BITCOIN, CRYPTO, STOCKS TAKE A HIT!!! Bounce incoming?
So the dow jones was down two percent today. 653 points 3.2 for the s p, cracked below 4 000. For the first time, in a long time, nasdaq down 521 points – 4.29, 11, 623 on the nasdaq. So what happened today that triggered a lot of this sell off, so inflation prints coming out this week, fed board members are going to be speaking this week and neil kashkari spoke this morning on cnbc and he said when asked if the fed is watching the markets And is going to bail out the markets, he said. No, our mandate is to control inflation, stable prices and that they are committed to bring prices back into control and back into check and theyre going to do what they have to do and when he was asked about markets. He said they dont really pay attention to markets, he said, but he believes that markets and asset values should be back where they were pre pandemic level across all assets. So that means the markets. That means crypto. That means real estate, so they definitely want to rein in the bubble in real estate. They want to rein in the bubble in assets in crypto in stocks, so they are on a mission to get inflation under control, keep the interest rate policy in place and tighten uh as much as it takes to rein in inflation. So lets take a look at what weve been watching over the last couple days, so uh the dow jones.
This is dow jones on the daily did take out this last um. This last low right here so now its putting a newer low, a new, lower low uh since going into last year and since the top. So this is a new lower low. So now were looking for more downside and if you want to know where pre pandemic levels are that neil kashkari is talking about, were going to mark it off on these charts. That would be right here, which is around that 29 000 on the dow, which is still another from here. That would still be another Music, eight percent down on the dow, which is overall about 20. You know 20 or so down from the peak somewhere in that neighborhood on the dow. So lets look at the peak here and drop down thats about a 20 drop nasdaq pre pandemic level is going to take it now. This is the big one here. If the nasdaq dropped all the way back to pre pandemic youre talking about that level right there, which is 97.47 on nasdaq, which is a long way down from here, yet another 20 from where we were so the peak right now, nasdaq is down uh 27. So another 20 there will be 41 percent down now youre getting into a 50 42 decline from all time highs in the nasdaq, and that is what the fed is targeting and where they think values should be based on what neil is saying.
This is the s p. That would be s p around the 33.99 level. So lets take a look at where that is right. Now that would be another probably yeah, 15 on the s p. So that brings the s p from all time highs down about 29. 30 percent so thats about where, where things were back in 2018, when the fed changed interest rate policy markets, theres the s p right there on that drop and uh or thats 2009 im sorry 2018 would be right. Right about here is yeah thats, the 2018 selloff right there, so that is basically 20. So a little bit more stringent on this round versus the last round lets take a look at bitcoin because bitcoin is a risk asset and its falling in the category. So theres a lot of things that weve been watching on bitcoin. Obviously the parallel channel between here and this level right here that weve been watching for a while, has now broken right there. So price is well below that parallel channel right there and then this local parallel channel here a lot of people were calling a bear flag has now broken, and the question is how far down on that bear flag with this go, so you have probably about a 25 range on that bear flag. So if that were the case and price dropped 25 from the breakdown that puts it at around 27, seven thousand dollars or so – and i think theres a lot of different confluence in the charts that show that twenty five to twenty seven thousand dollar level.
But first thing is first uh lets remove this here. Lets take a look at where is pre pandemic on bitcoin, so bitcoin dropped right here in 2020, pre pandemic level was around ten thousand dollars, so bitcoin were to drop to ten thousand dollars. Um like the markets. Back to pre pandemic levels, that would be another uh well thatd be another 60, 67 65 down from where its at right now, and that would be a complete drop of around from all time highs about 85 percent. So bitcoin has dropped 85 percent in the past. In a bear market, the question is: will it do it this time? Will it hit 10 000 a lot of levels to get through first, so this 29 000 level is a key level uh from last year, so well have to see if this holds right here. That was the low in july of 2021 and price broke down. Ultimately, to that level and bounce, this is a very different look here that were looking at right now today, a lot of different things led into the sell off today in crypto the whole tara luna situation with the algorithmic stable coin, ust u.s terra that lost its Peg to the dollar meaning its value. If we look at that right now. Well, i dont have ust lets see if its right here, ust um in crypto, so lets look at that uh. So you can see. Whats happened right there.
