Why Bitcoin Is Still Crashing

why bitcoin is still crashing

the fact that there were 40 Bitcoin supposedly from satoshi wallet which later got debunked okay obviously but that did have a little minor impact on it I do want to talk about why that was both bullish and bearish later in the video but obviously people do want answers why is Bitcoindumping why are we possibly below $9,000by the time you're watching this will there are actually a few key reasons that I do want to go over as to why the Bitcoin price is actually dumping currently.

 okay so we're gonna talk about that I also want to talk about some fundamental factors for bitcoin that despite the dump happening literally as I'm making this video are actually still pretty bullish for bitcoin five specific things that I want to go over as well and there also was one sort of minor but maybe you could take it as a major Bitcoin victory recently as far as crypto adoption is concerned so we're gonna go into all that today we're gonna start off with the bearish then we're gonna go into the bullish we're gonna have a little bit of a mix of everything on this ..

butI'm going to show you why ultimately this right here really doesn't scare me and I'll tell you why in just a bit but if that sounds good to you you know what to do if you're not subscribed well what day to join the cryptocurrency definitely consider it and without further ado let's dive into this bloody mess of bitcoin chart today so I don't have to tell you guys what's going on we definitely are having some major rejection up here you can see we tried to break above this key resistance multiple times, okay and this is actually the Bitcoin futures chart and you can see that we put in one two three four five red candles.

so this is clearly showing that Bitcoin isn't really looking to break the $10,000 mark today we are looking for a potential downtrend now the question is Bitcoinjust copying basically what traditional stocks are doing well no because three out of the last five days so far have actually been green for the SNP whereas bitcoin has had five red candles so no I wouldn't say that they're you know following each other but nevertheless, I did talk about this key level right here that if we were to break down below which was around the three nine thousand three hundred twenty-two dollars level then bitcoin was gonna fall back into the red zone and then we did kind of have to talk about these levels so having a look right here we did fall out of this sort of descending wedge now some people were saying oh well, a descending wedge pattern that's bullish right.

so we could have a bounce to the upside but also we could be forming an even bigger descending wedge now keep in mind descending wedges are textbook bullish patterns however unfortunately we were to get to the bottom that would bring us all the way down to about an eight thousand three-hundred and sixty dollars Bitcoin before having a reversal to the upside now is that what you should be expecting wellJosh rager he did say on Twitter that he was looking for about a nine thousand$150 level for the daily close for bitcoin currently at the time of making this.

we are sitting below that so will we end up you know getting back up to those levels by the end of today very early we still have the entire day ahead of us but having a look right now what I really want to point out is that we are sitting right now at the absolute bottom of this trend now I don't know what's gonna happen next but you can see right here this is where we're sitting at the time of making this a video so you would think that there would be a little bit of a bounce off the right if Bitcoin does have a bounce off of this.

 then we'll probably head back up to around the nine thousand nine hundred dollar level and then we can just all put this behind us and call it a nice healthy retracing a continued uptrend however if we do break lower than this then we have to actually have a bit of zoom out right here because we've actually fallen out of this blue Zone which Bitcoin really has never traded in so it was looking short-term bullish but if we do have a pullback you can actually see that bitcoin will probably want to retest down to some of these lower levels it could have a bounce-back off of the9,000.

excuse me actually off of these as well I don't know what chart I was just looking at if we actually, get down to this level you could see Bitcoin get down to about 6800 or I mean if we were to fall straight down today you're actually looking at about let I see right here at about of $5,800 Bitcoin doI think that we're gonna fall that low I don't because I do believe that we will be supported by the 200 weekly moving average which at the time of making this is sitting at about five thousand eight hundred and fifty-five dollars but like I said guys I don't anticipate.

 Bitcoin going that lowis it possible, yes but don't forget that we are still in a descending broadening wedge and these types of patterns whether they're coming out of an uptrend or a downtrend have about an eighty percent chance of breaking to the upside and if we do still play that pattern out even if it does take three or four months if you have enough patience to wait for this trend outnumber one you'll have a better chance to buy Bitcoincheaper so if you just got into Bitcoin and you're looking for an opportunity to buy lower this could be that opportunity fact I literally put out a video a few days ago where I said Bitcoin huge by the opportunity ahead by here and we were talking about one last massive dip before having an opportunity but basically before Bitcoin goes toall-time highs so essentially if we do break out of this, uh you know descending falling wedge broadening wedge you'relooking at a fifteen thousand five hundred dollar Bitcoin target and bitcoin could potentially hit six thousand dollars before going up to that level just think about that guy's pretty crazy lots of opportunities ahead long-term you guys you know I'm bullish on Bitcoin short term well things could get a little bit choppy.

