After a few, pretty major news stories came out about bitcoin and cryptocurrency in general, but what exactly caused this drop is the drop over and if it is not over what are some good longer term technical dip by levels to get in on. If we are to see another cryptocurrency market pullback so today in this video im, gon na be breaking down some of the reasons i think we saw this move so that we can further understand and evaluate what to do in this situation, then were gon na. Take a look at cardano, ethereum and bitcoins technical levels to discuss where im gon na be dip buying these cryptocurrencies. If we are to see sort of another flash crash and also, if youre new to my channel, i make content all about day trading, crypto, investing and personal finance. If those things suit, your fancy make sure you hit the subscribe button turn on all bell notifications. That way, you know when i post also, if youre looking for a cryptocurrency community, we have a free discord. You should check that out as well its sort of a space where everyones welcome, to discuss, cryptocurrency and learn and expand their knowledge, so definitely check that out. If youre interested but lets hop right into the reasons we saw, this cryptocurrency sort of temporary meltdowns first thing i want to talk about is the central american nationals. Bitcoin law going into effect, el salvador, was sort of preemptively buying a bunch of bitcoin being that their currency is now moving into a bitcoin structure.

So ahead of this, they bought 200 bitcoin and then, of course, we saw bitcoin react to that and something else that were about to discuss where we saw that and a half level drop all the way back down to as low as 42. Basically, 43 000 bitcoin. Now, of course, big news like this leads a lot of hype and then, when it doesnt fully deliver the way, investors or speculators think we usually see the market react in a negative way, which i think is what we saw here, but also what we have is The sec threatening to sue coinbase over lending products, basically coinbase, is trying to lend out their usdc at four percent for people who want to just stake, um that liquidity for them and the sec basically said. If you go ahead and do that were going to file a lawsuit, they have told us that if we launch the lend they intend to sue so this information coming out in conjunction with the central american nations bitcoin law, going into effect on top of bitcoin being At a critical technical level is the reason i think we saw this sell off now. I want to talk about that critical bitcoin level with you guys real, quick before we move on into anything else. So basically, bitcoin was hitting this five wave structure off of this initial bounce that we got when we had that huge sell off of crypto, and you can see right here if we find these lows and we figure out where that trend line would be hitting off.

Of and reacting, we did get a slight fail early before this trend, but we were going to either way see a lot of resistance sitting right at this 55 000 mark regardless, and it just decided based on the news to fail slightly early, but whats interesting is, If we count this as a five wave structure – and you can see if we take our first wave as the one factor and shoot up our 161.8 projection to the top – we failed right inside this level at the 161.8 and now were coming around. So this gives me confirmation that this is lining up to be basically a perfect elliott wave so because all of those levels were hit were going to be able to figure out a really really good dip by level for bitcoin. But before we get into that, i want to cover one more thing. As far as this coinbase news is concerned, i think that personally, fixed income is going to get destroyed as crypto continues to be adopted so most likely. What the government is trying to do is slow down that process, so they can figure out how to regulate it and also how to do it for themselves so that the us government can start lending out in crypto and figuring that process out without letting coinbase, which Is a private entity get too far in that process without without them also taking a part of it so thats just personally what i think i think this will 100 get through at some point in some way, which will then cause a huge rally in the market Once this news is delivered, because this is going to interest a lot of people, coinbase is listed on the u.

s stock exchange. So a lot of people have faith in coinbases legitimacy, so if they can be lending out money and getting four percent annually thats going to entice a lot of people, they were potentially in fixed income over to coinbase, which is probably why the sec is not super. Happy with it, obviously for other reasons as well. On top of this news, we also have cardano thats now talking about moving forward with the alonso phase, dropping smart contracts on the main network on september 12th. Right now, its september 8th so were getting towards that sort of area where investors are starting to see. Okay, was this a lot of hype without it being fully delivered, and what we have to remember too is cardano is no small project anymore, even though it has a ton of growth potential, its still the third largest cryptocurrency by market cap. So if we see any sort of downward movement on cardano based on the news, thats coming out about cardano its going to strongly affect the overall crypto market, so i think, with all of these things, coming together in conjunction thats, why we saw the meltdown with cryptocurrency Lets go back to bitcoin and figure out some really important levels that we should be looking at as far as dip buy levels on an investment were gon na go through bitcoin well, go through ethereum and then well, go through cardano as well and ill. Give you some technical input so that you can have a better understanding of what im going to be doing if we are to see a continuation and a sell off in the case of bitcoin.

