How low can we go during this market correction? Well, in todays video im gon na be taking a look at the bitcoin charts and the ethereum charts trying to answer that exact question. My name is lark everyday. I make videos talking about cryptocurrency investing. So if thats a topic youd like to learn some more about, maybe just stay up to date with you should definitely subscribe to the lark davis channel. Also, you can take a second tap on the thumbs up for the youtube algorithm id massively appreciate it and, of course anyone whod like to get a notification. When i put out a new video should click on the notification bell by the way. If you are a cryptocurrency trader, then you absolutely have to get yourself an account over on femex. You can trade bitcoin, ethereum, polka, dots, solana, cardano. They got all of the top coins for you to long or short, and right now they have an incredible incredible deposit bonus going on. You can get up to three thousand five hundred dollars in deposit bonuses. These are trading bonuses that you can use on the exchange. So go and check that out. You can also get an additional hundred dollars by using the link down below in the description to start, your account youre also going to get 10 off of your trading fees for using that link. Now lets talk about the price of bitcoin, its looking pretty gnarly at the moment, guys i got ta say i got ta say we lost, of course, our 50 day moving average, which you know generally not a super awesome sign.

We can see, of course, when we cross over the 50 day, moving average on the upside tends to be a great time to go long on bitcoin and when we cross under the 50 day, moving average well, um can be a time of pain. Now is going to be a short time of pain where we just get this kind of situation happening. A few big red candles move sideways a little bit blast back up, or is it going to be a deeper time of pain where theres gnashing of teeth and pulling of hair? Well? Potentially, you never know, but uh lets hope we dont go go this crazy. I dont think were quite in that sort of situation. Yet, however, losing the 50 day moving average is not an awesome sign by any means ill. Take that off there just to clean this up a little bit and weve got a lot of lines on the chart. Here the rsi still falling down here for bitcoin now the rsi currently is at a level as low as this right here, where we got back to about ‘ 500 approximately, so that was a massive massive buying opportunity back here in the market. This was also under the 50 day, moving average when this did happen, so very low rsi reading right here also the rsi right now is about as low as the 29 thousand dollar bottom back in late july. So that just gives you an interesting indicator on how low the relative strength index is right now for the market.

Now i just want to make it very clear: we can still go into an oversold reading on the daily. We had an oversold reading on the four hour charts. We might still get our oversold reading on the daily where we actually come below this sort of light gray box here and come farther down get an rsi reading under 30. Here now, as you can see the last time that happened right here back on the 19th of may great great buying opportunity to price them all the way down to 30 000. That was a great buying opportunity. Basically, an oversold reading daily on the rsi tends to be a good buying opportunity. So if i see that happening, i would definitely be a buyer in that situation, but even at the current levels you can see in terms of the rsi its reaching levels where traditionally there is some opportunity here. Obviously, theyll want to see that reverse before you uh hop in there, because we could still go lower. You actually want to see a reversal candle coming in to let us know that we have actually uh bottomed out right now. We have not bottomed out. We are still in a situation where we could see the price coming lower here for bitcoin. We have lost lots of major supports during the week, so we had a major support here around uh sixty two thousand dollars. We blasted right through that. We also blasted blasted right through our uh, sixty thousand dollar support, which you know psychologically big number and all that jazz.

We blasted right through our 60 000 support that didnt hold. We blasted right through 58 000 that also did not hold so weve. Seen basically bears being control of the price action at the moment now, our next major area of price support, assuming we dont get any kind of reversal coming in here anytime, soon is down here around 53 000. So this sort of 52 000 to 53 000 range right in this area, i think, is a very, very key level for bitcoin to hold. I would like to see it not go much lower than that. Obviously, fifty thousand dollars, then, would be the the next major area of support. If you lose fifty thousand dollars welcome to goblin town, basically, its gon na be fun. Its gon na be fun guys we like, but we like, buying dips right. We like buying dips. I would be watching here uh for this as the next major area. Obviously bitcoin just sliced through all the supports going down so will 52 553 000 hold. We shall see we shall see now if we get down here, though, i would just like to point out that would actually coincide with about a 23 move from peak to trough. If we found support there, that would pretty much line up with the kind of price corrections that we frequently see during a bull market in bitcoin. A 20 plus correction is a totally totally normal thing to happen during a bull market for bitcoin.

Now, currently, we are at 19 off of the previous all time high, so thats pretty good, so far, its pretty good, but we could go lower, so id be targeting this area here around 53 000 to 52. That, of course, would be twenty three percent correction. Well see if we get there, although you do have to keep in mind a thirty percent correction, its not off the books, either its not off the books either. Of course, we have some interesting areas of uh uh. Previous resistance could flip into price support around that area too. Thats also 30 might sound, really scary, but again go back and look at 2017s charts theres plenty of 20 30, even 40 corrections that happened during that time and nothing to be scared of these are a normal part of the cryptocurrency market. Lets also take a quick look here at the ethereum charts theyre, also not looking super hot, so thats, where thats my thoughts on bitcoin lets. Look at ethereum here, real quick ethereum has lost as well its major support, so currently, oh its just under four thousand dollars. Interesting, very, very interesting, so we also have seen ethereum losing major major supports, so this was a really important area of price resistance. We did not manage to flip that into uh support, not yet anyway. I guess if we did reverse here, it would be approximately in that zone, so we could call that a a flip if we do get it to happen, but we have not seen that happen, yet we are actually still in the situation here where we could see The price coming down even lower, so if we, if we do, then i would be very strongly watching this area here around three thousand six hundred and fifty dollars approximately so thatd be a pretty important area.

