If you find this video useful and informative hit the like button, i really do appreciate that if you are new to the channel, do subscribe tap the bell, select all notifications, and in doing so you will be kept up to date with absolutely everything that we do Here, right with all that done said and out of the way lets dive into this technical analysis on a v chain, as i said, were going to start with the weekly chart, guys really highlight that we are in good structure. There are five impulse waves starting from march of 2020, with one two three four and five okay, so wave one peaked up here around august time again. This was setting new all time highs for v chain. At the time we went pulled down into the second wave correction um, this actually kind of bottomed out around november of 2020.. This was actually more of a sideways trade. As you can see, we then went up to a nice strong new year start with way three peaking out around the april time. Okay, so around 12th of april week, commencement 12 was a peak of v chain during this third wave to the upside. We were setting all time highs all the way up there, and then we got into this sharp correction wave four. This took us down to some interesting low areas and ultimately were kind of moving our way out of here. By the end of july, then, we started to see a nice recovery to the upside, but then most recently, a little bit of turbulence where weve seen about a 36 pullback and a little bit of recovery since then, but still the market hasnt fully recovered.

Here you can see that the stochastic drink at the start of the ball run was oversold pushing up into the overbought area for wave one down to the oversold area for wave two and up into this over ball area for way three, a little bit of volatility Here indicated on the weekly chart due to the level of kind of manipulation that was going on with bitcoin at the time. Nothing moves up in straight lines either, and in fact there were a couple of interesting corrections that we actually had to have on our journey. To the upside, it made this 36 percent actually look quite small with a 48 here, 30 odd percent there – another 30 here and 20 here. Ultimately, we did actually continue the push to the upside. Despite of all of these corrections that we had seen on the journey, so this 36 percent doesnt bother me too much as it still is in line with the structure and its something that we have seen in the pretty much the standard kind of day here and The world of crypto, so overall, everything is moving up nicely to the upside, where we can see. Another 766 percent in gains from our current position v chain is targeting one dollar one cent, and that is based on the performance that we have seen so far. I.E, the top of way three and the bottom of wave four, these two, coupled together with a fibonacci retracement tool, is indicating that one dollar one cent, okay, so um.

This is something that we do think is likely to happen and something we just have to have patience on, as we start to see this kind of level of push to the upside in the near future. But obviously we are more concerned about what is going on. Most recently so lets jump down into our daily. The daily chart here guys shows us what is going on on the smaller time frame and allows us to see how each days candle is performing. Obviously, we can see that 36 percent drop and we of course have had a good push back to the upside. If i actually grab my uh price range so far, we can actually say that from you know the low that we did actually go down to and uh where we are right now is actually an 18 bump. Okay. So, although not brilliant, we have, we have pulled back 36. We have recovered 18 since overall theres, not uh too much. I would be concerned with. There is, of course, the accumulation zone that we were buying into and some fear was up for sale there. We can, of course, talk about the fact that we are oversold on our daily stochastic, in the same way that we were oversold just up here and again were oversold at this point. So what were looking for is a good push to the upside to become overbought. During this push to the upside here now, obviously this sideways correction was perfect.

This is exactly what we needed to see to take us right, the way back down to this oversold area, and we were tracking nicely to the upside before bitcoin decided to pull us down. So bitcoin is the main issue that we have here for vechain. Ultimately, vechain is following bitcoins price action, as is most of the old coin market, and as a result of this, if bitcoin does decide to have a pull back, then unfortunately, v chain is going to do the same thing right now, being oversold. The way that it is is fine, but we can. We can track down here for a very long time as we have seen previously. Okay. So what we want to avoid is bitcoin pulling back and im going to get into what i can see happening with bitcoin in a moment to help us understand how v chain is going to perform. Ultimately, uh theres a bit of a choice to happen. Whether bitcoin is going to go up or bitcoin is going to go down and v chain is going to follow suit right now, uh, we obviously are in a key moment for v chain. So what im going to do is im going to jump on over into the avid i o dashboard and talk about that underlined data for v chain. This will hopefully help us understand what could happen next so for those who do not know v change and evidence. Io uses artificial intelligence and machine learning to help us understand the underlying value of cryptocurrency.

