Crypto Markets: A Big Divergence That Comes With Huge Implications For Investors

btc price forecast

InvestingHaven is on record forecasting the slowest bullish reversal in history of crypto. Yes, we believe that crypto will eventually resolve higher. No, it won’t happen as fast as investors want. It certainly won’t happen as fast as previous instances in history. In fact, this ongoing consolidation in BTC is going to take a long time until it works out. In the meantime, there are many alternatives that have much more upside potential than Bitcoin. 

The US dollar is labeled the ‘king dollar’ for a reason. That’s because it has the power to dominate the direction of all markets globally as soon as it starts trending (up or down). Similarly, if there is one term we would like to use to label BTC (going forward), it would be ‘slow Bitcoin.’

We noticed this in our article, Bitcoin’s Most Trendless Period In History, which we published in the public domain early August. All volatility got sucked out of Bitcoin’s chart, and to a degree never seen before.

This really means something. The message of the market and chart, according to us, is that BTC is going to go through a long consolidation, one that is going to remain boring for a long time.

The daily Bitcoin chart says it all (from time to time, it is justified to look at the most basic charts without annotations like the one below to get a clear picture of the dominant structure and avoid bias).

bitcoin forecast

One thing to note: this week, BTC retested its June lows (closing prices). For now, it is successful. Needless to say, BTC must respect its June lows on a three- to five-day closing basis, otherwise it will start a longer-term downtrend.

From an intermarket perspective, the US dollar is the big driver of the BTC price. BTC went down in 2022 in 3 stages. The US dollar went up in 2022 in 5 stages. Note that the US dollar made a marginally higher high while BTC was able to respect its recent lows. This is a divergence, an important one, that we must pay attention to.

usd forecast

In the meantime, we see much better setups in the crypto space, one of them outlined below. This is Ethereum in US dollars, and the picture becomes even more clear when looking at ETH priced in BTC.

ethereum forecast

We reported in our crypto investing research service, on Aug. 27, that a structural change is ongoing in crypto markets. There are some specific type of tokens that are outperforming. Long-term chart structures suggest that this outperformance is here to stay. In other words, our findings have strategic portfolio implications.

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