Market Update - Time for crypto to 🚀 ?

Hey everyone,

With the market being at a critical spot, I thought it would be a good time to discuss its current state and share my perspectives. At a high level:

• We are likely later in the cycle than many realize. We could be within approximately six months of the peak, although it is possible, though unlikely, that we have already passed the top

• There are reasons for optimism ahead but investors should be cautious

We’re likely later in the crypto cycle than many investors realize. One chart that shows this is this chart of Bitcoin (in orange), the Financial Conditions Index (NFCI) (in blue), and the RSI of the Financial Conditions Index (in purple and yellow at the bottom). When the RSI is really low, like it is now, we’ve historically been within very roughly 6 months of a top.

This tells me crypto investors should be cautious from here - but that does not necessarily mean the cycle is over. Just that we’re within range of the end (forwards or backwards in time from here).

Despite that, here are a few reasons for potential optimism. These are a few metrics I’m tracking that are starting to look positive:

1. Dollar (DXY) falling in value. We have seen this in every crypto bull market so far. The dollar tends to fall while crypto is in the big bull phase. Over the last two weeks the dollar has finally started to fall. Let’s see if this continues because this is positive for crypto.

2. Tether dominance (USDT.D) is starting to fall. When Tether dominance falls and hits the green line (see chart below) it historically has marked a top. At this point, Tether dominance is above the green line and beginning to trend downward toward it, which is exactly what we need. As long as Tether dominance continues to fall like this, we’re likely in a bull run.

3. Bitcoin price action. Ultimately, it all comes down to Bitcoin’s price movement. If it looks strong, it will likely continue up. If it looks weak, it could be a dip in an uptrend, or the start of a downtrend. The good news in the short term is that the price appears to be gaining momentum.

From now on, I will continue to closely monitor these metrics and a few others. If the metrics start to look shaky, it might be time to consider reducing risk, as the risks might be increasing. Personally, I’ll be taking this day by day and evaluating as we go.

On a positive note, these charts suggest a good chance that we're about to enter another upward phase. However, we should remain cautious. It's time to keep dancing like other investors are, but also keep one eye on the door, as we don't know exactly when it will be time to exit before the cycle ends.

Or we could take the easy route and just buy quality crypto assets and hold onto them for the long term :)

Cheers,

Justin

P.S. I could always be wrong, please do your own research. This is not financial advice.

P.P.S. Reminder that there is never any shame in taking profits early. They aren’t yours until you cash out.

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Disclaimer: The Blockchain Breakthrough is not financial advice. Please do your own research.