Don’t Buy Bitcoin Until You Watch This! | When Will Altcoins & The Crypto Market Bottom?
Uh lets have a look. I have a lot of things to show you guys today theres something interesting that came across my path, which i actually didnt expect to find, but well cover that in a bit. I just want to zoom in on this chart over here. So weve entered nicely into this yellow box territory, as previously mentioned, which is pretty much anything within this zone over here underneath the 200 ema was a good area to be a long term investor accumulating. I said especially between these zones over here, which is the uh 200 purple ma and the 255 ma on the weekly chart. So i dont know whether were going to tag this. If price manages to come down to 19 hundred dollars, then we will tag that 255 ma. I still think its within the realm of possibilities and ill show you exactly why. So. Yesterday i made a post on my twitter and i said one interesting thing that im noticing is that some altcoins are holding up better than bitcoin. Does anybody know what to make of that or why that is now? Of course, i know that the bitcoin dominance came down, which is why obviously uh the altcoin started to push up, but the what? What was the reason that uh, the altcoins were not getting as hits as hard as what bitcoin was, while everybody anticipated that bitcoin is capitulating, so vinnie lingam uh, who i love and respect responded? He said that number one, the market doesnt expect a drop below 20k for btc and number two.
Some altcoin treasuries are actually greater than their market caps of the coins trading, so i said 0.2, so that means that they could technic prop up those prices until the next bull run. If need be, so i found that something very interesting uh, if, if that is the case, that theyre artificially holding up the price or buying it up using their treasuries, but i dont know i dont know – lets – have a look at the next tweet over here alcapo. He said here that altcoins are showing another corrective move. This is probably the wave four of the last wave five, so wave five of wave five is missing the one that forms all the divergences and the main targets are 40 lower, but they should be reached quickly. Now, im personally seeing the same thing as al kapoor, i dont believe that its over yet for the altcoins. I think that bitcoin might have a small push down, maybe just under 20k 19k in that region and ill show you that on the charts now. But when it comes to altcoins, i think that they havent capitulated. Yet and if you look at their candles, youll see what i mean ill go on to the alt queen candles in a little bit. But i put this in the daily newsletter today. So make sure that you subscribe to that. If you want the in depth explanation, but essentially i have the total crypto market cap on a five day chart with the rsi put on ive outlined the key liquidity zones, key levels and the trend line over here, and what youll notice is that uh, the total Market cap is by the way everything thats bitcoin, plus the altcoins.
For those of you are new here. You can see that uh. It came straight down into that liquidity zone. It hit literally to the t at 861 billion dollars and its kind of pushing up off there. It crossed that uh diagonal trend line as well and as soon as this key resistance was lost, price or at least the market cap started to shoot down now. Theres two things over here now one is: i am going to be on a lower high watch when this does come out of here. Weather comes out now or later, if theres going to be any sort of a push into this area here into the key horizontal and then possibly another push down further. But one thing that i found interesting and i was not expecting this – is the um. When you look at the rsi now, i marked it out on these verticals over here. So i marked the last time that the rsi actually came this low and fair enough on the 11th of january 2015, it marked the exact bottom as well as on the 12th of december 2018. It also marked the exact bottom, so we havent been this low. Pretty much uh weve only been this low twice historically, but many people use the rsi incorrectly just because the rsi has reached these levels does not mean that its suddenly just going to shoot out of here and that the bottom is in. As long as the rsi is trending down, it can continue all the way down to pretty much zero if need be so we, this is still a bearish sign until such time as you see the rsi start to spike up and that moving average starts to curve Back up uh, it still remains a bearish signal.
However, it is something of interest and i would say that the main liquidity zone, where the ultimate support lies, is actually going to be in this zone over here which matches up with bitcoin coming down to about 14k, which is going to bring your um total market Cap to about 450 billion now, when you look at total 2, its almost exactly the same picture, we just dont have as much history on the old coin, so i only have one vertical uh representation to compare to, and it was the same thing the last time. It was this low, it marked the 12th of december 2018 bottom and i can zoom into that just to give you a little bit of perspective over there, so that mark pretty much the exact bottom over there. Now. The difference over here is youll notice that we havent come and tagged this trendline over here, and this is what tells me that there is a possibility that all coins could still capitulate and have one more leg down. So, yes, we tag the liquidity zone over here, but if we had to have a quick flash crash of 28 that will be in line exactly of what al kapoor is mentioning and from from my side personally im targeting more on the major altcoins things like salon And things like ethereum or possibly another 20 to 30 percent down, which would tag that trend line. I would see that as a good area to jump in on long trades.
