Bitcoin Business Cycle Analysis
Bitcoin’s price movement is closely tied to the business cycle oscillator, a tool that monitors economic expansions (green) and contractions (red).
Key Observations:
- Every major Bitcoin cycle peak (2013, 2017, 2021) coincided precisely with the peak of the red bar phase.
- These peaks indicated overheated macro conditions, including excessive liquidity, maxed-out risk assets, and Bitcoin market euphoria.
- Currently, we are still in the midst of the green expansion phase. Historically, Bitcoin tends to climb during this phase while liquidity remains abundant.
It’s crucial to note that Bitcoin typically doesn’t reach its peak during growth phases.
Also read: Bitcoin Whale Shifts to Ethereum: Key Actions & Profits Revealed