Bitcoin (BTC): Macro Nirvana

March 8, 2019 / by Bill Noble

Bitcoin (BTC) is holding tough, and that is great news.

In Q4 of last year, stocks broke down, and Bitcoin (BTC) fell with them.

This year, S&P futures (ES1) are falling apart (Figure 1), yet Bitcoin (BTC) is holding tough. We see this as a very bullish development for Bitcoin (BTC).

 class= Figure 1

Also, the Dollar Index (DXY) appears to be topping.

Yesterday’s dollar rally was the result of a surprise ECB move that weakened the Euro vs. the dollar. While the move by the ECB was a surprise, problems in Europe and Euro weakness vs. the dollar is old news and is likely fully priced in at this point. In English, that means the dollar can go down, particularly since this morning’s payroll report was awful. That is another positive for Bitcoin (BTC).

DXY is approaching resistance from highs back in June of 2017 and November of 2018 (Figure 2).

 class= Figure 2

Bottom Line: We keep hearing that a Bitcoin (BTC) rally isn’t going to happen anytime soon. We disagree. The fact that Bitcoin (BTC) is holding means a big dollar top is imminent and big Bitcoin (BTC) rally to 6k is likely.

The Crypto.IQ Trading Room has just put together a list of alt’s that could really start moving up.

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