 and just once again having you know zooming out looking at the macro right here I do want to point out that yes there is that potential to fall to the bottom however bitcoin has consistently you know been putting in higher lows yes we've been putting in lower highs but we have been coming to the end of this apex which does look like it wants to break out sometime in mid-2021 so you know that could be we could be bouncing around in here until then but I have long term vision on this thing I'm looking for massive opportunities to accumulate Bitcoinbecause let's be honest guys if Bitcoinjust pumped to $20,000 tomorrow you'll be excited but you'd probably be really pissed off that you didn't have more Bitcoin let's just be honest about that right so you have to take these blessings maybe they could be blessings in disguise right and just having a look right here I do want to point out that bitcoin is doing something very similar that we did back here where we had seven green candles followed by a red-green red.

and then we had a massive pump well that's what we're doing right here seven green candles followed by a red-green a red and if this pattern plays out well I don't have to tell you guys what happens now past performance doesn't mean that we're gonna have the same results right now let's talk about this 40 Bitcoin that was moved yesterday which we've pretty much come to the conclusion, it wasn't from Satoshi so why were people freaking out about this right well some people tend to think well if this is from a really old wallet smart money is usually the oldest money so maybe they know something we don'tand maybe they're selling outright now right well they didn't exactly send into an exchange, in fact, they just moved it from one wallet to another also just want to point out the last time that coins this early in bitcoins history were moved Bitcoin had a 3% sell-off followed by a 20% rally over the next two weeks so will history repeats itself well maybe that is a problem so let'stalk about why we're having the thissell-off good number one main reason is literally..

 it was just too much resistance you hit a level so many times five times to be specific it's just after a while you just have a breakdown same thing happens to the bottom you hit the bottom too many times you get that support you get a rally to the top rights it's basically the reversal but you can see that Bitcoin sentiment over the last 30 days has hit the highest record since we've seen for positive Bitcoinsentiment since 2017 which means that this is the most bullish that people have been on crypto since the 2017 blast-off top right essentially having a look at that basically that means that well maybe people are just a little bit too excited a little bit too bullish we do need to have that cool off on sentiment right number two I just want to point outshout out to a liver coined by the way there are a lot of orders for cells between the ten thousand and ten thousand seven hundred dollar region okay so lots of people don't want bitcoin to go over 10,000 bitcoins only spent five percent of its entire 11-year history .

above ten thousand dollars did you think we were just gonna slice through it like butter no this is a lot of resistance for Bitcoin people are gonna sell whales are gonna short you know what I'm trying to say like they don't want Bitcoin to go over ten thousand that's a follow level that could drive the price up way too high these whales want to accumulate and we've actually seen proof of data that whales have been accumulating over time another possible thing that we need to consider is that bitcoin is failing to break over10,000 because of miners selling you actually have data compiled by monitoring resource crypto quant they show that over the past five days the combined outflow of Bitcoin from mining pools is up to six hundred percent from around a thousand Bitcoin to over seven thousand four hundred Bitcoin so this data also confirms there is a correlation between increased miners selling and Bitcoin price bottoms eventually that's gonna get exhausted too right you have buyer selling buyer fatigue and you.

 also have to sell fatigue well there has been a lot of buying excitement a lot of prices going up you do need to have that correction, in fact, it's healthy because the bigger you have a spike especially without correction the harder you're gonna have a fall I mean if Bitcoin was to just spike 500% and just go straight up in the air that's when you're gonna see those 60% 70% 80% crashes right also looking at this sales in the week before the halving coincided with bitcoins pre having a pump so that data also does show that you do tend to see you know a little bit of a calm after the storm so too calm after the storm as opposed to before the storm in this situation but also I wanted to point out that minor revenues crash but this is all he's been marked by Bitcoin bottoms, in fact, I just showed you guys the other day that the pool multiple which literally accurately has called the bottom every single time has just gone back into the green territory now it has not touched the absolute bottom so this is why we're potentially seeing you knowsome you know some more sell-off look we're back above the 9000 again.

 for now you know could be different by the time you guys see this video but um yeah you know that's just something to mention moving forward and let's talk about this 40 Bitcoin right so willy who says is embarrassed yes is it bullish also yes is it significant no what is he talking about well this is basically the situation right here so having a look at these bitcoin price models you can basically see that since coins moving is ultimately a movement of capital between investors you want to know who's the smarter money most likely the investor with the longest time in the market.

 is the smarter one they'll sell near local macro tops that's a bad thing right that's bearish but also keep in mind that old coins moving increase both realized cap which is the orange line on the model and the C VDD price or the floor model which is the pink on this as well so when old investors sell out of their bitcoins especially Bitcoin that they bought for less then a dollar it allows for the price floor to increase that new buyer capitulate at much higher prices this is long term bullish which is why when you have a look at this logarithmic trend right here yes bitcoin has insane rallies and 90%crashes but it always follows an uptrend and its next low is always a higher low you could just see this is like all the data of bitcoins.

