$QKC A signal from 2018 has appeared on the BTC chart, and it's a very bad sign!
$GAS $BTC Historically, it's rare for BTC to show four consecutive red candles. The last time this happened was in August 2018 (coincidentally, this was Trump's first term).
Strangely, it seems Trump and Bitcoin have a long-standing feud, as the crypto market always plummets during specific periods when Trump is president.
Returning to the main point, the four consecutive red candles on the monthly chart confirm a strong downside signal.
Remember that during this period, the market was still being supported by the Fed under Powell, which was quietly injecting $40 billion each month to improve the balance sheet.
But by April of this year, as tax season approaches, the balance sheet will shrink, and especially, the Fed will welcome its new chairman, Kevin Warsh – known for his hawkish policies that boost the dollar's value and his preference for tight monetary policy to combat inflation.
Wall Streeters are whispering about a scenario where "someone may have foreseen the worst." And Trump's nomination of Kevin Warsh to the Fed chairman position instead of Bessent is because he has experience dealing with the 2008 US financial crisis.
The DJ market is shifting from rock to R&B, and soon, by the end of the year, we'll see the market switch to ballads. The slower the music, the more boring and chaotic the market becomes, marking the return of the crypto winter.
These analyses aren't meant to scare, but rather to encourage caution and preparation for a worse scenario later this year.
You can choose to leave the market or take a break, but remember that a year-long downtrend is the easiest phase of the cycle.
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