BREAKING: U.S. stock market has wiped out $650 billion in market value this week.
Nasdaq -1.40% Dow -1.21% S&P 500 -1%
While Bitcoin is up 7%.
BTC has added $130 billion, and the total crypto market has added $190 billion this week.
This looks like a money rotation from safe assets to risky assets.
Remember the stocks are at all time high, while Bitcoin is still down -23% from its ATH of $126k. So Bitcoin is currently undervalued and has a lot of catching up to do with US equities.
Bitcoin just broke out after 57 days of consolidation and closed daily above the resistance of $94k.
This is now the 4th time BTC has gone through a long consolidation, retested support, and is now attempting a breakout.
In this cycle, those consolidations have taken around 56 to 63 days:
- First consolidation: 63 days - Second consolidation: 56 days - Third consolidation: 49 days
Now again, Bitcoin has experienced a similar consolidation of 56 days. Last 3 times after the consolidation, BTC broke higher.
Looking at the long-term structure, Bitcoin keeps on forming higher lows and higher highs overall. Even during pullbacks, it is holding above the long term trendline. That shows buyers are still defending higher levels.
Now look at the major indicators:
MACD: Selling pressure is clearly reducing. Momentum is slowly shifting from selling to stabilization.
This usually happens before a breakout.
RSI: The weekly RSI is showing hidden bullish divergence.
This means trend is still bullish.
All this points to one thing only: BITCOIN STILL HAS FUEL LEFT.
The market flushed leverage earlier. Weak hands already left. Now price is stabilizing above key support and a big rally might be closer than you think.