Bitcoin Rally Hits Equity-Driven “Roadblock,” Here’s What Happens When It’s Broken
Cycle expert Bob Loukas recently shared a long-term look at Bitcoin which suggests that the top cryptocurrency is ready for another bullish trend. However, an equity-driven “roadblock” remains in the way.
In this post, we’ll explain what Loukas means and what could happen once this roadblock is cleared.
Bob Loukas: “Cut Out The Noise And Widen The Lens”
Entrepreneur, investor, and position trader Bob Loukas tweeted a new chart this week with a zoomed out one-month view of BTCUSD.
“Imagine being scared-worried after looking at this Bitcoin monthly chart,” he said. “Cut out the noise and widen the lens,” he added.
Loukas is hinting at a cyclical turning point in the cryptocurrency market. BTCUSD has retested and reclaimed a former resistance line now possibly turned support, and it has 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 Bull Trend Lies Beyond Stock Market Roadblock
In the chart above, we’ve replicated the chart shared by Loukas, replacing the technical tool used with the Fisher Transform. The Fisher Transform normalizes assets prices to make cyclical turning points more clear.
Adding in the time cycles tool shows more clearly the cyclical recurrence Bob Loukas is referring to in his tweet. If the cyclical rhythm is accurate, a new bull run in crypto could be about to blossom. But when exactly? And what is standing in the way?
According to Loukas, an equity-driven decline in March or Early April, he says, is the one “roadblock” holding back Bitcoin from blasting off higher. Getting past that roadblock might not be so easy, however. The consensus across finance is that the stock market is due for a serious collapse – the worst since 1929.
Although the position trader is a pro in spotting cycles in asset price charts, a collapse of that magnitude in stocks could create extreme fear in crypto and possibly a plunge to new lows. Avoid that roadblock, or smash right through it, and a new cycle could reveal itself.