Bitcoin In Trouble As Crypto Pain Hits All Time High
This is no doubt one of the worst investment experiences of their life. Every single trader and investor has battle scars and the ones who make it are the ones that fight through and can learn from their mistakes. Its from these points forward that we get a long period of just quiet, market action, the pros stick around the old rookies that were burnt, dont, come back and then fresh blood eventually comes to the market, its only those who stick around learn from their mistakes and Keep going theyre the ones that make it next time. Most old queens have been completely crushed breaking through their significant support levels. Bitcoin and ethereum are holding up a little bit better but theyre on the brink of also a big picture collapse. Weve seen no bullish confirmation, despite the small pieces of hope that have been sprinkled on the chart throughout the way. So this video were going to be taking a look at what we need to see for some bullish confirmation, how bad things can get and what needs to happen before the price can stabilize bitcoins made a new yearly low, whereas ethereum is still holding just above now. Its the short sellers, the people profiting from the decline theyre still clearly in control and as that knife continues to fall, all the buyers continue to slice their hands. So in this, video were going to be taking a look at both sides of the market to identify the next support and resistance levels.
Im, not a financial advisor, so everything i say is general information and for education and entertainment purposes. Only trading and investing is incredibly risky, so you must always do your own. Due diligence seek your own professional help and guidance before making any decision in the market and past results are not indicative of future performance. Im going to get to bitcoin on the daily and also intraday time frames, but first well take a look at the bitcoin dominance to get a bit of a top down overview of where the markets at now. Typically speaking, when this charts going up, we see crypto getting absolutely crunched when its coming down. We see an old queen season up crypto crash down old queen season. Now the difference is in this last little altcoin season, at least what ive got on the chart here. We werent seeing money flow into all the traditional alts. It was flowing into stable coins, which is why we still saw market share come away from bitcoin. Our ta ended up working out perfectly, though, when we got a double bottom on the 50 level, and then this chart just started to skyrocket and, of course, weve been seeing crypto getting absolutely crunched its in these times in the market that bitcoin really regains its throne. As king, because, obviously its far more stable than the rest of the old queen market – and it just does continue to take that market share despite money flushing out of the space.
So now that this charts put in a new high on the bitcoin dominance, we just have to expect that perhaps were going to continue to see bitcoin take market share away from the alts and more pain in crypto, its only just broken out in todays session. As you can see here, weve got that big green bar, just breaking those previous tops and obviously bitcoin, is taking a heap of market share away from alts. Despite everything falling, you can see bitcoins down by about six percent and then everything else is double digits heading. On to mid teens into the 20s and unfortunately for luna down 75 percent, so in tough times when we do see these particular patterns on the bitcoin dominance start to play out, they are warning signals and the warnings were there and obviously were now getting our crypto Crunch so wheres, this pain, gon na end lets go back to bitcoin to really pinpoint the next kind of support and resistance levels. Now that it has broken back into a new yearly low, so marked on the chart is the low from 2021 coming in at just around 28 000 bucks. Now, obviously, we just touched that in yesterdays session todays session has already broken. Through now i did have a bit of hopium in my previous video were looking at. A large amount of volume come into the market and the price start to stabilize, but there was never any confirmation and well get to that on the intraday time frames as well.
Confirmation is king. We want to be looking at trends, well, be looking at our technical analysis patterns, but then confirmation is what really seals the deal. So, despite there being a huge amount of volume which had to be buying coming into the market this time around, it was clearly shorts. Taking profits as opposed to big picture whales buying up, although if they were buying up – and they most certainly were some whales buying in at that volume that was selling out when theres no follow through with momentum. Now that analysis sits fine with me, but obviously everybody has to prove these things to themselves. No matter what thing you hear on youtube, or whatever the case may be, you hear some kind of technique, technical analysis tool. You need to go away and prove it to yourself, otherwise, its never going to really make sense. But here we are the market didnt hold up from where it was that big volume came in it only just paused and now were dumping once again. So we do have that previous low from 2021 that could still act as a bit of support. Now we do have a little bit of hopium and then weve got you know the real deal of whats actually happening so the opium that i can see on the chart right now is. We still do have a significant amount of volume and were still just holding up around the low from last year.
