previous cycles.
  • 2013 vs. 2019 Comparison:
    • 2013: Pulled back to the 20WMA, setting lower highs, before a Q4 rally.
    • 2019: Similar pattern but followed by rate cuts and lower lows.

Immediate Concerns

  • Weekly Closes and Moving Averages: Bitcoin needs to close above the 21-week EMA for a sustained rally.
  • Crossing and Holding Moving Averages: Key to determining if it follows 2013's rally pattern or 2019's drop pattern.
  • Downsides and Potential Lower Lows: Risks remain if Bitcoin doesn’t reclaim and hold above key moving averages.

Federal Reserve and Monetary Policy Impact

  • Monetary Policy: Tighter policies causing a preference for Bitcoin.
  • Potential Rate Cuts: Could align with Bitcoin's movements, akin to reactions seen in 2019.
  • Correlation with Traditional Markets: Small-cap stocks (e.g., Russell 2000) showing similar trends.

Long-Term Cycles and Theoretical Possibilities

  • Cycle Theory: Four-year cycles observed with peaks usually coming in Q4 post-having years.
    • Q4 Rally: Potential that Bitcoin might rally in Q4 of the year following holding important support levels.
    • Potential Delays: Some moves could be pushed to the next year.
    • Dominance Trends: Bitcoin dominance trends higher in tighter monetary conditions.

Summary and Projections

  • Immediate Battle: The next week or two are pivotal to identify the direction.
  • Risk Management: Be prepared for multiple outcomes; have strategies in place for both bullish and bearish scenarios.
  • Conclusion: Observe closely if Bitcoin holds above 20WMA to predict year-end trends.

Final Remarks

  • Engagement: Encouraged viewers to subscribe, like the video, and check out the premium offer.
  • Market Dynamics: Emphasized the volatility and the need for careful strategy and observation.