Bitcoin Crypto Crash Over?
Some latest updates from the sec and coinbase and also, of course, an update on what is happening with the evergrand story out of china, my names lark every day i make videos talking about cryptocurrency investing. So if thats a topic, you would like to learn some more about make sure you subscribe to lark davis channel tap on that thumbs, up button for the youtube algorithm and, of course, click on the notification bell, so that you know when i put out a new Video by the way, every single week, my team and i produce wealth mastery. This is a cryptocurrency investor report designed to help give you an edge on the markets. Every single issue youre going to get a deep dive, altcoin report top tier technical analysis, a step by step d5 tutorial, trending coin analysis, my portfolio updates, airdrops, token sales and much much more. All of that for less than 10 bucks a week, click on the link down below where you can learn more about becoming a member. Today, now lets look at the charts. I got my bid filled thats thats, exciting news. I had a bid and at 42 500 in the morning i woke up to see that had exactly hit on binance and then the market dipped some more cant win them all. Cant win them all. I did have another order that i put in at 40 000, which just missed just missed, got a little bit too over excited on that bed should have put it in for like forty thousand two hundred dollars, but it got filled anyway.
Such are things now. Whats. Interesting is that the candle wick that we saw today daily candles not closed. A lot could still happen in the next 20 hours. Mind you, but the wick that weve seen so far brought us all the way down to 40 000, which is a pretty important area of price resistance, flipping now into support. Potentially, we can see that all the way back here and again here and again here, that price area acted as a zone of resistance were now seeing that potentially acting as a zone of support. Also interesting remember: we were talking about this last week, just after we had that big flash crash back on september 7th. I guess those two weeks ago now remember how i was talking about how often what we see with these flash crashes is that the first sell off is not the final sell off of that particular market correction. We usually have one big dramatic, sell off at the start, followed by another sell off later well. That is exactly what we have had happen here in this situation now, right now, bitcoin is down 24 from the recent peak price. Obviously, thats not the all time high, but when we got 53 000 here recently down 24 from that now, how does that stack up with historical price corrections in the market? Well, lets have a look here. We can see this uh price correction here 27. Of course, before the market completely rolled over, but uh 27 from the peak all the way down to the bottom here here we had 18 peak to bottom 26, peak to bottom 31, peak to bottom, so a 24 correction that kind of fits within the general uh Frame of how much bitcoin will correct during one of these big corrective cycles that it so frequently goes through in the market now whats very interesting to see as well is that candle wick.
I mean just look at that. Once bitcoin got down to almost 40 000. We had a massive amount of buyer pressure. Stepping up here, gobbling up bitcoin in the low 40 000 range. It went real high, real fast, pushing the market back up from that sell off point now. Does that mean that was definitely the bottom of the sell off? Well, it did come into our support zone, so thats an interesting point to bring up here. We did see buyers stepping up in a pretty serious way here and the total amount of correction so far generally matches up with the kind of peak to bottom corrections that we do see for bitcoin during a market cycle. So all of that kind of lines up, but i think really lets keep it real, the market short term bottom being it or not, the crash being over strongly depends on the news out of china in particular, i think for the rest of the week. What develops with that evergrand story. We also, of course, need to keep an eye on whats happening with the fed this week the infrastructure bill its more of a nebulous kind of thing, but definitely the fed news, i think, could shake up markets a little bit uh in the week as well, but Definitely that evergreen news has the potential to cause some more scares in the market. That is, of course, basically what these red candles right here represent one two, three, those three red candles: thats evergrand, thats, evergrand, thats, the ever grand story.
If youre, you know, if youve survived this far and you look back in a few years and you look at this dip and go oh yeah, thats right the september china foot of 2021, i mean come on. Can we seriously get some new fud by the way? Why is it always china, man cant, we get some new? Can we get? Can we get at least get some india fud again its been a while since weve had some good old fashioned india fud? Maybe we can get some russia fud or some europe fud chinafud? All the time always with the china fud in the market, man. Now i personally, as i mentioned, i did get my bid filled at forty two thousand five hundred dollars. I have bids in right now to buy bitcoin at forty thousand dollars. I also have a bid in at thirty eight thousand dollars thousand uh ethereum dollars, luna at twenty dollars and polka dot at twenty five and twenty two dollars. So if we do get more downside, im ready for it, if we dont well cest la vie man sale of e, my bags are already well packed on all four of these cryptocurrencies. If we get farther dips, i will happily add in to those positions. If we dont well thats, okay, now these particular bids just to let you know they represent about twenty percent of my cash positions sitting on binance, but actually only represent about five or six percent of my total stable coin position.
