While retail investors are hyper-focused on Western markets, the most significant macroeconomic breakout of the decade is quietly unfolding in the East. We are looking at the Weekly (1W) chart of the Shanghai Stock Exchange (SSE) Composite Index.
20-Year Generational Squeeze:
Notice the massive symmetrical triangle dominating the chart.
The upper resistance line connects the historic 2007 ATH and the 2015 mega-bubble peak (red arrows).
The lower support line has been respected for nearly two decades, forming higher lows (black arrows).
20-year compression in any major global index is a ticking time bomb of volatility.
The Breakout & Historic Volume:
Look at the recent price action: The index perfectly tested the macro support trendline and aggressively reversed upwards.
Pay close attention to the volume bars at the bottom. The recent upward move and the ongoing breakout of the 20-year resistance line are backed by historically massive volume. This is not a retail pump; this is institutional and state-level liquidity entering the market.
Macro Implications for Crypto & Risk Assets:
When China pumps liquidity into its markets to this extent, it creates a tidal wave of global "Risk-On" sentiment. Historically, when the PBOC (People's Bank of China) eases and Chinese markets rally, excess liquidity inevitably bleeds into the Crypto market.
A 20-year trendline is being broken with record volume. The macro liquidity switch has been flipped. Position accordingly.
20-Year Generational Squeeze:
Notice the massive symmetrical triangle dominating the chart.
The upper resistance line connects the historic 2007 ATH and the 2015 mega-bubble peak (red arrows).
The lower support line has been respected for nearly two decades, forming higher lows (black arrows).
20-year compression in any major global index is a ticking time bomb of volatility.
The Breakout & Historic Volume:
Look at the recent price action: The index perfectly tested the macro support trendline and aggressively reversed upwards.
Pay close attention to the volume bars at the bottom. The recent upward move and the ongoing breakout of the 20-year resistance line are backed by historically massive volume. This is not a retail pump; this is institutional and state-level liquidity entering the market.
Macro Implications for Crypto & Risk Assets:
When China pumps liquidity into its markets to this extent, it creates a tidal wave of global "Risk-On" sentiment. Historically, when the PBOC (People's Bank of China) eases and Chinese markets rally, excess liquidity inevitably bleeds into the Crypto market.
A 20-year trendline is being broken with record volume. The macro liquidity switch has been flipped. Position accordingly.
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Follow me on X
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x.com/Cryptollica/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.