Boredom BUY Signal is Back, AGAIN!
Lift off power is now tightly coiled and primed
It is hard for me to imagine that we would ever see such low volume again after the BTC spot ETF’s were approved . . . but here we go . . . AGAIN!
The 20 day average volume of BTC traded (according to Coinbase chart data), closed below 10,000 at 9,683 on Sunday 24 May 2024. That is a rare event which indicates that many participants have fallen asleep at the wheel, and are very likely about to be shaken awake by new highs suddenly coming out of “no where”.
The power of this signal will not be denied. However, it may well be further delayed since the FED came out last week talking about their newfound need to do more to deflate what they see as excessively high (by most historical measures) prices across all major asset classes.
So they now seem to claim that they are aiming to cause a recession that will bring down asset prices and the inflationary impact that they are believed to have on the demand and prices for goods and services by the holders of such highly appreciated assets (aka the “Wealth Effect”).
That also would seem to mean that they plan to make efforts to beat down the prices of those assets that would specifically include: houses and stocks (and ETF’s which now include the BTC ETF’s and by extension BTC itself).
The FED is too powerful to fight, but even if they actually follow through on this latest talk, it is difficult to imagine that they could continue down such a path for very long without causing a major economic calamity which they most likely would NOT wish to bear (such as the 2008 “Great Recession”).
So this very bearish talk by the FED, and any possible follow-through on it, for whatever limited period of time during which they may be ready, willing and able to so, may in fact present a major headwind against all asset prices including BTC.
However, it would most likely be short lived in duration and would be likely to add more fuel to an even larger increase in asset prices to follow after their eventual pivot away from any such centrally planned suppression.
Due to any such planned impedance by the FED, it may not quite yet be time to buy, however, try to hang on and not to let the FED bluff you into selling before they quickly “fold” their hand on this latest talk and gambit.
All the best,
Garry
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