Obviously, if we do continue to close below there on our intraday time frames four hour eight hour, whatever the case may be, but if we certainly close below there on the daily and weekly charts, i think were going to be in for continued pain. So we are looking at a very macro support level being the yearly low from last year, which was obviously a fair amount of support around that particular price. Its going to be the big picture closes that really put this market in trouble, so small scout were going to see some continued pain, bigger picture. If we do bounce up towards the end of the week and then close back above thats going to be another story altogether, but we cant trade next weeks data today we have to see what the markets actually doing. So, although weve got that big picture, volume coming in were still not seeing any support and were obviously closing low on the bar so far, so i always sprinkle a little bit of hope in with where the markets at based on some support and resistance levels and The final bit of hopium ive got is: we are a consecutive number of days down without putting in a new daily high for now, eight bars granted todays bar isnt complete yet, but it does look like were going to be getting another lower high. Now what that means for me when we do see a consecutive number of days up or down often it can be calling the end of a major swing thats what we saw at the top – and i covered that very closely on my channel.
We saw something like nine days up consecutively that obviously called the top of this particular swing. We just do see it over and again when we do just have multiple consecutive days and it just ends up being a bit of an exhaust move. So thats the final bit of hopium ive got. We cant trade that today im not buying that today, but what you can see is we are just getting into that oversold exhaust move territory, but the markets still closing low. We dont have that support, yet just something to keep an eye on jumping down to the four hour. Now we can see, we never had that confirmation. I was hopeful back here. We had some pretty massive volume relative to what wed seen previously and obviously now weve got some even bigger volume coming into the market, but the slide off continues, but in terms of confirmation, weve got one four hour bar up and then that bar was never broken. The market just continued to trend downwards kind of wedge out a little bit and then just continue to break down, so weve still got no accumulation, no support coming into the market. Yet bitcoin is now closing below the yearly low, at least on the intraday time frames. So the trends are clearly down markets sliding off it just does need to find some kind of equilibrium before it can base out and obviously return so intraday theres really no hope to be looking out for at least as of right.
Now we can see were just at the bottom end of the chart. Theres no previous levels of you know support and resistance to be looking out for, especially because its broken down from last years low. So it really just doesnt need to base out wherever that ends up being. It could even bounce from here and then base at a higher level. The sellers are still clearly in control and theyre going to remain in control until obviously we do get some kind of bounce and consolidation. So at least for me thats what im looking out for to get some stabilization in price. We had some kind of early signs, but we didnt get that confirmation. Now we want to see whether marketing can kind of base out consolidate a little bit more and get some higher lows in. We had no higher lows last time. You know we had this temporary little one, but we also had a lower high, which wedged the market out so im going to continue stalking for the next areas of consolidation, higher lows and breakouts. To get me thinking about the market. Turning back up again, things in motion tend to stay in motion until theres a stronger opposing force and, at the moment, theres just no stronger opposing by force at the moment. Now it could change at any time, but you know the signals im looking at for in terms of consolidation, higher lows and breakouts thats going to be the first thing i need to see on the intraday time frames before thinking about the bigger picture trends.
Also. Turning back up now, theres still loads of pain being felt in the market right now, but its the big picture macro levels that im paying closest attention to the next price point for bitcoin is that 20 grand being the previous cycle high from 2017. Now i keep saying i dont think its going to go down that far based on the ta that i do, but the market doesnt care what i think and i cant be attached to that view. Our account balance is like our financial life and im, not suicide bombing on any particular move that i make in the market. That way, when i get it wrong, im not going to be wiped out of the game, its all about managing risk and with such a severe slide in the market. This big picture decline that weve seen its safe to say that were not going to be recovering to new all time highs anytime soon. I think its really going to take a while for this pain to wash away fresh blood to come back into the market, consolidate and then break out again, but just like before the last time, crypto or any market breaks away its the quiet periods. That are really the best times to be getting active and involved. So as long as everyones taking care of their financial health theyre, not suicide bombing on any particular move. As long as everyone remembers to manage their risk and follow their plans and then keep making corrections.
When necessary, thats the only way, i think anybody really makes it thats it for me today. I hope everyones still taking some time away from the screens to live their life because theres a lot more to life than just charts trading and investing stay, happy, healthy and well and until next time ill catch.