I tend to never go all in or all out on any positions ill ladder out of altcoins ill ladder into altcoins. I stack bitcoin for long term. I stack ethereum for the long term thats how winning is done, get the dips guys buy low, sell high, not the opposite, just a meme to share with you as well. I went kind of meme crazy today over on twitter but uh. It really feels like this. Sometimes, with bitcoin we were kind of just chilling a lot for a while after we saw that big flash crash, it wasnt doing a whole lot and everyones like come on. Bitcoin do something well bitcoin did something doesnt always do what you want it to do, though? Does it bitcoin fear and greed index also dropped down to 27 times of great fear tend to be times to accumulate positions? Now i would like to point out here just so, you understand fear, you know a decent reading, but you really want to buy an extreme fear. You can add to positions im, adding to positions im, adding to positions about more bitcoin ive got bids in for bitcoin and ethereum, and a couple altcoins, but the extreme fear times. Those are really the good buying opportunities in the market, but the 27 reading on the fear and greed index has the lowest reading since july by the way another another fun meme for you, speaking of fear in the markets, its so funny.
When you look at the psychology of investing in of investors right, people are gon na. Tell you if youre here when bitcoin gets to a hundred thousand dollars, bitcoin gets the half million dollars. People are gon na. Tell you oh youre, so lucky about it. Under fifty thousand dollars, or if youve been here since last year, i noticed a lot of you guys have been if youve been here since last year – oh youre, so lucky about it under 20 or under 10. This market will test you like no other market, its crazy. This is a super super volatile super fast moving 24 hour, a day market which is like drinking from a fire hose theres hacks, theres crashes, theres macro news, theres, the sec theres, the fed theres d5 theres nfts, theres 20 different block chains. You can be using its nuts and youre going to be tested all the time with all kinds of drama, and this meme really sums it up. Well, you know if you went through these horrific crashes, these incredible market events. Well, you probably have the diamond hands already and if youre newer around here understand that anybody whos been in crypto for more than a year more than two years, theyve seen some stuff man theyve seen some stuff and if theyre still here its because they realize the Potential of the market, because theyre looking at the damn big picture, lets move on to talking about some el salvador news.
1.6 million people in el salvador are now using the bitcoin chivo wallet. This is 25 percent approximately of the population of el salvador. Right now using bitcoin thats, crazy man. If you had told me last year, hey look next year, theres going to be a small central american country that launches bitcoin as legal tender and within a couple weeks of them doing that 25 of the population will be using bitcoin id, say well, thats prob, probably Something that i could see happening, but that would be crazy well here it is its happening and its crazy. Its crazy incredible adoption adoption rates absolutely soaring, theyve gone from zero to 1.6 million people using bitcoin in el salvador in the matter of just a couple of weeks, thats incredible. That is incredible: wow wow! I absolutely love it. This is literally bitcoin banking. The unbanked remember this is a country where 70 percent of people have no access to traditional banking infrastructure as a country ripe for the disruption of cryptocurrency technology. Bitcoin is the tip of the spear going into el salvador and allowing people to have that economic freedom, freeing themselves from the us dollar are, at the very least, giving themselves another option, which is very, very important. Awesome love to see that next up, some quick sec news for you, the fcc of course, one of the three letter members of the international global banking mafia. So we talked about the coinbase story. Coinbase was going to launch a lending product, sec came out and said: how dare you try to do that and then they subpoenaed a bunch of information from coinbase.
