OPEN-SOURCE SCRIPT
Updated Liquidity-Weighted Business Cycle (Satoshi Global Base)
🌍 BTC-Affinity Global Liquidity Business Cycle (MACD Model)
This indicator models Bitcoin’s macroeconomic business cycle using a BTC-weighted global liquidity index as its foundation. It adapts a MACD-based framework to visualize expansions and contractions in fiat liquidity across major economies with high Bitcoin affinity.
🔍 What It Does:
🧠 Constructs a Global M2 Liquidity Index from the top 10 most BTC-relevant fiat currencies
(USD, EUR, JPY, GBP, INR, CNY, KRW, BRL, CAD, AUD)
— each weighted by its Bitcoin adoption score and FX-converted into USD.
📊 Applies a MACD (Moving Average Convergence Divergence) signal to the index to detect macro liquidity trends.
🟢 Plots a histogram of business cycle momentum (red = expansion, green = contraction).
🔴 Marks potential cycle peaks, useful for macro trading alignment.
⚖️ BTC Affinity-Weighted Countries:
🇺🇸 United States
🇪🇺 Eurozone
🇯🇵 Japan
🇬🇧 United Kingdom
🇮🇳 India
🇨🇳 China
🇰🇷 South Korea
🇧🇷 Brazil
🇨🇦 Canada
🇦🇺 Australia
Weights are user-adjustable to reflect evolving capital controls, regulation, and real-world BTC adoption trends.
✅ Use Cases:
Confirm macro risk-on vs risk-off regimes for BTC and crypto.
Identify ideal entry and exit zones in macro pair trades (e.g., MSTR vs MSTY).
Monitor how global monetary expansion feeds into BTC valuations.
This indicator models Bitcoin’s macroeconomic business cycle using a BTC-weighted global liquidity index as its foundation. It adapts a MACD-based framework to visualize expansions and contractions in fiat liquidity across major economies with high Bitcoin affinity.
🔍 What It Does:
🧠 Constructs a Global M2 Liquidity Index from the top 10 most BTC-relevant fiat currencies
(USD, EUR, JPY, GBP, INR, CNY, KRW, BRL, CAD, AUD)
— each weighted by its Bitcoin adoption score and FX-converted into USD.
📊 Applies a MACD (Moving Average Convergence Divergence) signal to the index to detect macro liquidity trends.
🟢 Plots a histogram of business cycle momentum (red = expansion, green = contraction).
🔴 Marks potential cycle peaks, useful for macro trading alignment.
⚖️ BTC Affinity-Weighted Countries:
🇺🇸 United States
🇪🇺 Eurozone
🇯🇵 Japan
🇬🇧 United Kingdom
🇮🇳 India
🇨🇳 China
🇰🇷 South Korea
🇧🇷 Brazil
🇨🇦 Canada
🇦🇺 Australia
Weights are user-adjustable to reflect evolving capital controls, regulation, and real-world BTC adoption trends.
✅ Use Cases:
Confirm macro risk-on vs risk-off regimes for BTC and crypto.
Identify ideal entry and exit zones in macro pair trades (e.g., MSTR vs MSTY).
Monitor how global monetary expansion feeds into BTC valuations.
Release Notes
BTC-Affinity Global Liquidity Business Cycle (MACD Model)This indicator models Bitcoin’s macroeconomic business cycle using a BTC-weighted global liquidity index as its base. It adapts a MACD (Moving Average Convergence Divergence) framework to highlight expansions and contractions in fiat liquidity across major economies with high Bitcoin adoption.
How It Works
Global Liquidity Index: Builds a composite M2 money supply index from 10 key fiat economies (USD, EUR, JPY, GBP, INR, CNY, KRW, BRL, CAD, AUD). Each is converted into USD using FX rates and weighted by a Bitcoin Affinity Score, which reflects adoption levels and regulatory stance.
MACD Application: Applies the MACD calculation to the liquidity index to detect turning points in global monetary conditions.
Momentum Histogram: Plots cycle momentum as a histogram. Positive values indicate liquidity expansion; negative values show contraction.
Cycle Signals: Marks potential cycle peaks and troughs that can be used for long-term macro trading alignment.
Bitcoin Affinity Weighting
The following countries/regions are included by default:
United States
Eurozone
Japan
United Kingdom
India
China
South Korea
Brazil
Canada
Australia
Weights are user-adjustable, allowing the indicator to reflect evolving regulation, capital flows, and adoption trends.
How to Use
Macro Regime Confirmation: Identify risk-on versus risk-off conditions for Bitcoin and crypto markets.
Cycle Timing: Spot ideal entry/exit zones in macro-sensitive trades (for example, MSTR vs MSTY).
Liquidity Tracking: Monitor how global monetary expansion or contraction influences Bitcoin valuations.
This indicator is designed for traders who want to connect global liquidity conditions with Bitcoin’s business cycle in a structured, data-driven way.
Please consider adjusting the weights based on real-time data.
Release Notes
BTC-Affinity Global Liquidity Business Cycle (MACD Model)This indicator models Bitcoin’s macroeconomic business cycle using a BTC-weighted global liquidity index as its base. It adapts a MACD (Moving Average Convergence Divergence) framework to highlight expansions and contractions in fiat liquidity across major economies with high Bitcoin adoption.
How It Works
Global Liquidity Index: Builds a composite M2 money supply index from 10 key fiat economies (USD, EUR, JPY, GBP, INR, CNY, KRW, BRL, CAD, AUD). Each is converted into USD using FX rates and weighted by a Bitcoin Affinity Score, which reflects adoption levels and regulatory stance.
MACD Application: Applies the MACD calculation to the liquidity index to detect turning points in global monetary conditions.
Momentum Histogram: Plots cycle momentum as a histogram. Positive values indicate liquidity expansion; negative values show contraction.
Cycle Signals: Marks potential cycle peaks and troughs that can be used for long-term macro trading alignment.
Bitcoin Affinity Weighting
The following countries/regions are included by default:
United States
Eurozone
Japan
United Kingdom
India
China
South Korea
Brazil
Canada
Australia
Weights are user-adjustable, allowing the indicator to reflect evolving regulation, capital flows, and adoption trends.
How to Use
Macro Regime Confirmation: Identify risk-on versus risk-off conditions for Bitcoin and crypto markets.
Cycle Timing: Spot ideal entry/exit zones in macro-sensitive trades (for example, MSTR vs MSTY).
Liquidity Tracking: Monitor how global monetary expansion or contraction influences Bitcoin valuations.
This indicator is designed for traders who want to connect global liquidity conditions with Bitcoin’s business cycle in a structured, data-driven way.
Best used on the weekly time period
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.