My observations:
The 10-year Treasury bond is a leading indicator to show where smart money hedges its bets. The 10-year treasury bond is also perfectly correlated to Bitcoin. When this moves up, Bitcoin goes up. When this moves down, Bitcoin goes down. The NASDAQ 100 on the other hand has a lagging inverse correlation to the 10-year Treasury bond. The 10-year Treasury bond is currently taking the shape of an inverse head and shoulders and also is in an uptrend. We also have the Federal Reserve possibly tapering and hiking interest rates in the near term. The likely situation is that interest rates move higher from here.
The prediction:
What I am seeing in this scenario is that the 10-year bond moves up to the multi-year resistance zone which ultimately means that Bitcoin has 1 last leg up before a leveraged blow-off top scenario. This will also coincide with these events while they unravel, the stock market is currently in its A-B-C correction wave. After this point, it is likely that the 10-year Treasury bond will be rejected off the multi-year resistance and nose-dive south. This is when Bitcoin will start its massive correction and the Bitcoin dominance will fall off a cliff resulting in a massive Alt Season. During this time while interest rates go down, the stock market will then move to higher highs and there will be potentially some catalyst to bring it down to one synchronised dance.
My points to support this theory:
* Bitcoin is still in an uptrend.
* The Fed is anticipating interest rates to rise and taper, which is a real possibility.
* The 10-year bond is taking the shape of an inverse head and shoulders and is currently in an uptrend.
In summary:
There is currently a lot of fear in the markets and what I think is happening is that the big players are tax-loss harvesting risk-on assets, hence why the DXY has been gaining superior strength. This ultimately drives the risk on asset prices lower changing the sentiment of the market to bearish. In the New Year of 2022, smart money can re-buy back risk on assets at a cheaper price to give them a headstart to 2022.
The 10-year Treasury bond is a leading indicator to show where smart money hedges its bets. The 10-year treasury bond is also perfectly correlated to Bitcoin. When this moves up, Bitcoin goes up. When this moves down, Bitcoin goes down. The NASDAQ 100 on the other hand has a lagging inverse correlation to the 10-year Treasury bond. The 10-year Treasury bond is currently taking the shape of an inverse head and shoulders and also is in an uptrend. We also have the Federal Reserve possibly tapering and hiking interest rates in the near term. The likely situation is that interest rates move higher from here.
The prediction:
What I am seeing in this scenario is that the 10-year bond moves up to the multi-year resistance zone which ultimately means that Bitcoin has 1 last leg up before a leveraged blow-off top scenario. This will also coincide with these events while they unravel, the stock market is currently in its A-B-C correction wave. After this point, it is likely that the 10-year Treasury bond will be rejected off the multi-year resistance and nose-dive south. This is when Bitcoin will start its massive correction and the Bitcoin dominance will fall off a cliff resulting in a massive Alt Season. During this time while interest rates go down, the stock market will then move to higher highs and there will be potentially some catalyst to bring it down to one synchronised dance.
My points to support this theory:
* Bitcoin is still in an uptrend.
* The Fed is anticipating interest rates to rise and taper, which is a real possibility.
* The 10-year bond is taking the shape of an inverse head and shoulders and is currently in an uptrend.
In summary:
There is currently a lot of fear in the markets and what I think is happening is that the big players are tax-loss harvesting risk-on assets, hence why the DXY has been gaining superior strength. This ultimately drives the risk on asset prices lower changing the sentiment of the market to bearish. In the New Year of 2022, smart money can re-buy back risk on assets at a cheaper price to give them a headstart to 2022.
