According to a crypto strategist, Bitcoin (BTC), may be stuck in a bearish environment until the Federal Reserve becomes more hawkish.
Kevin Svenson presents a new strategy session tells his 70,000 YouTube subscribers that there appears to be a strong correlation between the S&P 500 stock market (SPX) and how Bitcoin’s price performs.
“Whenever there’s stock market volatility, Bitcoin’s in a strict downtrend. Even when the stock market is unstable and it’s seeing higher highs, lower-lows Bitcoin does not find support on those bounces. It’s just in a strict downtrend. Bitcoin is volatile and people are reluctant to bet bullishly on it.
Even when the stock market is going up, Bitcoin just can’t catch that support. We are here again guys, with increasing bear speculation and volatility in the stock market. And we’re just not finding support. Even on the bounces, when the S&P 500 is bouncing, Bitcoin is just not finding support.”
Since the US Federal Reserve’s hawkish stance has led to a bearish or volatile stock market, Svenson says it will take a fed pivot to turn Bitcoin bullish again.
“There’s going to have to be a pretty big catalyst to get this market to shift. The market is still waiting for a true Fed pivot. It may be next year that we actually change the trend and get bullish again.
We might just drift sideways, guys. Bitcoin might not be much for the next few months. I’m not saying I’m super bearish. I’m not saying I’m super bullish. I’m literally telling you, probably nothing is going to happen for several months here. Bitcoin can still drop a little. I guess that’s possible. But I really just expect Bitcoin to kind of play out some kind of long-term bottom formation and sort of recover next year.”
Svenson plans to tap April next year for the beginning of the next bullish bullish cycle. He will be looking back at the traditional time frames between bullish and bearish cycles. According to him, one cycle reached its top on December 17, 2017, and took 68 weeks for a bull turn. It would take 75 weeks to complete the next bull pivot, he estimates.
“And why do I say April? In the last two updates, we talked about this. We showed the classic Bitcoin cycles. The bull market is only possible when you move above the downward-sloping red resistance. That’s when the bullish pivot begins. But we’re still far away. In theory, it’s April.
It’s April, guys. We still have months to go before we see any price action. That’s what I think is ahead of us until we get into early mid-next year. And then things can start getting bullish again.”
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Take a look at the Price Action
Follow us on Twitter, Facebook And Telegram
Surf The Daily Hodl Mix
 
Disclaimer: The Daily Hodl opinions are not intended to be used as investment advice. Before making high-risk investments, such as in Bitcoin, cryptocurrency, or other digital assets that could be potentially dangerous, investors should do their research. Your transactions and losses are your responsibility. The Daily Hodl is not an investment advisor and does not recommend buying or selling any digital assets or cryptocurrencies. The Daily Hodl does not participate in affiliate marketing.
Featured Image: Shutterstock/GreenBelka/Sensvector