URGENT BITCOIN UPDATE! CRYPTO IS AT A CRITICAL POINT
Why are we seeing bitcoin and luna specifically go down right now? Im going to give you everything you need to know right now and uh yeah. What a crazy day yesterday welcome back everybody. My name is cristiano, bringing you cryptocurrency videos every day, teaching you how to make money in this market. If youre new to the channel make sure to subscribe and activate the bell right now and just like i said yesterday – was absolutely wild: not only did bitcoin go down, the entire crypto market went down and look at this luna is down just this week. 61. Now this is not a coin that is, you know, on page 250, over on coin gecko. This is one of the largest crypto protocols out there and for this to be down 61. That is absolutely insane. Of course, you also have other coins. You have a coin down: 40 percent. You have uh yeah trx is actually up here, so thats pretty interesting. You have steppen uh down uh 40 as well, so yeah just blood across the board here guys. So what do we need to talk about today? Well, the first thing we need to talk about is that, finally, we did reach the 30 000 and bitcoin is expecting exactly or behaving exactly as expected. Here we did go down, we hit this level and we did see a pretty nice bounce. Here i mean were up seven percent since since hitting this level, but we do have this resistance here at thirty three thousand and fifty four dollars now.
Why is bitcoin trending now? Why is bitcoin going down? Well, of course, some of it has to do with the traditional markets going down. That is definitely one thing, but theres a lot of fun in the market right now and im going to talk about that in a bit, but just know this. We are right now below the uh long term, red line. Now i have circled you know, as ive been talking about the last times we have been below this level. We do have these steel circles. This was the bitfenix hack, the first bitfinex hack, second big bit for next hack. This was the kovit crash and i did tell you that yeah in order for us to close a candle and really start going down below this red line. I think its most likely going to take a black swan event similar to what you saw during these three other occasions, and that is exactly what happened yesterday and today guys. So what you need to know right now is that one of the largest protocols luna, is under enormous pressure, its under pressure from people trying to destroy this project. So what has happened? Well, terra is the um kind of safety mechanism for the ust stablecoin. So usd is one of the largest stable coins. The market cap is 16 billion dollars right now, and you can see that this is not really a stable coin anymore. This is not holding its one dollar peg and you can see that it has been going down.
It actually at one point went all the way down to 67 cents here, uh this night just a couple of hours ago. This is causing a lot of selling pressure on luna as well, because remember, luna is the safety mechanism for that stable coin. Now they also, and by them i mean, do quan the founder of luna and the luna foundation. They did buy bitcoin back in uh. I think it was december, or so they have been continuously buying bitcoin to also protect the peg, because you know if you are going to have something like luna protect, uh terra usd well luna is very volatile, so this is why they started to buy bitcoin. Well guess what they have emptied that bitcoin wallet so far: they have transferred the bitcoin over to binance, gemini and other exchanges in order to stabilize the terra usd price, so this cost enormous fud in the markets that they were going to. You know dump all of these bitcoin in one go now. Luckily, what they have said is that uh very little of this has been spent, but its currently being used to buy usd to protect that peg. So you do have a couple of different things. You do have malicious actors, of course, trying to destroy the luna project. You do have a lot of fun. You do have someone market selling a lot of luna, they did it right as the bitcoin or sorry the traditional markets were going down.
So when there was already panic in the market, they, you know dumped a lot of usd to try to get the peg to get eradicated which they actually managed to do now. The problem here is that dokuan and the luna foundation, as they have said here, they are deploying more capital, steady lats. So the thing is: did they? You know, sell all of that bitcoin. They said that they didnt do that, but they have been trying to protect the peg here at, as you can see 0.97. So they try to protect it right here during the weekend and then it fell down and they tried to protect the peg here at 94 cents, so 94 cents still it dropped even lower. So at this point its like okay, just let the market do its thing. Um, if people want to sell ust, let them sell usd better. You then, after a while use the bitcoin use the luna to try to get the peg back to normal, because right now, when theres so much panic in the market and as you can see here on anchor, which is the number one protocol where youre using usd Actually um this had deposit of 15 billion dollars just a couple of days ago. I think, and yesterday this was at nine billion dollars right now, its down to 6.5. So a lot of people are, you know, withdrawing their ust and selling it. So if theyre gon na do it anyway, let them sell and then its better to use the funds to protect or to get the peg back to one dollar after people have finished selling.
Because for me i mean theres no point in selling here down at 67 cents um. This is you know, we will see you guys. This can be a death spiral for luna. Definitely because, as people are redeeming terra usd ust for luna, then they are most likely. Also selling luna, so this is kind of the spiral down and then also if luna is going down. That means that terra needs to sell bitcoin as theyve seen here. Theyve transferred the bitcoin to the exchanges means that they need to sell the bitcoin at a much lower price and then bitcoin continues to go down because people are expecting bitcoin to be sold by luna. So you can see how this is just all a mess. Right now, but one thing i know for sure is that when you are acting in panic, when you are, you know very emotional, it could be time to just step back. You know let things run its course lets see if this peg is going to get stabilized at some point. If i had to make a bet, i would say its going to be stabilized at some point at least close to one dollar – maybe not exactly at one dollar, as it was previously here just a day ago or so or a couple of days ago. But i think its gon na be uh. You know much closer to one dollar than to like 90 cents or so so im hoping for that.
I am, you know, holding a huge amount of terra usd as well, so you know maybe its just opium. Maybe this is going to spiral down, i dont think so, theres just so much capital. You know uh protecting or not protecting, but investing in luna and um yeah. I dont think that theyre just going to let their luna back go down to zero, so uh yeah lets see guys. This is probably one of the craziest days. This, together with the covid crash, is one of the craziest days ive, seen just because of the systemic failure with terra, usd and luna, and what could potentially happen here if things really starts to go south even more so yeah um, but with that said guys, my Trade, at least is not doing as bad as luna its only down 50, so yeah we do. We do have that guys, but i mean were seeing that balance were seeing that bound exactly as we have been expecting here and lets just hope that um, this fud is not dragging things down even more, but i mean black swan events if we go any lower. Just a bigger buying opportunity for bitcoin: this is what im doing not financial advice. Very, very um, cautious. Here guys, you need to be very cautious. Do not over leverage. Do not you know, do anything stupid here, guys um, but uh, yeah thats. What i got for you today guys just wanted to talk about whats, going on oh and massive amounts of liquidations, also across the board here guys so uh, yeah, 1.
11 billion dollars wiped out in in leverage here so be careful with leverage be careful as as always Thanks so much for watching this video, i will keep you updated. Maybe i will do a video later today, as well um, in fact, in fact, um make sure to um. I will reveal that tomorrow so stick around until tomorrow. I will reveal something big guys, but thank you so much for watching this video.