Bitcoin (BTC), Ethereum (ETH), and Crypto Market Update | BTC and ETH TA | Token Metrics AMA
Youve been waiting for. The market update lets begin with ethereum price action a little bit of a bummer, its a little bit of a downer. If you tuned in to yesterdays stream – or you were watching the market update on tokyometrixtv youve got an inkling as to why let me summarize it theres trouble in the legacy world. A big company called evergrand has 300 billion dollars worth of debt. Okay, they were borrowing money from the bond market and using it to pay dividends to stockholders, in other words, its a questionably run company and all that debt may literally, they may default on it. So its causing stocks to go down its causing a lot of problems and now in ethereum, okay, the 21 day moving average, is crossing below the 50 day moving average. This is a sign along with our visual trends indicator, which you know you can see. If you join up on our website is telling us that you know ethereum probably is gon na go, i dont know 26 to 2500. At least it may not do it today because todays like a fear day, we may be alternating between you know if everything is terrible and everything is fine for the moment, the moving average crossover in ethereum is not positive and could lead to more downside. Now, in bitcoin its the same thing in this case, the 21 day moving average is crossing the 50. Today, back when this happened for selling may and go away, there was actually a little bit of a rally before bitcoin really fell apart.
But the moral of the story is when the 21 day in green crosses below the red line, which is the 50 day moving average just this year, its been a pretty good signal that you know you want to have half your portfolio that you huddle and you Want to have a portion of your portfolio thats, somehow either protected or used for trading, not investment advice. I cant wait till this legacy. Situation is cleared up, but that doesnt look like what its going to be like today in the s p. 500. You have a big down day today: okay, if theres going to be defaults and problems with banks in china, thats going to result in problems all over the world. The legacy word for it is contagion. So if there is going to be this type of problem, stocks are going to get hit. We talked about that. Yesterday. Stocks fell below the 50 day, moving average thats the red line and to keep it simple all right, because i know you want to get to the old coin, so keep hitting that like button because were getting there. But the stock market looks like it literally could go straight down as a result of this head and shoulders top that has this strange downward sloping neckline. So, if keyword, you know because stocks have this habit of going down and bouncing back, but if stocks really start going down sharply, okay, you could have a 10 down move or more qq thats.
You know apple amazon, netflix, google, microsoft, a lot of evidence that smart money was selling to small retail traders. Qqq hit the red line this morning and yesterday, at the 50 day, moving average and then fell out of bed. So there might be a bounce tomorrow might be, and everything is okay, trade, but folks this is not good. Legacy is impacting crypto because remember, crypto is a risk. Asset altcoins require a flow of money to come in consistently in order to maintain prices. Thats. Why? I want you to keep. You know, keep some cash so that if this thing really falls you can jump in, because legacy is telling you that theres trouble now theres a different kind of trouble brewing. So not only do we have evergreen okay, but weve got a government shutdown and a debt ceiling problem, which is a nice way of saying america is running out of money right. They dont even have permission from congress to run the printing press now. Normally. This affects short term government bonds because everybody goes. Oh, no, are they going to shut the government down and are we going to get our payment on our little 30 day, treasury bill or iou? Okay, thats, not whats happening whats happening is long term bonds. 30 year bonds, the interest rate is rising, normally long term bond interest rates fall when people get worried about stocks, like oh, my god, stocks are doing bad lets, buy bonds which drives the yield lower.
Those three big green candles that look like they came out of an altcoin thats, the interest rate that people are charging america for a 30 year loan. So the the credibility of america is in question at the same time as sort of a contagion problem is unfolding with a massive massive chinese real estate developer. So if youre wondering youre like gee isnt this supposed to be good for crypto, yes, eventually, but not right. Now not in this phase and heres. Another reason why the dollar, oh god, this chart this chart, breaks my heart right. The 21 day, moving average is bouncing off the 50 day moving average, so the dollar is actually breaking above resistance, okay, which i i swear. I i thought id never see this but im seeing right. Every big mistake starts with denial and i would be mistaken if i denied what was happening on this dollar chart now. Why is the dollar going up if there are all these problems and questions about u.s, credibility, etc? Well, in the emerging market world right thats, outside of like the g7 right south america, asia, africa, if people have a hard time, borrowing dollars or when people get scared in the legacy world they run into the dollar. So stocks are falling. Fear bond yields are rising. More fear, the dollar is going up even more fear, so its like a fierce sunday with a cherry on top and it really doesnt taste good.
Its actually quite scary. Token metrics is a cryptocurrency investment platform that helps users leverage machine learning to become better crypto investors.