CRYPTO CRASH | $800 Million Liquidated | IS THE PAIN OVER?
Getting liquidated, okay, guys so uh. Everyone who kind of saw yesterdays video were talking about what was actually going on with a big abc correction. We can kind of see that kind of playing out. We also pulled back down a little bit so were going to quickly just go into this, and basically there was an a a b and a c up, okay and then uh. Here we can also see there was an a a b and a c down. We are now obviously looking for an abc up. Okay, so again should be looking to kind of move up after a small pullback, which i think will be due soon and so well have this little a little bit of a b and then a push for a c. I do expect this to be a lower uh high here and then potentially pulling back down. I still think theres going to be some more volatility, as i kind of indicated yesterday. I think this. Actually, what could be forming down here might be a nice level of support at 58 600. If we can hold that, if not, then do expect us to pull down a little way lower, okay, but um. You know these are. Basically, these kind of things are happening because of leveraged positions ill get into that in a moment. But if we continue with this with a good support, we could actually have an elliott triangle appear here with a good level of support and which will lead to an absolutely uh massive uh pull up.
Okay, so eventually well, have this big break to the upside okay? So if i actually go ahead and grab hold of this a to e, for example, we would have this being our a this being uh b. Well, look for a c! Well, look for a d uh again! This will be down here ill, just put it out. The way for a moment and then a potential e okay so well be looking for something similar to this and uh. It might actually be the other way around, so she would be coming down here so abc uh. Let me find it where so be basically around here here here here and then down here. Okay, this could then lead to a breakout so well see if that actually works, that plays out or not, and the key thing is to hold that 58. 600. If we lose that, then i dont think itll be a triangle that will be forming here. Okay, so well have to see how that plays out in g course for for bitcoin, but uh. Ultimately, lets get into whats going on with liquidations. Do expect that to be a bit of a push today to the upside and then a pull back again uh in in bitcoin, but lets take a look at whats going on with liquidation. So here we have a coin glass and we can see in the last 24 hours its 609 million dollars in liquidations and basically this is people over leveraging themselves or using leverage as a whole right.
So if you have uh platforms like robinhood, for example, where they might give you a hundred hendrix leverage, basically you put a thousand dollar in and you can gamble with 100 000, and i use the word gamble because thats exactly what leverage is its? Not an educated um, you know decision making process its its high risk and um. Basically, the the people who hold vast amounts of cryptocurrencies uh wales is what they often refer to, as can see these leveraged possessions because its all open and you can see exactly what is going on and if theres a load of people going long. Then you can bet that theyre going to go ahead and dump on the market to leverage or bring those leverage positions down right, basically short, that market down and basically all the people who went long get liquidated and they lose their initial thousand dollars very very quickly. And all the money flows over to the institutions or into those whales right, um, so its important that we we at least on this channel. We would never, you know, talk about using leverage. We never use leverage ourselves. We buy the asset, we own the asset, not your keys, not your crypto. All those kind of things there theres a say is for a reason right and you dont get burnt that way. If you dont have a hundred grand to drop into crypto thats perfectly fine, you dont have a hundred grand to drop into crypto.
You have a thousand dollars. A thousand dollars is still going to get you significant gains um, but the idea of trying to multiply your profits by a hundred x is absolutely ridiculous and, as a result, youre going to get significantly burnt youre going to get wrecked fast and well. Here you can see 608 million dollars in the last 24 hours. This is actually a little bit higher. We had this article coming in at 882 million dollars worth of liquidations yesterday, right um and this analyst uh thats. What we want to call the guy um is basically calling out that the pain might not be over, and i do agree. I dont think the pain is over yet because of leveraged positions um, if youre, not squeezing you saw the same thing actually happen happened. I think it was last year with wall street bets right. They were, they were squeezing out leveraged positions on uh, some institutions that were trying to show uh. You know gamer stock right and obviously they just went the other way just buy up hold it. If you buy and hold an asset, you will have the power, you have the keys and you can control it and if youre leveraging, you have no no control over what the market does and you get liquidated right. So 608 million dollars in liquidations is just absolutely in insane amount of money. Thats basically flowed out of retail investors because thats what its going to be, ultimately retail investors, there might be a couple of institutions in there or a few companies that really dont know what theyre doing and but for the most part, its going to be retail investors.
Who are using leverage places like robinhood et cetera, getting absolutely wrecked? Okay, so on this channel? Well, never never talk about that! Well, uh well, basically buy assets with money that we actually have and we own the assets well get them into cold storage. If we can um and basically were not going to get liquidated when the market becomes volatile, okay, so as the market pulls back like we saw yesterday, our portfolio took a hit. We saw a few, you know thousand uh. You know dollars kind of wiped out the portfolio which is you know fine. You can deal with that on the short term. Thats, not a problem um, you know, but we didnt lose our cryptocurrency because of liquidation because we werent using leverage we bought the currency uh. We bought the asset and we hold the asset okay, so if any of you guys out, there are using leverage um seriously, consider and reconsider that um, obviously im, not a financial advisor, nor is chris, were not offering financial advice but its high risk, and i do Consider it just gambling at this point because youll never know uh. Once those leveraged positions reaches a certain threshold, then you can see that uh they all these. The institutions and the whales can see it and theyll go the opposite way and uh, basically just completely wipe you out, and here you can actually see the amount of uh liquidations, the longs that are still outstanding and the shorts thats still outstanding, theres 25 million uh.
