Cycle expert Bob Loukas recently shared a long-term view on Bitcoin that suggests the top cryptocurrency is poised for another bullish trend. However, equity-driven “hurdles” remain in the way.
In this post, we will explain what Loukas means and what can happen if this roadblock is removed.
Bob Loukas: “Cut Out Sound And Widen Lens”
Entrepreneur, investor, and position trader Bob Loukas tweeted new chart this week with zoomed BTCUSD one month view.
“Imagine the fear after seeing this Bitcoin monthly chart,” he said. “Remove noise and lens depth,” he adds.
Loukas describes a cyclical turning point in the cryptocurrency market. BTCUSD has retested and regained its former resistance line, which can now become support, and has closed above its 10-month moving average. Technical tools at the same time also support changes in trend direction.
Bob Loukas is referencing the cyclical timing of a recovery | BTCUSD on TradingView.com
New Bitcoin Bull Trend Lies Beyond Stock Market Roadblock
In the chart above, we have replicated the chart shown by Loukas, replacing the technical tool used with the Fisher Transform. The Fisher Transform normalizes asset prices to make cyclical turning points clearer.
Adding a time cycle tool shows more clearly the cycle time that Bob Loukas was referring to in his tweet. If the cyclical rhythm is accurate, a new bull in crypto may soon bloom. But when exactly? And what stands in the way?
According to Loukas, the decline in equity in March or Early April, he said, was the “roadblock” that held Bitcoin back from exploding higher. Getting past these roadblocks may not be easy, however. The consensus among financiers is that the stock market is due for a serious collapse – the worst since 1929.
Although position traders are pros at detecting cycles on asset price charts, a major collapse in stocks can create a lot of fear in crypto and may plunge them into new positions. Avoid these roadblocks, or smash through them, and a new cycle can open itself.