URGENT CRYPTO UPDATE: CELSIUS JUST DID THE UNTHINKABLE…
So if you are new to the channel guys make sure to subscribe and activate the bell, i am coming to you with an urgent update, so on the four hourly time frame. You can see that bitcoin did dip down to my blue box here, which i, its so old, this level that i didnt even change this to orange. Yet but we dipped into it and right now we are finding some relief, but the thing we need to talk about right now is of course celsius. Now i will say the broader market: nasdaq s, p 500 markets across the world are going down, but of course, celsius network is putting a lot of pressure into the crypto market. So the latest, when it comes to celsius network, is that they have a massive loan. They took out a massive loan of die, which is a stable coin and they put up uh, wrapped bitcoin as collateral. Now the liquidation for this position used to be at twenty three thousand dollars. Then it was at uh, twenty thousand dollars and now its down to eighteen thousand dollars, so what celsius are actually doing and its really interesting? You can see this on the chain right here is that they are adding more and more collateral to bring down the price of the liquidation. Now we dont have an official announcement from celsius right now, because yeah they havent said anything. So all we can do is just look at what has been happening here on the chain and what has been you know.
We can see some of their positions here and it seems like okay, so, first off, they are not able to have the people who want to redeem their crypto. They are not able to send that to the customers. This is why they halted withdrawals, okay, but what they are doing is that, instead of saying okay, look, we might be able to pay back 70 of the funds or 80 of the funds it seems like they are taking all of the funds they have. They are using that as collateral, and then they are borrowing stable coins right now in order to pay out the people who uh yeah, they need to pay out or whatever um, which is a big big risk. I mean this is not confirmed again. We dont have an official statement from them, but what we can see on the charter is that this liquidation price used to be at 23, then 20, now 18. But if they hit the liquidation price, which is just a couple of thousand dollars off, then they are going to lose everything on the chain here: 517 million dollars – okay, which is completely crazy, but this is the situation. This is what we see on the chain right now, so they are taking huge risk. It seems like again with the customer funds here and lets hope that celsius does not blow up, because if they do, you are going to have so much scrutiny. D5 is going to be, if not completely obliterated, definitely set back at three to five years.
At least you are going to have yeah massive implications of this and yeah celsius, trying to add collateral and lower the liquidation price, its like watching the ust peg, trying to be defended, which is completely insane now. One thing you also have to remember is uh. Like larry cermik said here, i dont think people realize how much of d5 is actually just celsius parking their clients money if they wind all of that out. Tbl will tank so badly. Also, a lot of prop funds and market makers borrow under collateralized from them. The impact would be massive and also, if that wasnt enough lets, look at whats just inside. So if you look at the usdd, which is a stable coin, you can see that the peg is right now, not exactly at one dollar, but this started to destabilize here. It was actually down at 98 cents here, just like you saw with ust. It started like 98 97, but it never regained its peg and justin sun posted this. The founder of tron, which is the yeah protocol for usdd funding rate of shorting trx on binance, is negative. So what he wanted to do is, you know, buy up a lot of tron, so the shorters would get short squeezed, which yeah its really interesting to say from a founder here, but this is what he said and yeah. This is crypto guys. This is completely insane, and on top of that we have even more fun so micro strategy.
As you know, they hold a lot of bitcoin, but one thing that they did is they took out a loan against their bitcoin to buy more bitcoin and, as reported here uh, there seems to be a liquidation price and if bitcoin price reaches twenty one thousand dollars, The company will be in the worst situation to potentially have that margin called now, of course, microstrategy michael sailor. They have a lot of money, so um this was, you know, talked about when bitcoin was like 30k or so, and that they are of course, able to add more margin, but im just telling you like. This is also contributing to a lot of the fud right. Now so how about myself, of course, crypto? We are not seeing a good day today. I am down on my trades, but, like ive been saying like i was expecting us to go sideways. I was expecting us to go sideways and you know um consolidate to the downside, so i was prepared for us not reaching all time highs anytime soon, but for this, of course, this um yeah this happens in crypto, but um i cant say i was prepared for A massive dump in with this kind of magnitude. Now what i will say also is um that we are potentially hitting the 21 uh ema. So if i go to the weekly time frame here, lets see sorry, not the 21 ema but the um yeah 200 week.
Moving average – and this is an important level you can see it held us right here – it held us right here and we right now have hit it as well or very close to it. So this has been holding in every cycle. In every occasion we have gone down here we havent closed below it, so we are at massive support guys, but was i wrong in my thesis that i didnt think that uh bitcoin would go below um the vicinity of the previous um bottom right? Here? I would say yes, i was wrong. Look. We are right now from from this previous bottom. We are already down 10 from that. So yes, i was wrong in that, but its just too much right now. Bitcoin cannot take this its too a liquid uh. You have the markets going down. You have the entire markets across the world going down, you have uh luna crashing. You have celsius now crashing. You have too much uncertainty, so yeah. This is just the situation. This is the reality of the situation and yeah lets hope that celsius do not get liquidated on this position, but i will keep you updated guys.