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 that suggests the top cryptocurrency is poised for another bullish trend. However, an equity-driven “roadblock” remains in the way.
In this post, we will explain what Loukas means and what can happen when 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 monthly view of BTCUSD.
“Imagine being scared-worried after looking at this monthly Bitcoin chart,” he said. “Cut out the noise and widen the lens,” he added.
Loukas suggests a cyclical turning point in the cryptocurrency market. BTCUSD has tested and regained a previous resistance line that has now possibly become 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 Is Beyond Exchange Roadblock
In the chart above, we have replicated the chart shared by Loukas and replaced the technical tool used with the Fisher Transform. The Fisher Transform normalizes asset prices to make cyclical turning points more apparent.
Adding the time cycle tool more clearly shows the cyclical repetition Bob Loukas refers to in his tweet. If the cyclical rhythm is accurate, a new bull run in crypto may be about to blossom. But when exactly? And what is standing in the way?
According to Loukas, a stock-driven decline in March or early April, he says, is the one “roadblock” preventing Bitcoin from exploding higher. Getting past that roadblock may not be so easy. The consensus across finance is that the stock market is headed for a serious collapse – the worst since 1929.
Although the position trader is a pro at 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 drive right through it, and a new cycle can reveal itself.
