Right now, we’re in the midst of a powerful transition. The May 19 sell-off is showing more and more evidence of being a 320-day, long-term cycle low. Once that’s confirmed, it would mean the end of the “bullish” 320-day cycle ... and the beginning of a new “parabolic” cycle, where investors can potentially realize gains not seen since 2017.
Cycles expert and editor of Weiss Cryptocurrency Portfolio Juan Villaverde says you should think of the cycles as waves. “You start from a low, you peak in a high and then come back to a low. Then, you start another cycle. And when a cycle ends, another one begins. So, there's a rhythm there.”
Market cycles are not exclusive to crypto. Traditional analysts have been using different cycles to track and understand the markets for years. But crypto cycles are unique in their frequency. In our latest Weiss Crypto Sunday Special, Juan explains:
I have not seen an 80-day cycle in the stock market. I have seen a 70-day trading cycle in the stock market. That breaks down into two 35-trading-day cycles in the stock market. So, you think, “Well, it's the same frequency, and it's the same relationship. There should be exactly the same cycle durations everywhere," but there aren’t. The number of cycles needed to create a bigger cycle is not fixed.
With crypto, the key number is four. Each cycle relates to one another by a factor of four. So, you divide it by four, you got a smaller cycle, multiply it by four, you got a bigger cycle.
This consistency in how the cycles relate to one another gives Juan and our crypto team clearer insight into what to expect from this volatile market.
In this interview, Juan dives into ...
• The accuracy of cycles data in such a young market;
• The impact of regulation on stock market cycles ... and lack of regulation on crypto cycles;
• The parameters of our Weiss Crypto Timing Model;
And more!
We’re sitting on the doorstep of the next parabolic cycle. If you have any interest in crypto — or massive potential gains — I highly recommend you watch Juan’s interview now.
Best,
Beth Canova,
Managing Editor