Ust has really dropped right now. Down to 0.84, it is really losing its peg and then dokwan with luna bought bitcoin in order to stabilize and its not working so luna is collapsing as well. Lets look at luna on us dollar. Here we go theres lunar right. There is continuing to collapse because of that whole um, ust problem, so thats, causing a lot of the capitulation in the market, a very difficult situation here, not sure how thats even legal, how you can print a coin um or print a token to buy bitcoin to Prop up a um, stable coin, just doesnt make any sense to me. I know theres a lot of debate in the space about it, but now youre starting to see the effects of what happens when you do these types of things. This is part of the reason. Bitcoin is dropping as much as its dropping and its continuing to drop as we speak, trying to find a little bit of a bottom here right now, so lets take a look at um, the stable coin market or uh the altcoin market. Look at some of the top all coins ethereum continuing down towards these lower levels. Looking to break this um support level here of the last recent lows that we had of 2100 but again that july low is 1700, so ethereum is probably going to come down and check this low here you know if it can break below 2100, it will probably Go down and check 1700 thats, the last line of defense before you know, pre pandemic lows right here: thats back in this area would be around 280, so march of 2020.
Ethereum dropped all the way down to about 97 before that it was 311 and if it dropped 90 80, like all coins, do a lot of times puts it around four or five hundred bucks, so thats the potential downside risk for ethereum. If you look at the total altcoin market, uh total three just total all coins and if you go back to the 2018 market, all coins dropped to their low 92 percent. So if you look at an altcoin like ethereum altcoin is anything thats, not bitcoin, and you go down 92 percent. That puts you around uh, 350, 400 somewhere in that range, so thats the potential risk that were looking at heres avalanche same thing here: pre pandemic levels. You know uh, but if you just go with that 90 drop from the peaks um that a lot of people just didnt think could happen. You know its back down to about 13 bucks, so it seems like everything, is unwinding and dropping back to those pre pandemic. Lows, like weve, been tracking solana right here in its last little level of support, and if you look at 90 down for solana, uh you get back down to these ranges here of about twenty four twenty five dollars. So all coins – you know matic same thing – lets take a look at manic. Well, take a look at cardano next 90 back down to about 20 something cents, cardano uh same thing here drops back down into 90, puts it down around 20 something so you can do that over and over with some of these coins.
A lot of these coins are newer, like proppy, for instance, propertys been holding up relatively well uh in light of everything else. Thats going on um lets see crypto.com thats, another relatively newer, ish uh coin. Where did crypto.com go um there we go right here. Crypto.Com is dropping down and again it has some pretty low levels as well, and then, of course, we have. The infamous dogecoin seems to be hanging on pretty good to this level here, as uh lets see how far thats come down so far, dogecoin has already come down about 85, so dogecoin is almost to its 90 range, which is around 6 cents for dogecoin. Shib is dropping back down to its beginnings and right now is down 83, so 90 puts it at a bunch of zeros. You know six sixty three six! You know six. Ninety seven one two! You know, after a bunch of zeros, so thats, where you know it puts the shield uh ship coin. So these are the things here that i am looking at right now. Well have to see what happens tomorrow. Ideally, you would think that there would be a nice little bounce right about now. Uh on bitcoin price seems to be consolidating a lot of the all coins. Things are kind of holding up right here, so this will be a good level of bounce. Maybe you get turn around tuesday tomorrow, you know, get a nice little rebound out of here: uh, maybe a 10 20 bounce before more continuation, so thats.
What im looking for in the markets tomorrow may not happen, but i am on the lookout for a bounce tomorrow. Uh so hopefully well have a turnaround tuesday, green day for the next couple of days before we get any more potential downside, but theres a lot of action going on with that tara, luna situation, theyre liquidating bitcoin, left and right so thats. An interesting, interesting situation to watch keep your eyes peeled on that ill, be back tomorrow with gareth soloway to talk about his twenty thousand dollar price prediction, see where hes at uh got a another one with uh tony edwards thinking crypto on wednesday, see what hes looking At so big week for crypto stay tuned, i will be back on the next video and uh hang in there.