Dear Traders,
An update on my previous chart, as the overall cycle broke down, also note that we may not get a large Christmas Rally as we have in the past, but the chart shows there is potential.
Here is the explanation of the break down on a pattern I have noticed between QUANTITATIVE TIGHTENING and the BITCOIN HALVING (HALVENING) CYCLE.
Quantitative Tightening is basically a way of cutting the money supply to the economy by increasing interest rates, usually to curve inflation. Usually, after 18 months of interest rate rises, inflation eases the market cash flow returns.
As shown in the chart, the BITCOIN cycle from havlening to bull run is approx 18-24months followed by QT 5-6 months later with 6-12months bear market then the cycle repeats.
DAY 0 - HALVENING
then 18-24 months of BULL MARKET
around the 30 months mark QUANTITIVE TIGHTENING FOLLOWED CLOSELY BY BEAR MARKET
48 months (4 years) NEXT HALVENING
CYCLE REPEATS
At the bottom of the Market, there is also usually some type of BLACK SWAN EVENT.
January 2015 GREECE, CHINA CRISIS, OIL hit 11-year lows, the world shaken by Paris terrorist attacks.
December 2018 USA Trade war with China, FAANG under scrutiny
MARCH 2020 CORONAVIRUS
MARCH-MAY 2023? Potential Factors - CHINA Economic Crash, US/China War over Taiwan, Death of UK Queen.
Thanks for Reading and please let me know your thoughts
<3 Lisa