Stocks Soar While Crypto Grinds—Here’s Why the Next Big Move Is Just Days Away

Stocks are coming off their best week of the year while the grind for crypto continues. Last week, we highlighted why we thought the worst was behind us, and today we are once again reiterating that point. The strength in the stock market is very notable as we know strength tends to beget more strength. As for crypto it hasn’t been as strong of a bounce but we do have powerful time signals on our side.

With FOMC meeting minutes and four Fed speakers throughout the week capped off by Powell on Friday we should see some more confidence surrounding rate cuts and what we could expect in the September meeting.

As for price action on the S&P500…

We are seeing clearer signs that the low is in with four green days in a row to close out last week. However, last Friday marked 120 days from the low of the year and 30 days from the top where this correction started. As long time readers know, these are important time by degrees measurements.

The top did in fact come in 90 degrees from the yearly low so that may mean we are working in a 90 day cycle and not the 120 day cycle. None the less, it is important to watch especially given that the market is right at the 1/1 resistance in the orange line and a slightly bearish divergence on the RSI.

To me, the powerful reversal last week signals to us that the low is most likely in but the short term says we may cool off, giving us a higher low to buy.

Now, looking at BTC on the weekly…

Last week I showed you the grinding market BTC likes to enter after its typical August flash crash. So far this time has been no different. The good news is we continue to hold the weekly swing low marked in blue and we are now 30 weeks from the ETF low of January.

Zooming in to the daily,

We can see that BTC has yet to have three green days in a row giving us that signal of time overbalancing. I would not rule out a higher low this week closer to the black line around 55k. However, as I said, I fully expect it to be a higher low. The most important thing ahead will be the monthly close which I expect to happen over $60,611. So, if that is to be the case then we should see a low come in over the next few days followed by an end of month rally back over the 60k level.

I strongly believe this is the time to be buying if you have not been already. We forecasted this move months ago with incredible accuracy and we must stick to that plan. By September we should be back in an established uptrend with even more explosive moves to come in Q4.

I have given subscribers the next date for an inflection point and it will an important one. The end of this month and the beginning of September are fast approaching and the signals the market gives us in that time will be very telling of its next move.