Now, with that being said, if you are a long term investor and youre looking to dollar cost average in historically speaking, this is going to be a good zone. The current levels that we add are fantastic. I mean the last time. I believed that we were at these. Prices was in december of 2020, which is a long time ago. Many people never thought wed, see these levels again, so it is still a decent zone to be getting in okay in other markets. Over here we have the dexi. I mentioned on yesterdays show that if we managed to cross even one tick above that its bullish continuation for the dixie – and that seems to be exactly what were getting here, so we wicked above that now we need to see how were going to close. If the weekly closes of baby, especially if it closes as a full body candle like the previous week, thats going to be extremely bullish, and then i would say that its probably not over yet for bitcoin and there could potentially be more downside now. Lets have a look quickly at the stock market, so yesterday theyre open with a big gap down, so you can see it closed over there new week, open big gap down straight down and we have a red market well see, of course, its going to be heavily Influenced by the fomc meeting, which is coming up tomorrow and then we have jerome powells usual uh conference afterwards, and then we need to see his tonality and how he speaks at that meeting so same story.
We do this pretty much every single month. Nothing has changed. Now, zooming in and looking at bitcoin uh, if we have a look at it just purely from a charting perspective, now the way that these capitulation candles typically happen is more similar to this over here. But you want to see a big wick, thats left behind and priced to very quickly rally out of there. This is not what weve had yet. I dont think that this is going to turn out into a full on capitulation, its seeming to me more likely that were going through a slow bleed, but the real demand zone lies between 17 and 20 000, so i would be heavily buying with any sort of Wicks into that area, i also had a look at the volume and, if i zoom out over here, lets just try and make that okay, i cant make it much bigger. But if you want to look in relation to the previous volumes that weve had, this is definitely on the lower side. I mean if i zoom in like this, you can see the wick that was left over here on the 12th of may, that 12th of may candle that even produced more volume than what we currently have so for capitulation candle. You want to see a massive volume spike and a big big sell off, and then you want price to be very quickly brought back up after that and when you look at certain altcoins, so lets go on to solana, for example.
Again, this is not what you would expect from altcoins to bottom. They dont they dont bottom like this. This is not. It is coming into the liquidity zone, but i would expect it to come in a little bit deeper than that and im willing to say that im wrong if it gets if its. If price starts to move and change, it will take it day by day im willing to say that maybe im wrong on that, but at the moment id only really feel safe going into bitcoin for the long term altcoins. I do think still have a little bit of a way to go and if i look at this chart over here on the four hour, you can see that all the emas are coming down, theyre, not as aggressively down yet as what they can get. So there may still be a little bit more pain. Possibly we could even just re test sweep back down around these lows. Then you have an opportunity to scoop some up, but when it comes to bottoms guys or at least buying bottoms, then you usually dont have too many chances in a capitulation type of environment. It happens very, very quickly, its a rapid sell off and you only have a couple of hours to get in and then price will v shape. Out of that, this is a little bit of a different scenario. The macroeconomic situation of the world right now is not what it used to be were going through quantitative tightening.
You have to bear in mind if i go on to this chart over here, that quantitative easing, which is the exact opposite started over here. So if we take our lets, just take our drawing tool, we started over here in march. Look at what quantitative easing did it did that entire move from from that area, all the way up, like straight vertical now were going through the opposite of that. So i really do think that this time is a little bit different. I know they said dont say this times different. They said every everyone says every cycle. This time is different. This time is different, but i really think this time is a little bit different and you should really respect your money. Uh as chad says, respect your money or it will find a new owner so thats about it from me guys. What you can do is please uh have a look in the description below if you just click on the description below and you come here, youll find my twitter, my instagram. I also have a buy, but referral link. If you do want to support me in any of the trades going forward, you can just click on that link over there and then also make sure that you smash the like and subscribe button below ill keep you all up to date on twitter and thats it From me guys, i will see you on tomorrows stream turn the volume down for this next video cheers.