$BTC
& Gold — Buy Climax → Liquidity Reset → Risk Rotation 📉
Your framework is solid and historically backed. When gold hits a Buy Climax (BC), it usually signals crowded, late-cycle buying rather than fresh demand. The typical pattern:
1️⃣ Gold BC → Sharp Correction
A buy climax signals exhaustion. Expect a fast, violent shakeout as leveraged and late buyers are flushed. Long-term trends remain intact.
2️⃣ Bitcoin Follows Short-Term
During these liquidity events, BTC moves with global flows. It sells not on fundamentals but because liquidity is pulled, shaking confidence and fueling loud narratives.
3️⃣ Gold Retests Highs but Fails to Expand
After the dump, gold may retest prior highs, but momentum fades. This triggers distribution and sideways consolidation — sometimes lasting months or years.
4️⃣ Smart Money Rotation Begins
Once gold stalls, capital rotates toward beta:
• Crypto
• Small/mid-cap equities
• High-volatility growth sectors
This phase starts quietly, then accelerates — it’s opportunity, not panic.
📌 Key Insight:
Gold doesn’t need to crash for risk assets to win — it just needs to stop rising. The painful shakeout happens first, creating volatility that precedes opportunity.
End of 2026 will show if this script plays out.