How to Predict Bitcoin Movement 10 Weeks Ahead of Time!
Happy New Years!
I’ve seen a piece of information cross my feed several times now in the last year, and have to admit — the first time I saw this I scrolled right by it and completely ignored it.
It’s easy to ignore the hundreds of Bitcoin analysis posts that fly by my eyes each week on the platforms where I get my crypto news (X, YouTube), primarily because I am inundated with so many by the algorithms.
Then I see a stark graphic chart that wrestles for my attention and wins.
Thanks, Joe Consorti.
It’s refreshing when I find something in the way of hard data.
These appear to be the sources of his information:
The Kobeissi Letter
Experts Predict Bitcoin Could Drop $20,000 Amid Global Money Supply Decline
The correlation between Bitcoin and global liquidity is warning of a possible Bitcoin price correction in the coming…
Data doesn’t speculate.
We do.
Sometimes the data indicator is so stark that it’s hard to call it speculation.
This might just be one of those indicators.
The M2 Money Supply and it’s correlation to bitcoin movement, but more specifically — the way Bitcoin seems to mirror M2 on a 10 week delayed reaction — seems like it is too good to be true, which is why I overlooked it at first.
Thing is, this is not the first time I have seen this bit of info.
We crossed paths back in August when I read this article:
The Correlation Between Bitcoin and M2 Money Supply Growth: A Deep Dive
Explore the correlation between Bitcoin and M2 money supply growth and why these factors are crucial for catching…
If this correlation proves to remain consistent, then this would be the most useful tool in the world for those who want to get ahead of price movements. Conversely, if everyone learns about this and starts acting on it, that too can exaggerate bubbles around the correlation — decoupling the correlation somewhat.
There is no such thing as 100% correlation, so this is M2 / BTC correlation is not an absolute, but the correlation seen between the charts is definitely there.
It seems this could prove super useful for running my bots and knowing when to widen my spread. This combined with the heat-maps might be all I need for my Martingale strategy to shape up and become more reliably consistent.
If the movement in the chart posted by Joe Consorti remains consistent —and if you are reading this — we all get to find out together — then BTC will correct soon, and dip back into the 80k range or lower.
Bookmark this story, share it, and let’s find out if this is true.
To analyze why this correlation might be, in simple terms it has to do with people having the currency to pump into the crypto world in the first place, because when money dries up in the traditional financial markets, Bitcoin follows.
M2 is the US global money supply including specific deposit accounts, CDs, etc.
M1, M2 and M3
M1, M2 and M3 are Measurements of the United States money supply, known as the money aggregates. M1 includes money in…
M2 Definition and Meaning in the Money Supply
M2 is a measurement of the nation's money supply that estimates all of the cash that everyone has in hand or in…
What does the Bitcoin - M2 supply correlation mean, for the U.S. dollar?
Over the past few years, Bitcoin and the U.S dollar have adapted an inverse correlation where the value of the currency…
Why would that impact Bitcoin?
Bitcoin Weekly Outlook: Be Prepared For Another Sharp BTC Price Dip
Bitcoin faces bearish pressures as technical, macroeconomic, and on-chain indicators point to further downside. Key…
Bitcoin's Rally Tracked This Crucial Macro Indicator-And Now It's Pointing To A Correction
Bitcoin's (CRYPTO: BTC) strong correlation with global M2 money supply has raised concerns of a potential price…
How I am responding to this factoid:
I have widened the active spread on my two active martingale bots, I am still avoiding running a Dogebot.
There it is! The Altcoin Inverse Pump Effect
When BTC hits new All Time Highs, it’s hard to know when the wave is going to crest and over the breakers, then fa…
I am only running martingale bots on BTC and ETH, because I have a comfortable idea of what to expect if this chart follows through.
These are my settings:
Just in case price starts dipping hard in the next few weeks while I am making YouTube videos and don’t have time to babysit my bots.
Disclaimer : This is not financial advice and I am not a financial advisor. This is just what I am doing with my own money. I am NOT an expert. I am some dude on the internet who sees a path sometimes, and takes it.
That’s all for today!
Wishing everyone a safe and happy New Years Eve!
Thank you for reading!
Until next time….
Onward and Upward Everybody!
-Chris
A.I. Lifestyle
#crypto #tradingbots #tradingsignals #m2 #liquidity #worldmoneysupply #marketmovers #bitcoin #btc