Bitcoin Rally Hits Equity-Driven “Roadblock,” Here’s What Happens When It’s Broken
Cycle expert Bob Loukas recently shared a long-term view of Bitcoin, which suggests the top cryptocurrency is poised for another uptrend. However, an equity-driven “bump” remains in the way.
In this post, we will explain what Loukas means and what can happen when this obstacle is eliminated.
Bob Loukas: “Cut the noise and widen the lens”
Entrepreneur, investor and position trader Bob Loukas tweeted a new chart this week with a zoomed-in view of a month of BTCUSD.
“Imagine being scared and worried after looking at this Bitcoin monthly chart,” he said. “Cut out the noise and zoom in on the lens,” he added.
Loukas is hinting at a cyclical turning point in the cryptocurrency market. BTCUSD retested and bounced back from a previous resistance line, now possibly turned into support, and closed above the 10-month moving average. Technical tools on the same timeframe also support a change in trend direction.
Bob Loukas is referencing the cyclical timing of a recovery | BTCUSD on TradingView.com
New Bitcoin Uptrend Is Beyond Stock Market Lockdown
In the graph above, we replicate the graph shared by Loukas, replacing the technical tool used by the Fisher Transform. The Fisher Transform normalizes asset prices to make cyclical turning points clearer.
Adding the time cycles tool more clearly shows the cyclic recurrence that Bob Loukas is referring to in his tweet. If the cyclical rhythm is accurate, a new cryptocurrency bullish could be on the verge of blooming. But when exactly? And what’s getting in the way?
According to Loukas, an equity-driven decline in March or early April, he says, is the only “bump” keeping Bitcoin from skyrocketing. Getting past this hurdle may not be so easy, however. The consensus across finance is that the stock market is about to suffer a serious crash – the worst since 1929.
While the position trader is a pro at spotting cycles on asset price charts, a collapse of this magnitude in stocks could create extreme fear in cryptocurrencies and possibly a drop to new lows. Avoid this obstacle or go through it, and a new cycle can unfold.