Liquidity drops at key moments spells problems
I was forwarded a Bitcoin over a Global Liquidity chart on a big time frame. The pink magnifying circles are added by me (the only change) to help people see the trap therein. The liquidity dip in the lower half of the chart, was very minor pre the pink circles, not much more than a rounding error.
Bitcoin over Global Liquidity Weekly chart
The trouble with MACRO GLOBAL LIQUIDITY charts are:
1. The 'little' liquidity drops at key vulnerable moments
These lead to massive downside moves, especially for high beta underlying's (Bitcoin). Again, especially when timed with:
a) Yield curve inversions reverting,
US10Y-US02Y, Daily chart
b) Sahm's rule triggering,
c) Loss of confidence in labour statistics. 818,000 Jobs were revised out of last years employment number,
d) Oil and copper collapses during times of war and production cuts.
WTI Crude Daily chart, inverted HVF in play
2. Control Structures need the Hegelian Dialectic
a. A ‘problem’ is first manifested (created by them).
b. Followed by your subsequent panic/stress based ‘reaction’
c. Then their usual ‘solution’, is presented or even begged for (such as Liquidity QE, more debt, corruption, bailouts, other thefts, martial law and surveillance legislation)
3. The Shakeout
Your OVERLORDS want to ‘shake you out’; they don't want retail to be anything but useful idiot bag holders for the inevitable downside. They need you to be made poor in a transition process where they have to inflate values of a new system, whilst collapsing the old. Independently wealthy individuals cannot be controlled.
In reference to point 1 about liquidity drops at key moments, see charts 1,2 and 3 below. Bitcoin dropped either 73pct from the first Broadening Structure high or 64pct from the final one, on that 'minor' liquidity pullback around the CV19 'problem' world.
Bitcoin Chart 1 The last Broadening Structure local high (USD10,500) saw a -64% crash to sub USD4,000.
Bitcoin Chart 2 Taken from the first Broadening Structure high of the bull market (USD13,970), so far, saw a -73% Crash.
Bitcoin Chart 3 Technically we have a smaller version of 2019’s descending broadening structure after a first up-leg off bear market lows. Is a Demand Destroying Event (DDE) somewhat like the effect of CV19 about to take hold?
BTC/USDT 1W
In order to achieve their 'Shakeout' they have following tactics:
Misdirection: seed confusion, ‘Psyops’, overnight sensation YouTube influencers with a ’patsy’ bagholder ruse to funnel those fooled into a trap, scam or loss.
Leverage provision: they are usury extractors after all. Leverage combined with:
Massive valueation dumps leading to forced sale of positions or,
QE and Liquidity provision for upside pumps.
If you survived the dumps, and stayed in for the post-crash pumps, and you become ‘rich’, await the tax extractor ruses, of Capital Gains taxes, and even ‘Unrealised” Capital Gains taxes.
This is why we have continued to expect a wild card - a hovering phantom of a DDE to intervene mid-halving Bitcoin bull cycle. The market has been moribund and unable to progress, even with a weakening Dollar, pending rate cuts, and gold making new highs
The 10's & 2's Yield Curve reversion says a huge shakeout may be close.
Hardened, older cynics may suggest that “Bitcoin Maxi's” don't always realise they are reliant serfs and bit-part players to a macro cabal's games.
Since BTC ceased to be about freedom and liberty - just max-pumpamentals - Bitcoin Maxi's are left waiting for their macro masters, the ones they were supposed to be escaping from, to pump their bags. That's called settling a long way below the original mark.
In short Bitcoin is reduced to being a minor part, a ‘high beta technology proxy’ as an underlying player - a tool to divert interest from physical gold and an obvious CBDC on-ramp ploy of the legacy liquidity masters that control it, through proxies like BlackRock, other ETF's, Microstrategy, "Satoshi's Wallet" etc.
For my article on Bitcoin as tool of Liberty Critique, click here
In summary, Bitcoin is a potentially very high beta upside trading underlying market. It's one that can't be trusted for liberty and freedom, but may prove useful during high appreciation phases for the building and the accumulation of wealth. It remains unknown what role it will hold.
Will it become a long-standing digital asset of appreciation and not used for transactions? The best possible outcome, that of great appreciation? Or could it be destroyed for CBDCs or tapered and marginalized?
The truth is we don't know. But going all in, as Michael Saylor has postulated, is not even his own position, but a very dangerous one. In our community, the Hunt Volatility Funnel (HVF) Method has kept us in the best macro movers, both to the long and short side. Even if just an investor, and someone not interested in trading, positioning in front of the best major moves and knowing when to take profits and when to recognize that the move has ended in terms of stop loss placement and targets is an incredibly useful skill!
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