Game On for Crypto

• The set up.

• The Happening

• “Risk On” across the board.

• How this is possible.

• Where the thesis becomes wrong.

It’s on.

A couple weeks ago I sent out the following post:

My cousin then responded with “What do you see?” So I put together a thread of everything that I saw with an explanation.

You can find it here: Bitcoin Chart Explanation

Fast forward to a couple of days ago and I updated it with the following post and charts:

It’s now happening.

Below is a current look at the weekly chart as of Friday at 1:30pm PST.

Should bitcoin close outside of the handle on the weekly chart this Sunday night, it will be further confirmation that crypto is indeed beginning it’s next leg higher.

But that’s not even the craziest part. No, that is reserved for what price targets to expect out of a set up like this. More than likely $100k+, and that’s not even the outlier.

It’s not just crypto either…

Markets are clearly moving back into a “Risk On” environment. Should this continue to confirm, then the expected Summer Rally has begun.

Many stocks and cryptos are on the verge of moving significantly higher. This is the point where you look back in the future and say, “I wish I would’ve known this was going to happen at that time.”

Everything is and has continued to tell us that now is “that time.”

How is this possible???

In a word, liquidity. As in the amount of money still in circulation in the economy. How do we know that there is ample liquidity? Simple, asset prices continue to move higher.

Of course there’s much more to it, but this is an easy one to gauge. If there wasn’t ample liquidity available then the markets would not be be at all-time highs once again after a measly 5% correction. And that little 5% correction came right after a monster 20-30% run which began the end of October.

This is how Bull Markets behave and what it looks like when buyers are firmly in control.

Where is this thesis wrong?

As always, if you don’t know where your thesis becomes nullified, then it is nothing but an ignorant guess. That’s not what we do here.

In this situation, it’s actually pretty easy. If Bitcoin and the indices jump out of their current ranges and fail a retest of these levels, then it becomes a hard “Risk Off’ environment.

With that being said, market breadth (how many stocks are advancing vs declining) is clearly showing a “Risk On” environment. If these new breakouts were going to fail, breadth would more than likely already be deteriorating. Instead, it is strong and getting stronger.

The trend is up. Don’t fight the trend because some doofus on TV or next door read one book or one article and now thinks that they have an edge that market participants who live and breath this stuff every day do not.

Don’t be foolish.

This is not financial advice, it is for entertainment and educational purposes only, and I am not your financial planner. Only you know if you should or should not partake and with how much. The truth is, if you decide to partake and put in more than you are comfortable with, then you will probably find a way to lose even as prices move higher. It’s the way the game works.

If you do decide to partake or just want to go through the experience so that you are ready for next time, then I’ll be keeping this move updated.

It’s just beginning, but not too early.

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