You know dollars worth of long positions and 13 million dollars worth of short positions, and so obviously i think that we are likely to go down lower liquidating more of these short positions, but it is only 25 million left now, uh, obviously out of the nearly a Billion um so yeah its its easy to see that uh things are going to be. You know interesting to kind of see how things kind of play out, and obviously these positions so theyre going to just keep growing now right, because uh now were kind of getting into a lower area. I do expect a few more of the locations on the long positions as we drop down a little bit lower. These will actually might increase a little bit, and once these shorts increase a little bit, then the market will move back up and, of course, itll be liquidating the short positions as the price moves up. Then this long position will start to increase again its a cycle that will continue and but we can of course see you know liquidations as a whole, with 600 million um, you can see that ethereum took the brunt of the hit so far with 184 million dollars. Bitcoin at 171 million uh, litecoin, 23 solana, 17 and so forth. Right, so you can see its really heavy in those two safer um crypto currencies right because obviously thats the other terminology that gets batted around quite a lot. The ethereum and bitcoin are safer and again nothing is safe if you are using uh leverage so avoid that um not advice but thats, something i would never never do.
I would never use leverage so knowing that the fact that we had significant uh positions, kind of wiped out – and this also played into the hands of a big, abc move that was going on here. The fact that wed still think that theres 25 million dollars worth of long positions that still could get shorted – we are still expecting to see volatility around here. Whether or not it actually pulls back below 58 600 is going to be the question that we have to hold up and see whether or not thats, something that we should be expecting im, hoping that actually, that area holds out okay if we can hold out on Fifty eight thousand six hundred and complete that triangle and someone just quickly remove these abcs uh, so we can get a better view of that. Okay. So if i grab hold of my uh trend line here – and we can see that theres a descending um – you know trend line here with this support level at the bottom. Okay, if we find that here, okay – if this actually continues the way that it is doing uh, then we could actually complete that that move right. So basically, if i get this right, it would be an a a b c d and then an e and then from there is where you look for that break. Okay, so i do think volatility is something that we should be expecting to see, but hopefully that will actually play out if we get that triangle playing out, then thatll be very, very good for for bitcoin and for the entire crypto space as ultimately, if we take A look at our daily were heavily oversold.
Our weekly were overbought, but the game is just looking for a correction on the weekly chart. I think this is actually something that is going to pull back quite nicely over the next couple of weeks without actually doing any damage to the daily chart. Our a hourly is oversold um. Our four hourly is oversold, but hourly is headed up there in the other ball area. Okay, so we have to understand that we are expecting to see this uh abc kind of move. Each one of these waves is an abc move and so watch that watch. That kind of complete out and then have that break uh is which what is what were looking for here with bitcoin and when we actually take a look at the invite to i o dashboard, and we take a look and see okay, whats actually going on um. When it comes to the underlined data, we can see that we have actually pulled down a rating from b1 to b2 and the fear and greed index is actually still neutral right. Its pretty neutral its basically uh liquidating positions. Doesnt really necessarily affect the market. In terms of sentiment, but do expect retail investors to start getting shaken out soon in terms of what is going on with that fear and greed index, the sharp ratio is the concern right now. It has taken a significant dive below the 50 day average. This could take a little while to correct, and so do have to be aware that the risk reward ratio is not in our favor right now.
Okay, so um do expect this to again kind of support that theory of uh. We havent finished with liquidating positions and um. We could actually start to see a little bit more of a pullback. The risks do outweigh the rewards right now for for bitcoin right, and so we have to be aware of that. Now. Not all altcoins are following the exact same pattern: just take a look at avalanche. It is actually performing in the green today and again so its important that we acknowledge that the technical areas of each different, um altcoin, have got an impact on the overall market. Right and bitcoin, obviously is pulling down the majority of the market. But most of these uh coins as well were in leveraged positions. So again they were all getting liquidated at the same time as the market started to correct and pull back down compounding the problem um, but obviously for avalanche. It seemed to be doing actually quite well and pushing back up. So, if i actually jump over to here, we can see that its actually up 7.6 7.2. Today 5.4 for the week and again it is actually performing well theres. Only a couple of assets like this um on the charts here so its worth kind of just pointing out those and ultimately yeah. I would be concerned make sure were aware that there is some volatility to be expected and that we should be looking at uh. Potentially, coming back down uh, if i just bring the chart back up into our level of uh 58 600, hopefully hold that as support.
If not, there is a support line at 57, 800 and so do watch out for that one and again theres a whole host of additional support levels to be found down here as well um. So you know 53k, for example, uh theres also 55 and a half k so depending on the level of liquidations, you know theres a lot of support to be had here. I dont think were crashing all the way down um to some crazy low numbers uh. Not yet we havent yet actually peaked out with bitcoin um. I do expect that still to occur, and but this is again a natural thing that happens in the space when uh people who, who are using leverage do not necessarily know what theyre getting themselves into and uh. Basically, a lot of money is up to grabs um for the whales and the institutions when they see it, they take it so um, as always uh. I will leave this video there. If you have found it useful and informative, then do hit that like button.