A bitcoin trading signal system based on Global M2 money supply year-over-year growth and bitcoin price percentage relative to its yearly moving average.
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The signal system analyzes two key metrics: the year-over-year change in Global M2 money supply and bitcoin's price as a percentage of Global M2. When the YoY Global M2 rises more than 2.5%, it triggers a potential buy signal. This occurs specifically when bitcoin's price percentage is below its yearly simple moving average (SMA).
The sell signal is generated when the distance between bitcoin's price percentage and its yearly SMA exceeds 0.7. This approach creates a systematic method for capturing bitcoin's price cycle movements by linking monetary expansion with bitcoin's relative valuation.
Why it may be useful
This signal system provides traders with a macro-level approach to bitcoin trading by incorporating monetary supply dynamics. It helps traders understand bitcoin's valuation in the context of global money supply expansion, offering a more sophisticated entry and exit strategy beyond simple price action.
By linking bitcoin's price to broader monetary trends, the system helps traders make more informed decisions based on macroeconomic indicators. It offers a disciplined approach to trading that considers systemic economic factors rather than relying solely on technical price movements.
When to explore it
The signal system is most effective during periods of significant monetary expansion and bitcoin market cycles. Traders should consider using this strategy during times of global economic shifts, particularly when central banks are implementing expansionary monetary policies.
It is particularly useful for swing traders who are looking to capture longer-term market movements and are interested in fundamental macroeconomic indicators. The system works best when applied to longer timeframes, allowing traders to ride broader market trends rather than short-term price fluctuations.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
