As we discuss in this week’s episode, the crypto market has been all over the place lately. There was a big breakout last week, followed by a big breakdown this week.

Bitcoin (BTC-USD) will have a make-or-break moment here soon. It is forming a descending triangle of sorts. A down trending line is converging on a flat support line, which is going to cause some big movement when the two fully converge.

The question is, will it break out or break down?

This consolidation happening right now is a precursor to a decisive moment happening soon. We predict sometime in the last quarter of the year, possibly October or November.

We are betting on a breakout. Inflation is going to keep cooling off as well as yields, monetary policy, rates and other economic signals. This should lead to a mean reversion.

As usual, continue to be patient. Once there is a breakout confirmation, then we can buy for the new bull market. Until then, stay risk adverse.

Be sure to tune into Luke’s crypto webinar this afternoon as he breaks down the highly correlated factors that could clue us in to the price direction of Bitcoin, and cryptos in general, as we head into 2023.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.