SPY Master
SPY Master 2 minutes reading from Bitcoin

Bear Pennant: Bitcoin Bear Pennant Forming

The daily chart of Bitcoin is forming a Bear Pennant.

BTC ETH GBTC FTX FTT SBF

The measured move down could take the price of Bitcoin to around 10k

The crisis in the cryptocurrency space is the canary in the coal mine. As the Federal Reserve engineers one of the worst dollar scarcities in history, liquidity issues will reverberate from the speculative fringes of the market inward.

So long as commodity prices continue to inflate, central banks are trapped. They will be forced to tighten the money supply, causing major liquidity crises across all speculative assets. In October 2022, Exxon experienced another sharp monthly gain.

The Commodity Index Tracking Fund (DBC) has already fully rolled over on the monthly oscillator, and is bull flagging. It may be poised for another significant rise in the future. This may stymie central banks' ability to pivot back to easing and could worsen liquidity issues.

Even as pandemic supply issues fade, war, deglobalization, and climate change all continue to pose long-term systemic impediments to growth and productivity, and exacerbate supply issues and inflation.

These issues cannot be solved easily and their effects will likely last for decades. We've entered into a new Supercycle where limitless monetary easing is a mistake of the past.

This post is based on this twitter thread.

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