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<\/p>\nInertia.<\/p>\n
It’s one of the fundamental principles of classical physics.<\/p>\n
Simply put, it means an object won’t change its motion unless an external force impacts it.<\/p>\n
Today I’ll explain why inertia is a powerful investment strategy…<\/p>\n
When a trend is in motion, it’s like a runaway freight train. It often takes titanic forces to cause a major trend to reverse.<\/p>\n
For example, consider the historic collapse in bond prices. By the end of the year, 10-year Treasury bonds will have been down three years in a row.<\/p>\n
This has never happened before in the entire history of the United States.<\/p>\n
The force behind this collapse was the Fed’s equally historic interest rate hiking policy. Powell’s Federal Reserve raised rates from near 0% to 5.25% in a year and a half.<\/p>\n
This same policy crushed stocks in 2022. It also wasn’t very kind to Bitcoin, which dropped nearly 70% as the Fed started its first rate hikes.<\/p>\n
But now, things are changing. Last Wednesday marked the second time in a row that the Fed hasn’t raised interest rates.<\/p>\n
And while it’s still very early, the market is betting that the Fed’s rate hikes are now over.<\/p>\n
Lower interest rates will give investors an incentive to put their cash to work. And while stocks and bonds will benefit from this, so will Bitcoin.<\/p>\n
Eventually, Bitcoin will go back to its previous all-time closing high of $65,000. But before reaching $65,000, Bitcoin has to break out of its current trend channel first.<\/p>\n
Take a look at the chart of Bitcoin below (blue lines)…<\/p>\n
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Notice how Bitcoin has broken above the 20-, 50-, and 200-period moving averages. These represent the short-, intermediate-, and long-term trends within the market.<\/p>\n
Breaking above those moving averages is a crucial step to establishing a long-lasting uptrend.<\/p>\n
And now that the Fed is giving investors a great reason to deploy any cash they might be sitting on, we could see a fierce rally in Bitcoin.<\/p>\n
The next immediate objective for Bitcoin bulls is to take prices out of that trend channel drawn on the chart. Doing so will result in what I call “escape velocity.”<\/p>\n
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Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n That’s when a market starts trading sharply higher. And it almost always occurs after a trend channel breakout.<\/p>\n I’ll be keeping a very close watch on Bitcoin’s trend channel. If we take it out, look for an update here in Market Minute<\/em> because what happens next will be exciting.<\/p>\n Happy trading,<\/p>\n Imre Gams<\/p>\n <\/p>\n![\"Signature\"](\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/imre-gams-signature.png\")
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