$BTC $BTC Now that you understand QT and QE, let's talk about how we can use this in our trading.
To help you visualize it better, I’ve marked the QT and QE periods on the chart.
And as you’ll see, there’s a perfect correlation between Fed policy decisions and the BTC chart.
It almost looks like their policies decide exactly where and even when the tops and bottoms happen!
Let me explain it step by step — because while it might sound complicated, it’s actually very easy to understand:
📉 Example: The QT Period from 2017 to 2019
From October 2017 to September 2019, the Fed was in full QT mode — and we had three major phases in the market.
Phase 1:
When the Fed first announced QT, BTC was around a red monthly resistance line after a huge parabolic run-up.
Right after the announcement, BTC entered a sharp correction — all the way down to the monthly support.
(Shown with a red ellipse on the chart)
Phase 2:
BTC started to prepare for its next move — it accumulated below a bullish structure and slowly positioned itself for the next wave.
📉📈 Phase 3: The Big Corona Dump + QE Restart
Then came the third and most important phase of QT in the BTC chart:
The COVID crash — a sudden, brutal dump across all markets.
Sound familiar? Yeh, same pattern…
Immediately after the crash, the Fed announced QE and started pumping liquidity again → and we saw that huge parabolic run everyone remembers.
🔁 Now Here’s the Plot Twist... We’re Repeating the Same Pattern
Let’s break it down:
A huge crash after QT announcement (phase 1)
Market accumulation below a bullish structure (phase 2)
One final shakeout — just like the COVID dump — which I personally call Black Monday 2025 👀
And now… the Fed has hinted that they're ready to step in to stabilize the markets if needed ( phase three )
Guess what? Another round of QE could be coming...
In this idea, I tried to explain how QE and QT work — and show you the hidden forces behind every bull and bear cycle.
If you enjoyed this, make sure to follow and stay tuned for more.
And as always,
