THE REASON WHY BITCOIN IS CRASHING [And What's Next For Crypto…]
You will need to watch if youre holding any crypto at all because were seeing something big happening for not only bitcoin but also in the traditional markets. So welcome back everybody. My name is cristiano, bringing you cryptocurrency videos every day, teaching you how to make money in this market. If you are new to the channel, then make sure to subscribe and activate the bell right now. So lets kick this off. If you watched my video yesterday, you would see that i issued a warning that the traditional markets may start to come down a little bit and that may bring bitcoin down with it. So what have we seen since then? Well, we have seen the bitcoin price go down. We have fallen from the support level here at forty seven thousand dollars down to well right now we we fell down all the way down to forty four thousand four hundred right now. We are slightly above that, but why are we going down right now? Well, just like i talked about in yesterdays video, its still ever grand so theres still a lot of uncertainty in the traditional markets right now, and what you can see right here is that the evergrande stock has been going down and by the way, if you dont Know why this is significant, make sure to watch my video from yesterday where i go through this, but you can see that we opened up the asian markets a couple of hours ago and yeah since then we have been going down, so we did see a big Drop in the evergrande stock, and this also spills over to the rest of the traditional markets, so in the futures markets here in traditional markets, we did see also a drop here.
When we opened up yesterday, we did see an immediate drop next to the or down to the next support level here at 4360.. So this is a level that needs to hold for the traditional market. So you can see that this is the previous structure point. So you can see that yeah, we did struggle with this a little bit this orange line here at 4, 367 on the traditional market. When we eventually went up here, we did see a massive, a massive run up here. Now we need to hold this in order to maintain the structure of the markets here in the traditional markets, so that is whats spooking the markets right now, but just like i said in my video yesterday, i think that this whole thing with evergrandy is actually blown Up and i think its not as significant as the market is reacting to sure no one knows whats going to happen. I mean we could see something big happen. We could see a big drawdown in the traditional markets bringing down crypto with it, but right now, im not in cell everything in jump ship mode, no, definitely not im. Holding what im holding. I got the dry powder on the sidelines. If we do see a big drop based off of the ever grander situation, escalating to the downside, well, i am ready to buy more bitcoin to my huddled position, so theres also the federal reserve expected to offer clues on stimulus, tapered timeline.
If you dont know the federal reserve throughout the uh pandemic has been buying up stocks, they have been buying up assets, you know stimulating the economy. This is also reason why uh the stock market has been going up, because you know if they are buying it. Why wouldnt the regular people do it as well and theres just been so much money, sheep money, uh flowing flooding in the markets right now, so thats been propping up every asset, basically and now theres some fears that they are going to reduce that and eventually stop Doing that all together and whats going to happen with the economy, then whats going to happen with the stock market then well. That is the fear right now, so we have the ever grander stuff. We have the federal reserve potentially starting to stop buying assets even as early as next month, so thats whats driving the market down at the moment, but heres the thing who knows whats going to happen. Maybe we are going to see a big drop in traditional markets. Uh bringing down bitcoin, but if we do see that remember in uh in the big covid crash, so remember back in 2020, when you saw this big drop here were on the daily time frame. So you did see a big drop right here. We went down in traditional markets, we went down by 35 in a matter of you know a month or so same thing with bitcoin.
We went down from ten thousand dollars down to, i believe three thousand five hundred so big drops in the traditional markets and uh in bitcoin as well, but this was a very good buying opportunity because look what happened after that and if you bought this dip, you Were doing very well in the stock market, if you bought the bitcoin dip well youre, sitting at even with todays prices, which are far from the well, not that far, but its uh some ways of of the all time high youre, still sitting at like 15x in Bitcoin and even more in the old coins. So if we do see a big drop im ready to buy more, but i think in general that people are, you know a bit too fearful when it comes to the ever grandy stuff. But i am not an expert in the traditional markets im just a guy on the internet, talking about what he feels and so yeah. If this really starts to go south, i do believe that the chinese government are not going to let things escalate because its going to hurt their economy its going to hurt their country. So i dont believe that they are going to let this escalate too far and uh yeah thats just my opinion. We will see what comes with this guys and if we go back to bitcoin, even the luxe algo did give us a warning here. So if you do remember, we have this big overhead resistance here at fifty thousand dollars, and i did tell you that on my settings, the lux algo is most likely going to print a buy signal here, but that that i would disregard it because its so close To the resistance instead, i would wait for us to get above the orange box here and then you know uh play off of the buy signal, so we did get that buy signal in the lux algo, like i said, but again getting in here at the proximity Of this massive resistance is not something that i would do so i would disregard this just like i said in my video, but from that point you can see that we did actually see a cell here also in the luxe algo, so thats the state of the Luxe algo right now, if you took this cell and uh yeah, then youre sitting at profit, but uh yeah.
Whenever i do see a big buy in signal in the lux algo thats, also making sense uh with the overall ta of the market. I am going to update you on that moving forward also for bitcoin. We have broken out of this channel right here, so this is looking a bit bad as well, and how much lower can we go? Lets talk about that? How much lower can we go on bitcoin right now? Well, the big thing is forty, two thousand dollars, so this is the level i would be watching at. This is the level i will be buying that if we come down to the forty two thousand dollar level, i will be a buyer and you will be able to see that on my channel as well, so yeah make sure to subscribe and activate the bell. If you want to see that guys, im going to walk you through my trade, as i usually do in these circumstances, thats, basically what i got for you today guys make sure to subscribe and activate the bell.