Sykodelic 🔪@Sykodelic_
This is one of the most important things you need to understand about this cycle.
Everyone is looking for clues in the wrong place.
You cannot just look at Bitcoin pice action and make an overall decision about the cycle.
There are far greater foundational moves at play that dictate what happens.
And one of the clearest ones is the way the $RUT is currently moving.
The $RUT is the index for small cap stocks. Just like how we have OTHERS for alts.
And the $RUT is a key risk on metric as this index really only moves in the most risk on positions in the market as it is the highest risk stock index.
At this moment right now, it is nowhere near a cycle ending position... it is quite literally on the edge of breaking into price discovery.
And we can see where Bitcoin was the last time this was about to happen with the $RUT.
Then take a look at where $RUT was when Bitcoin was in the position everyone thinks we are in now.
In 2022, $RUT was starting its break down after large moves to the upside and distribution. And so was Bitcoin.
Now, it is only just starting its breakout phase.
And as hard as that is for many to believe, so is Bitcoin.
The most confusing thing for everyone this cycle is that Bitcoin has been moving higher not because of liquidity, but because of adoption.
This is why there have been no true sustained moves and no real price discovery. And also why alts have not been able to hold any kind of run either. There has not been the liquidity for it.
But everyone is making out these moves so far as the cycle completing, when the actual business/liquidity cycle is only just getting underway...
Which is why $RUT is about to breakout.
$RUT has followed an almost exact pattern from its previous run up to breaking out between 2020 - 2021.
It is not a coincidence that this is happening as we enter easier liquidity conditions.
And Bitcoin is not all of a sudden going to enter a bear market just because it has dipped.
You have to understand what is happening within the bigger picture here, and not just focus on the Bitcoin chart.
Bitcoin, alts, small cap stocks and anything else that is high on the risk curve only ever truly have their parabolic runs when the liquidity conditions enable them.
And as we can see with $RUT, they are starting to be enabled.