I think to keep an eye on for ethereum moving down and its just amazing. You know its just uh. These trend, lines and stuff are so important to watch. You know for the big picture when im looking to to buy low right or even to sell, high right, sell, sell whatever assets whenever you want to sell them, but um we saw ethereum break this trend line. Of course we talked about it as was happening and um yeah a day or two afterwards, or so the trend lines broken guys. This could get real bad, real, fast and um thats. Of course, whats happened. Weve seen the price of ethereum fall from forty eight hundred. Fifty dollars all the way down to now around four thousand dollars, so once you break that up trend, the price tends to move relatively quickly. A lot of traders will start getting out of positions or start shorting the market. Once you get a big move like that happen now the current rsi for ethereum also reaching very low levels, but you know it can go lower. In fact, we have not seen an oversold reading on ethereum on the daily since march of last year, so i feel like were due for one were not actually that far away. Currently, if we nuked right down to thirty six hundred fifty dollars, you might get that reading, but uh. If you do, if you do see an oversold reading on the daily on the rsi for uh ethereum, that would probably be a buy.

But i i hope i hope, of course, that well see this general area flip around for some price support, but that next area right here around 36.50 – that would be the area to keep an eye on. In my opinion, now all that fun stuff being said, i want to share some interesting charts and ideas with you about ethereum, as well as a cool bitcoin, related story, so raul pal posted this. He said, ive been showing this spooky chart of ethereum now versus bitcoin. 2017 in various forms says this: is my live cix over on bloomberg so to the day and price this um, this chart has just been following right, along with bitcoin from 2017. This course the current ethereum chart well see it a bit closer there thats just spooky isnt it thats, just spooky. Look at look at how closely those assets are tracking next to each other and, of course, heres. The uh the sell off were seeing here at the moment very very interesting, i its always fascinating for me to see these charts playing out because the charts are essentially human emotion. You know with mathematics, applied to it its all the charts and stuff are, and you can put different trend lines and patterns on top of that and think well. This is how people tend to act in these situations, and so here we see ethereum picking up this. This kind of enthusiasm that uh, you know bitcoin picked up back in 2017.

, just an interesting chart interesting chart to share with you. Anyway, people are buying ethereum, though ethereum remains very, very, very popular with investors weve seen massive exchange outflows for ethereum. You can see this right up here. This was some massive ethereum dip buying that has gone on crazy stuff right there, absolutely just huge amounts of ethereum being taken off of exchanges. This one was uh pretty nuts as well, so weve seen a huge amount of ethereum taken off of exchanges, the other day as well theres another chart showing that there so big big interest in people to get ethereum and also ethereum really turning into money right. This happened the other day well today, actually earlier today, late last night whatever, but this happened, a banksy painting has sold for 3093 ethereum and an auction house first, so sothebys is actually selling art in ethereum. Now so you can bid in ethereum, say: oh yeah ill bid a hundredth year ill be at 2003, but a thousand ethereum thats, crazy man, youll notice theyre, not using bitcoin, curious, isnt it but theyre using ethereum, because ethereum, of course, is also money. Bitcoins money. Ethereum is money: bitcoin is more of a store of value. Money. Ethereum is more of a a network money and, of course, artists want to get paid in ethereum. Why not? Why not? Because ethereum im, still gon na, go up to like 25 000 guys pretty pretty cool stuff, pretty cool stuff here, um to see its just a nice adoption story.

I know its like the art world and like ridiculously rich people, spending 12 million dollars on a painting. Thats, you know not necessarily something for everyday life in terms of like adoption stories or whatever, but its just a pretty cool little thing to share with you. Also. We saw this happen, which is pretty nuts, so an australian baseball giant is gon na pay players in bitcoin and hold bitcoin on their balance sheet. Now. The most surprising thing about this, for me, was that australians are into baseball. I did not know that was more. Just an american thing, but i guess you know australians – are playing baseball too cool man cool. I learned something new. Every day there you go anyway, this australian baseball team that ive never heard about before they are now apparently play playing their players in bitcoin. Again, just nice little adoption stories, its pretty cool, its pretty cool and weve talked a lot about receiving your salary and bitcoin, and some big celebrities doing it and some big sports people doing it. But here we go now its a whole team, a whole team getting paid in bitcoin and then theyre also, of course, going to hold bitcoin on their actual balance sheets for the team, so thats, pretty cool man thats, pretty cool. Why not thats awesome just a nice! Nice little bit of adoption, every little company thats doing this buying bitcoin to hold on their balance sheets or paying their players in bitcoin or whatever.

It just adds to the critical mass of cryptocurrency adoption that were currently seeing globally. Final thought for today is actually your question for today is: where do you think were going to bottom out on this current market correction? Do you think were going to see bitcoin bottoming out around? You know 52 500, which is kind of where i think we should be watching for. Are we going to go lower? Are we going into the 40 thousands again or is this it? Are we currently seeing the end of the dip and were going to bounce back up from here? New all time highs soon curious know your opinion down below in the comment section.