Bitcoin / stock market verus volatility
A follower brought this to my attention on another idea, thought worth sharing.
Volatility. The above 2-day chart compares the volatility index with Bitcoin price action. It is such a fantastic indicator for risk assets.
The orange line is Bitcoin price action, The purple circles circle show spikes volatility with Bitcoin price action. Isn’t it fascinating?
Spikes in volatility are always matched with bottoms in price action. Look left.
Here is another chart showing PUT/CALL ratio versus BTC price action. PUTS are people going short on the market, with money they don't have. (Don’t do leverage people).
You can see every single time without fail when the majority of market participants go short we have a bottom in Bitcoin price action. It never fails.
Volatility. The above 2-day chart compares the volatility index with Bitcoin price action. It is such a fantastic indicator for risk assets.
The orange line is Bitcoin price action, The purple circles circle show spikes volatility with Bitcoin price action. Isn’t it fascinating?
Spikes in volatility are always matched with bottoms in price action. Look left.
Here is another chart showing PUT/CALL ratio versus BTC price action. PUTS are people going short on the market, with money they don't have. (Don’t do leverage people).
You can see every single time without fail when the majority of market participants go short we have a bottom in Bitcoin price action. It never fails.
Comment:
Just to conclude the FED meetings mentioned below, the market is now digesting the news... what did we learn? Absolutely nothing. They talked lots and said nothing. We've been hearing rates are going to rise for years, they tried and then backed off 5 minutes later. We're still in the same boat, talk but not commitment.
The truth is, if rates rise, the near $30 trillion dollar US debt becomes a lot more expensive to manage. The government would need to find an extra $500b at least every year just to manage interest payments. The options are:
1) Raise taxes (not going to happen running up to elections, not a vote winner ;)
2) Default.Yeah, that's not going to happen.
3) Let inflation run hot for some months to come to melt the debt away.
No. 3, despite the harm it will do to consumers is easily the least painful option. We know it, they know it, they talk tough but shoot feathers.
The party continues until near summer time for the moment.
The truth is, if rates rise, the near $30 trillion dollar US debt becomes a lot more expensive to manage. The government would need to find an extra $500b at least every year just to manage interest payments. The options are:
1) Raise taxes (not going to happen running up to elections, not a vote winner ;)
2) Default.Yeah, that's not going to happen.
3) Let inflation run hot for some months to come to melt the debt away.
No. 3, despite the harm it will do to consumers is easily the least painful option. We know it, they know it, they talk tough but shoot feathers.
The party continues until near summer time for the moment.
BTC
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Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
On the volatility daily chart below regular bearish divergence is printing. When green, you really want to be short vol, especially with huge spikes like we’ve just seen.
Notice the overbought Stochastic RSI red shaded areas (purple circles)? They only trigger when a number of overbought conditions are true. Look left.
Switching back to the 2-day chart at the top. Fantastic. This is what the bottom looks like folks. Struggling to buy? That emotion is no different that the one you fight when selling the top.