There is a link in the description below so do check that out. If its of interest to you, it gives you a lot more insight than you get from the standard charts. Here we have a b2 rated cryptocurrency for v chain, which is pretty good, its not the best, but its kind of mediocre its in the middle. Nothing really too concerning and when we actually take a look at some of the things that are going on with v chain. We obviously have the profitability being an a1 rated cryptocurrency, which is pretty obvious, considering its had some very, very good gains. Over the last year and a half uh, we can see the sharp ratios and a2 rating, although it is getting close to our 50 day average. It is still actually saying that its pretty good kind of investment right the risk reward ratio is kind of in our favor, which is good to see. We have the moving averages now. This is where things start to differ a little bit here. We can see that theyve actually a c2 rating, so this is actually pretty bad, so our moving averages are being affected right now by what has happened with bitcoin, we can take a look at the ami had ratio in a2 rating, so liquidity isnt a problem either. Plenty of liquidity and nothing to report there, but then we get into the worst part, which is the fear in greed index indicating a d.

There is extreme fear for v chain right now, um and again, i think this comes into uh. The fact that the sentiment in the space is just not quite there theres lots of things going on with bitcoin. That is basically telling people that bitcoin is potentially going to pull back to 38k uh, maybe even potentially lower and before pushing on up again. Now. If that does happen, then, obviously then thats going to create a whole lot of fear for the space, its going to mean that a lot of these old coins are going to plummet down quite a bit um and obviously could have an impact, an impact on peoples Portfolios, but this would be short term. Even people who are calling 38k bitcoin are calling it as a short term. Ultimately, im not convinced we are going down to 38k. I think the stock to flow model has had its low point for the month of september and i think actually were going to be pushing up in the kind of short to medium and long term here for bitcoin, so overall theres fear in the space and obviously The moving averages have been affected by bitcoins recent behavior overall, even when you take a look at bitcoin. This is also in an extremely fearful situation right, so people are very fearful over bitcoin right now, but the sharp ratio is still saying that actually, the risk reward ratio is in your favor right and uh.

You can take a look at the moving averages: a2. Profitability. A1 ami had a2 peak end value demand b2, so the um, the fear and greed index for bitcoin is completely out of kilter and when we actually take a look at glass node here, we can take a look at the percent balance on exchanges and where things Have been previously right, so obviously we can take a look at where things work the beginning of the year, like in january february. We can see that basically, whilst bitcoin was having a run, the uh, the percentage of balance on exchanges, was actually decreasing right. We had a good decrease over the time and then obviously we get into april. Where things started to peak up. We started to see the balances on the exchanges, move up right into may and we basically had good balances up or lets say good balances. We had balances of quite large amounts on the exchanges all the way through to july. Then we started to see it drop down and right now the balances on exchanges are incredibly low, the lowest they have been this year, okay, so for all of 2021. This is the lowest amount of bitcoin thats been on exchanges and so whats really interesting about. This is obviously it kind of counters that argument of around that fear right, theres, a fear that bitcoin is going to be dropping down, and what we want to do now is actually just take a look at um.

You know the inflows and the total of inflows and we actually take a look at where things were previously right. This is where things were when we started to see the the bitcoin original drop down from those highs of 65k and where the inflows are right. Now theyre significantly lower than they were previously. So, although we are, you know, those are people talking about bitcoin, dropping down to 33, uh, 38k, sorry and um. You know i think, okay cool, but that if that was to happen, we need to see bitcoin inflows on exchanges. We need to see the balances on exchanges actually increase, rather than decrease um. So you know, i think, theres going to be potentially then a load of people who are going to be looking at short positions: shorting bitcoin, taking thinking its going down to 38k, actually for only things to to move to the other direction. This is something that weve seen before when bitcoin went down to 30k, just under 30k. In fact, loads of people decided to short it thinking it was going to 20k. In fact, what happened was it surged back to the upside, and i think this is all down to that manipulation in the in the space around bitcoin and institutions deciding on which one to go after theyre, rather going to go after the long positions or the short Positions based on which ones going to net them the most amount of money, and so ultimately, i think using leverage is an incredibly risky situation to be in anyway, and but right now, when we talk about going down to 30k, i.

