Bitcoin Giving Strong Bullish Signals, Markets to Roar Higher into Next Year
Today, Bitcoin is on the move, aiming for $11,000, currently trading around $10,915.
Moreover, Bitcoin Difficulty Ribbon Compression is trending up, breaking out of the green buy zone for the first time since the March sell-off.
“Historically, these have been periods characterized by a positive momentum indicating significant BTC price increases,” noted Glassnode.
Not to mention the number of daily active addresses that have been growing strongly this year, with the 180-day average just surpassing its previous ATH.
Meanwhile, in other markets…
While bitcoin started seeing positive moves last week, gold continued down only to make some moves today at 1,871, which is the exact opposite of the US dollar.
The greenback started uptrending right from the beginning of last week, going from 92.75 to today’s 94.74 last seen in late July before it started sliding down. Still, it is holding onto the 94 level.
— Max Keiser (@maxkeiser) September 28, 2020
When it comes to the stock market, it has recorded four straight weeks of declines on the back of a stronger dollar, which is putting pressure on the prices of many assets.
Today, the stock market is also trying to start the week on a green note, opening higher, but it’s to be seen if it will be able to catch up.
Bears in disbelief today. Bounce was chronopgrahed last Thursday. Sometimes biases get on the way. Markets driven by news on the way down, and by news on the way up.
— Alex (@classicmacro) September 28, 2020
Get Ready for the upcoming mania
While Bitcoin (-6.56%), Gold (-4.79%), SPX (-5.77%), USD (-0.62%), and WTI (-7.86%) all are looking to end September on a red note, the next quarter is expected to bring back the greens.
Unlike September and quarter 3, the next quarter has historically been of the green ones. However, for a brief period of time, the US Presidential election will keep the markets uncertain with the major event this week involving the presidential election debate on Tuesday and a vote in the House of Representatives for a second round of pandemic stimulus before the House goes into recess on Friday.
But moving into 2021, things are expected to be even better.
“Impossible to be bearish when we are coming out of the biggest recession in history. The world economy will roar in 2021. Once the uncertainty driven by the US elections is behind us, we are once again off to the races,” said trader and economist Alex Kruger.
According to him, the governments will “overcompensate with ever-increasing fiscal and monetary policy stimulus.”
This means the continuation of a trend that started in April 2020 not only for the stocks but also for crypto, precious metals, the real economy, and others, he said.
The key issue is with the day long term interest rates when they “start rising fast, that's when we have a major problem.”