 history right here in a chart, this trend is your friend until the end and this trend is still trending upwards so just wanted to point that out for all you new guys definitely I could understand you could be freaking out but I wanted to play this clip super quick from this interview that actually came out over on Masari and this is Tour Demeester you may be familiar with him and he actually argues that we are in bitcoin the bull market and I want to just let I'm gonna play a clip from this  and he'll explain to you why he believes that I wouldn't be surprised at this bull market which now we're back in upon markets I think you know for sure and three four thousand dollars what the bottom I don't know we'll go below six thousand again I mean I think the price target up like fifty thousand dollars.

is not insane at all especially given just how crazy that the money printing is I would even say like between fifty and a hundred thousands and then the question is more like what is the dollar going to be worth once we're at hundred thousand-dollar Bitcoin so like you know if a bicycle costs instead of two hundred dollars a thousand dollars what you have to kind of discount to that essentially what he's speaking about is you know the inflation of the dollar like it's very difficult for people to even imagine bitcoin going into a hundred thousand two hundred thousand a million dollars right that seems absolutely crazy but a lot of people are just looking at it through today's vision with today's dollar value.

but if we continue to print all of this money constantly you have to think about what that's going to do to the devaluation of the currency we've seen hyperinflation happen in so many different parts of the world already right so these are some factors that could actually be extremely bullish for bitcoin and me want to talk about this really quick and this is from a recent research note from cryptocurrency fund block tower capital they've actually called for Bitcoin potentially hitting fourteen thousand dollars once it does get above that $10,500 the region which well we didn't have a lot of resistance we could have a few more even a few more months before we get above that level it's possible we all have you have to keep our eyes on what's going on short-term but you know they say basically bitcoin has begun to decouple from traditional investment markets I did point that out they say namely equities.

geopolitical tensions could flare between China and once again you might think this is a bad thing but last time we had big tension between the US and China I don thave the chart pulled up right now but check a few there's a few videos ago we spoke about bitcoin had a major major rally during that uncertainty right number three the world is becoming increasingly acclimated to digital currencies meaningcrypto currencies make much more sense they also say that small emerging market economies are starting to flag with collapsing foreign currencies and social unrest making Bitcoin a potential safe haven and finally number 5 there has been an erosion of trust in central banking but let's talk about some good news while all the bad news today so what bitcoin is crashing if you want to sell not financial advice I meanI'm haughtily guys that's what I'm doing but anyway so major e-commerce platform platforms Shopify has actually inked a deal with cryptocurrency payments processor coin payments to bring the option of paying with cryptocurrency to Shopify users so this is pretty cool now Shopify if you aren't familiar with them they are a major global e-commerce company powering more than 1 million businesses in more than 175 countries across.

the world so why is this awesome well the partnership between these two is basically going to allow merchants to get paid in cryptocurrencies the partnership is a result of encouraging results from a successful beta trial that they ran and now with this integration, you will be able to pay merchants basically anywhere in the world on Shopify using, they say that you could do it with 1,800 different cryptocurrencies supported by coin payments I haven't verified that number this is just according to the article but that incredible so now you have 1,800different options to pay merchants and you don't have to pay ridiculously high fees to you know to use a middleman or send dollars across the world even though I'm sure these guys are gonna take a fee but you guys know what I'm saying I mean try sending a wire transfer across the world you're probably gonna pay 10% minimally.

that right so that is that situation but as you can see right here really want to end this video on the sort of like the bigger picture here and that's that major investment banks like JP Morgan and Goldman Sachs have called for an increase in the size of inflation boosting government bond purchases run by the Federal Reserve and major central banks like I said yesterday bitcoin is increasingly being eyed as an investment alternative that is not prone to inflation why are you seeing guys like paul Tudor Jones allocate you know over a hundred million dollars of his total portfolio to Bitcointhink about it guys I mean I think the world is really waking up to what is happening right now basically JPMorgan goes on to say that the level of the expected increase in supply this year about two-point one-trillion is offsetting the one point nine trillion demand for bonds to the tune of about 200 billion.

so the bank is essentially predicting a rise in bond yields and a fall in prices due to the shortage of demand in the bond markets and uptick in yields or borrowing costs may discourage investors from andcorporations from borrowing and investing prolonged during this you know what crisis which I'm not going to say the name of the virus as a result analyst at JP Morgan think that central banks would have to ramp up their bond purchase programs in order to keep yields depressedGoldman Sachs strategist echoed similar sentiments last a week and kind descending on some funny news or whatever however you want to take this on McAfee has admitted to basically copying from pivots for his new project ghost but apparently, he is still looking to sue anyway so yeah they did get they did get a picture of the keyboard that John McAfee has essentially.