They subpoenaed a bunch of staff from coinbase. They threatened to sue coinbase if they dared to launch such a product. Coinbase of course asked well. How can we do this? Can you give us regulatory clarity? What is the rules for this? They said nope, we cant tell you what the rules are, but we can tell you this: if you do it were going to attack you, you will be threatened, you will be attacked well, coinbase decided it. Didnt need to go, have a giant legal dispute with the sec. They have canceled their lending product. In case you have any any sort of illusions about the role of the sec. If youre a regular person in the usa, they hate you, they hate you theyre, not here, to protect you theyre here to stop you from getting wealthy youre, not allowed to earn four percent interest on your dollars. You have to go over to jpmorgan chase bank and earn 0.01 percent interest. Youre not allowed to invest in pre ipo stocks, youre not allowed to invest in token sales, youre not allowed to trade on leverage youre not allowed youre not allowed youre not allowed youre, not allowed thats what the sec tells to regular investors. Meanwhile, meanwhile, what do the elites get to? Do they get to do insider trading, the politicians, man? They all do insider trading, all the time federal reserve. There was just a big scandal about them. Doing a bunch of insider trading, no ones gon na go to jail for that no ones gon na get fired for that no ones gon na get in trouble for that.
The banks commit fraud on a massive scale on a near daily basis. Nobody gets in trouble for that. The sec is not looking at that stuff. Whats the sec spending all their time and energy doing trying to crush regular people. Not your friend, not your friend, badass cc bad sec. These freaking guys man, final story for today lets do a quick round up on evergrand, so evergrens potential debt blow up is not a contagion event for the market. This, according to the man who called it 10 years ago, saying that evergrand 10 years ago was already insolvent, theyre already living well beyond their means, and that this company would inevitably crash into the ground. So thats pretty damn interesting. He said nothings changed in the 10 years since that reshirt research – i just identified when the problems started now its really interesting to have this guys opinion because hes, the guy, who originally called it and hes, saying that its not going to be a contagion event which I think is a very important thing to point out. He says theyre going to do whatever they have to do to contain the harm to the broader economy and limit spillover. He said that investors, however, arent likely to observe the wheels within the chinese machinery moving because of beijings tendency to operate behind a veil when it comes to business matters. So there will be some backroom deals, some backroom agreements, stuff that might be partitioned off.
China, probably doesnt, want to be the reason for a global market crash, theyre, probably going to step up and have some kind of bailout package or some kind of way to let this company come down to earth in a less dramatic way. They want to limit the impact of a collapse of this company, which is almost certainly going to happen at this point, unless, of course, they bail them out, but at least they can do is limit the impact they dont, of course, want to see that then have A spillover effect – and it already is having a spill over effect to some degree. So this is from s p global ratings. They say a default by chinas evergrand could test the governments capacity to back, stop potentially substantial failures. Now what they said a little more in depth here, they said that a default by evergrand will neither lead to a tidal wave of defaults nor mere ripples from a pebble in a pond, but something in between the two evergreens, a massive company. It accounts for something like two percent of chinas gdp. Its a pretty big deal, pretty big company right, but the impact of its collapse will hopefully be limited enough. The chinese government doesnt want to you know let things get too bad. I would assume so were going to be somewhere in the middle. It is a serious market event, probably not the lehman brothers of china, though its not going to cause a global financial meltdown at least thats.
What quite a few analysts are saying right now? Yes, its significant, no, its, not the new lehman brothers, its not quite that significant in terms of its impact, but it is affecting western stocks and western bonds. Um evergrand its a massive company that a lot of western companies are exposed to the likes of blackrock. For example, they own – you know the part of the equity of this company, their own bonds in this company, so they have been affected by this whole situation, but its rather limited the impact of all this on these companies. When black rocks a giant financial titan, they can absorb a few billion in losses without it being a very big deal. To be honest, so the evergrand story continues. We still dont have word from the chinese government whether or not there will be a bailout for this or some other kind of package to rescue the people whose homes are now not going to be built or to find a deal with creditors, some kind of negotiation Or something like that, but the situation continues so well be keeping an eye on that. Just my two statuses for the day, of course, your question: have you been buying anything during this dip? As i mentioned, i bought a little bit of bitcoin.