Key Insights on Bitcoin and Global Liquidity Index

Bitcoin and Altcoins Correlation with Global Liquidity Index

• Bitcoin and altcoins are mirroring the global liquidity index.
• Prediction: In 9-10 days, Bitcoin and altcoins are expected to move towards the upside.
• Understanding the global liquidity index can provide insights into future market movements.

Understanding the Global Liquidity Index

• The index provides a predictive view of market trends over the coming weeks and months.
• Recent correlations observed since Bitcoin ETFs began, aligning Bitcoin more closely with global markets.
• Institutional money involvement has strengthened the correlation between Bitcoin and global liquidity.

Technical Setup for Tracking

• Add the indicator "M2 Global" to the Bitcoin daily chart.
• Align the indicator with Bitcoin by adjusting settings: daily chart (70) or weekly chart (10).

Timing and Lag in Liquidity Effects

• Liquidity impacts the market approximately 70 days prior to reflecting in the Bitcoin price.
• Post-global liquidity peaking, Bitcoin sees effects 70 days later.

Recent Market Movements

• Bitcoin has shown a correlation with liquidity bounces and dips.
• Anticipated market movements based on the index indicated a red day after a slight drop.
• March 21st predicted as a potential bottom, with rebound expected thereafter.

Influence of Dollar and Global Markets

• The US Federal Reserve and the dollar's movements significantly impact the index.
• Current dollar dynamics, including a weakening dollar, are affecting global liquidity.
• Global liquidity inversely correlates to the dollar index (DXY).

Global Economic Influences

• Euro strengthens due to geopolitical developments, such as Ukraine's ceasefire request.
• German economic stimulus through military investments also aids Euro strength.
• The Japanese Yen and Great British Pound dynamics influence dollar strength/weakness.

Strategy and Market Behavior

• Institutional traders and market makers use liquidity models to preempt market moves.
• Media narratives and sentiment can manipulate retail investor actions.
• Market makers might initiate aggressive crypto market moves in late March.

Investment Perspective

• Despite current bearish sentiment, potential for a bull market exists if the dollar breaks support.
• Retail investors are often out of sync with institutional liquidity strategies.
• Next 10 days viewed as a strategic accumulation period for crypto assets.

Future Content and Recommendations

• Anticipate upcoming content focusing on specific altcoins with significant upside potential.
• Recommendations for exchanges that do not require KYC for trading.
• Encouragement to stay informed and subscribe for updates on market trends.