Its super predictable as far as the price action is concerned. So obviously we shot up our one value projection to figure out that top of the fifth wave is coming in right at that 161.8, like we just did so, because we have confirmation on this, and we have confirmation on the wave count. One two three: four to five: we can now figure out where the 161 8 retracement off of this potential abc move is going to be probably a little bit lower of a b and then a c somewhere down here. What we can do is we can have our inverted fibonacci projection tool off of these levels, right here to figure out where that 161 8 level is and thats should be coming in normally right at the high of one in the low of four, in which case In this scenario, its slightly lower, so that would give us a level of basically 36 and a half, and this is a level that, based off of all of the l8 wave theory thats been holding up to this point. We should be able to see and with bitcoin, because it encompasses so many general investors. These types of wave structures often come to fruition, the most because theres the least amount of people accounting for these types of moves, but the most investors using their emotions to get in and out of bitcoin. So this 36 and a half level is going to be a very, very potent level to buy, but then we also, if we zoom out a little bit more and look at the overall picture.

We also have off of this breakout point, which is establishing basically our overall trend. We have the 61.8 retracement coming down right to this level at about 36 and a half on bitcoin as well. So this is going to be a super potent buy level for bitcoin. If we are to see the continuation of a meltdown, then, if were talking about this overall trend right here, we could expect to see as low as 25 000 on bitcoin. If we are to see a pullback down to this overall trend, i dont think that were going to see that personally, i think were going to see a reaction off of here in a continuation. We might not even get there, but these are levels you should be. Looking at to have planned so that you know what to do in the case of this situation and if concepts like these are interesting to you me and my cryptocurrency trading team use all of these concepts to take shorter term cryptocurrency trades to generate regular income. So if you want to check more out about that, i will put a card right here and its also in the description below. If you want to check that out. But i want to take a look at ethereum now and basically look at all of these important levels and why were seeing the price action that we are seeing. So we did get this initial reaction point off of this overall trend coming out of these levels here, but the interesting part about ethereum is we arent in the full wave development of bitcoin, whereas we saw bitcoin hit the fifth wave and now were starting into the Corrective phase with ethereum, we havent even gotten close to anything like that, and it looks to be if we see this low and then this high right here.

So we have support here, breakdown turn to resistance and then turn back to support were now sitting back at the support level right around that 3400 level, and once again, the reason why we most likely saw this reaction level is because of these lows right here. So we figure out the trend line on these lows right here. We can see off of these highs. We basically exhausted to this level and almost hit a double top, but then now were reverting back down. So this is very normal to see price action wise, but i think once again we could see a slightly stronger move on ethereum, where we would have it come down to the 0.5 level on the fibonacci retracement, which would bring us right down to also this overall Trend right here to that 2500 level, which also is sitting just below this trends – 61.8 a little bit shorter term price action wise. If we come down to the overall price action on this trend, it would be a pretty safe bet to get in right around 2000. In my opinion, so these are the two levels that i will be looking for as an ethereum dip buy. If we are to get this, if we hit these two levels, this will confirm a continuation of this uptrend and this will be our low, which means its going to hold true to the l8 wave theory where we could see a massive move way over 6 000 Into the 7 000 range this year, which is going to be very good for d5, but also for long term, investors that are in ethereum and creating more adoption in the crypto in general.

So now i want to take a look finally at cardano, so obviously right around august 10th, we got the news that the smart contracts were going to be deployed on the main net. So we got this massive push up with a ton of investor speculation. If we clone these lines off of this low, we can see it bounced right off of the high right here projected off of this high right at also that psychological level of about three dollars now were cracking back down. If we take our 61.8 value of this overall trend, i know its kind of hard to see because of all this, but were sitting right in this range at about a dollar 85 as our first dip by level on this move down. If we are to see it drop lows down to the overall trend, which is quite possible with either the news not being as good or something bad happening, we could definitely see cardano sitting at that 1.50 range again, bouncing off of that lower trend line. Before seeing that continuation of what will most likely be a continuation of the third wave coming down to the fourth wave, so these are the levels that im going to be looking for cardano as well as far as all these positions are concerned. What ill be doing is adding 50 at the first and then 50 at the second being that i do already have a position a mask, but if youre looking just to get initial exposure and dont have your toes wet, it might be a good idea to get In 75, at the first level and then add 25 at the lower level.

Being that you dont have any exposure and that it is a slight risk waiting for the market to pull back to get in in the first place. Because if you miss it even by a little bit and then it makes new highs by the time, it pulls back down its going to be way higher than what you would have just bought in at a little bit higher price right now. So its always better to have some exposure, like i always say, and then add periodically when you see big pullbacks in the market and thats how you can start accumulating a better aggregate position on all your cryptocurrencies and also guys. I opened up a telegram group where im, basically putting out all of my shorter term cryptocurrency trades with entries, stop losses and profit targets. If you want to check that out, thats also in the description below this video but thats, basically, all i have for today guys. I appreciate you still sticking here with me. If you are still here make sure you hit the like button on this video, if you havent done so already make sure you hit the subscribe button and turn all bell notifications on. I just want to say thank you again to all of you guys that have supported my channel. I hope this video was entertaining and informing to you. Hopefully it will help you make better decisions, but anyways guys.

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