e dropping 10k worth of bitcoin price. Uh im not seeing the amount of inflows required to do this, not yet um and again, unless theyre going to do this very very quickly and because obviously glass notes is day behind right. So i can only see a day behind the data here so and for me, im not seeing that happening anytime soon, but obviously we have to monitor the situation see this continue to rise up and see whether or not this artificial intelligence is actually you know. Picking up on peoples fear correctly, but everything else is actually being you know picked up as in a pretty good position so for v chain here to see that this is actually an extremely fearful situation. Everything else is uh is looking okay, the inflows and, of course, the balances on exchanges, arent quite where they are, and we think about. Potentially this decision to go up or to go down um. This is where we need a little a little bit more help right. We need to understand now. What do i think is going to happen? I think were more than likely going to have a short term pull back in line with that fear and then, i think, were going to surge to the upside on a more medium term. So here we have the hourly okay, and on this hourly we have a downward trend and an upward trend. This is something that we talk about uh last time around and we were up against this area on the 15th and then we broke to the upside here.

Okay, so were talking about this move and the requirement of this move. Basically, when were doing the video last time were talking about being down here. Looking for this break to the upside, we got to the overbought area and we started this pool back. Okay were down to the oversold and we havent utilized this stochastic space very well. Okay and the reason for this is that fear in the space right theres, not enough people wanting to buy the v chain and the vet token right now, considering everything thats going on with bitcoin and the things that theyre hearing uh across crypto, twitter, etc, and so Right now, theres a reasonable amount of fear. So for my understanding of this, if that fear is to continue, we are more than likely actually going to push down on the shorter time frame. Okay and then that would correct our stochastic on the hourly. What we need to do is we need to see bitcoin first push up and to squash out some of those um fears when it comes to dropping down to 38k, and if we can do that, then i think uh well have a short term pullback with a Good term to the upside, in the medium overall im, pretty confident in what is going to go on with the chain on the longer time frames. And but i am expecting volatility here on the smaller time frames. Until we kind of get through the next little stage of btc, ultimately btc is following everything and v chain here.

Um is at this kind of position where it could bounce from this area and actually go to the upside quite nicely or pull back in line with what is going on with bitcoin and the fear in the space when it comes to vet right now. Overall, though, if i am ever in doubt, i zoom out, i take a look at how things are looking on that daily, and i also take a look at how things are going on the weekly right. I pay attention to the bigger patterns and, as this is gives me kind of stability in the space. It allows me to see what is going on on those larger time frames and and make sure that everything and the structure is still heading up towards our dollar and im pleased to say that so far everything is theres. Nothing thats worrying me on these larger time frames, just a little bit of volatility on the smaller timeframes. Patience is key and guys theres very few cryptocurrencies out there that have performed just as well. Okay lets just take bitcoin as an example during march through to its peak of 65k, so march 2020, when it had its low crash through to the peak of uh march, uh or uh peak of way three for bitcoin. It only gained one thousand six hundred percent. Yet vechain gained eighteen thousand, okay anchor gained thirty, two thousand harmony, one gained eighteen thousand and matic gained forty, two thousand okay.

So when we talk about performance, um, ultimately vechain is going to net you more percentage points than youre going to get from something like bitcoin dont get confused between behind the dollar value of a cryptocurrency and the percentage gains that you can make right. Now we are talking about 766 in gains, which is a nice substantial boost and will be significant on your portfolio overall v chain has performed incredibly well, and i think its going to continue to do incredibly well once it reaches that dollar level. Guys im going to leave that video there if you have found it useful and informative hit the like button. I really do appreciate that, if you are new to the channel, do subscribe tap the bell, select all notifications, and in doing so you will be kept up to date with absolutely everything that we do here with this said done and out of the way, i hope Everyone has a fantastic day and ill catch.