Market Journal: BTC Character Changing

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Discussion

Throughout the April correction in equities I’ve consistently highlighted Bitcoin as a key leading indicator to the downside for stocks. Since last week’s FED meeting, BTC’s character has changed, now consistently moving higher…albeit to lower highs, for now.

If you look back at how BTC traded at the start of the second leg down (for SPX) in the correction last fall, BTC started moving higher in advance of the bearish September FOMC meeting and continued higher into the late October SPX low ahead of the November FED pivot.

With the market set up to enter the next leg down of this correction, as discussed yesterday (below), BTC’s behavior is in the very early stages of pointing to this pullback in SPX perhaps to the 4500-4700 level as a major buying opportunity.