So in just a moment, ill be talking more about that and what it means for bitcoin moving forward ill, also be covering other bitcoin charts. Later in this video and, of course, ethereum as always later in the video, so definitely stick around. First of all, taking a quick look at the us stock market today. This right here is the nasdaq 100 index on the daily time frame, and so far today we havent seen a lot of action and at the time of recording this video todays trading day in the nasdaq 100 index, is a green day, but only a slight green Day – and this is also transferred over to the daily bitcoin chart – we see a very similar thing right here. Obviously, amidst this massive downtrend specifically today, we havent really seen any significant moves in the bitcoin price so far, and at the time of recording this video todays daily candle is currently a green daily candle like what were seeing in the stock markets. As you can see, these two markets are heavily correlated the majority of the time and now just giving you a quick update on the weekly bitcoin chart and right now were still holding above that massive level of support coming into play at around 20 000 per bitcoin, Which is based on the 2017 bull market top and, as you can see right here at the time of recording this video, the bitcoin price is currently trading below the 200 week moving average, which is this red line, and that is coming into play at just above 22 000 per bitcoin, and then this blue line is the 300 week moving average and that is coming into play at around 17 000 per bitcoin, approximately and weve only ever seen, one touch point along the 300 week moving average.

This blue line once again, which was the bottom of the march 2020 crash, but other than the bottom of the march 2020 crash, pretty much every other significant bitcoin bottom, for example, the 2018 bear market bottom or the 2014 bear market bottom, usually bottoms out around that 200 week moving average, but sometimes weeks below the 200 week, moving average like what we saw back in 2014 2015 and also like what we saw in march 2020 and while were here on the weekly bitcoin chart. Obviously the weekly bitcoin rsi is still well and truly into oversold territories, as ive been saying over the past few days and if youre going off pretty much the last decade of bitcoin price history. The times where we see the bitcoin rsi on the weekly chart enter into oversold territories usually come pretty close to at least some sort of major bottom. But with that being said, theres another bitcoin chart that tells us were potentially getting very close to the bitcoin bottom. But we might not be there just yet, and that is of course this chart right here, which is actually an on chain bitcoin chart, as i discussed in yesterdays bitcoin update video, because the indicators on this chart are derived from the bitcoin blockchain. They are not derived from the bitcoin price, like the moving averages. I just talked about on the other chart. Now, once again, i went into more detail about this chart right here in my last video, so i wont spend too much time on it in this video.

So if you missed my last, video definitely check that one out, but basically how this chart works is when these two lines cross over when the pink line actually crosses above the orange line. That usually means were at the bitcoin bear market bottom. According to the last two significant bitcoin bear markets, the 2014 bear market and the 2018 bear markets. You can clearly see that each of these previous bear market bottoms both times here. We actually had these two lines cross over and the bear marker bottom actually came into play right around where the lines were sitting at and right now. These two lines are currently sitting at around seventeen thousand dollars per bitcoin, approximately, which means its possible. We could see some sort of bitcoin bottom roughly around seventeen thousand. If we break that twenty thousand dollar level of support, but keep in mind, we have not seen these two lines cross over just yet, which means according to this chart and according to bitcoins previous price history, we could still have a little while longer before we reach The bitcoin bottom, when eventually these two lines cross over, but you can clearly see that these two lines are moving closer together, which means theyre, potentially getting much closer to the bitcoin bottom signal that were looking out for, but theyre not there. Just yet, and another important bitcoin on chain chart to pay attention to is this chart right here, which is bitcoins net unrealized losses and basically how this metric works is if a bitcoin moves on the bitcoin blockchain at a price lower than when it last moved, then That would show up in this metric right here.

So, for example, lets just say: someone bought one bitcoin at 60, 000 per bitcoin and then they didnt move that bitcoin at all until a lower price and then more recently, when the price is lower, they moved that bitcoin again out of that wallet, maybe to sell It then, because of the fact that the bitcoin price is now lower than when they last moved it in that example. That would show up in this metric right here, which is the purple line, and so basically, as the name of this indicator, suggests net unrealized losses. It tries to calculate how much of the bitcoin supply is currently sitting in a loss from when that bitcoin last moved in percentage terms. So right now, this bitcoin on chain metric is currently sitting at around 0.5, which is around 50 percent, which basically means around 50 of the bitcoin supply. That moved recently is sitting in a loss from when it last moved. And if you take a look at the last time where this bitcoin on chain metric spiked up towards around 50, that was at the bottom of the march 2020 crash and, generally speaking, when we see a sharp spike in this on chain. Metric. That usually means were seeing some sort of capitulation that usually turns out to be a pretty good buying opportunity and the bigger the spike in this metric, the bigger the opportunity, but i want to make it clear that that is not financial advice.

Im simply telling you what this metric means for bitcoin and what has happened time and time again throughout bitcoins history and just giving you a quick update on the bitcoin order books across all of these exchanges and right now we still have a lot of buy orders. Coming into play at pretty much exactly twenty thousand dollars per bitcoin, which would be acting as major support at around that twenty thousand dollar level. As i talked about in yesterdays video once again and if youre looking at the short term bitcoin price action here on the four hour chart, you can clearly see that we do have strong support at around twenty thousand dollars per bitcoin. And just updating you on this. Four hour bitcoin bullish divergence that ive been talking about over the past few days and as i mentioned in yesterdays video, this bullish divergence is potentially already beginning to invalidate and right now we have formed one lower high in the four hour rsi, but so far at The time of recording in this video were still seeing higher lows in the four hour bitcoin rsi, which is good to see. But of course, this lower high does show some weakness starting to form in the four hour bitcoin rsi, which also shows some weakness in this bullish divergence. So i would not be expecting a massive pump in the bitcoin price due to this bullish divergence alone, because, first of all, a bullish, divergence just means were due to see reduced bearish momentum, which in most cases is mostly choppy sideways price action and over the past Few days, thats pretty much exactly what we have seen after this bullish divergence, but moving forward as this four hour bullish divergence is once again showing a bit of weakness, ill mostly be paying attention to that 20 000 level of support to see whether or not we Hold that level and almost the exact same thing can be said about ethereum against the us dollar here on the four hour chart as well, but unlike bitcoin, the four hour ethereum rsi has already drifted below this upper training line of support.

But at the time of recording this video, the four hour, ethereum rsi is still technically in a higher low structure and we have put in one lower high, which once again shows some weakness in this four hour: bullish divergence. So as of right now in the immediate short term, here on the four hour, charts for ethereum id mostly be expecting sideways price action like bitcoin, but once again ill be paying strong attention to our levels of support. Because, of course, if we begin to break our support, that is when we could see another leg to the downside and for ethereum we have major supports coming into play at just above a thousand dollars more specifically at around 1050, approximately because right at that ethereum price. We, of course, have the 38.2 fibonacci level coming into play and also, as ive covered in recent videos here on the channel and also on my twitter. So, by the way, if you dont, follow me on twitter definitely check that one out link in the description, but anyway, as ive been saying, theres, actually quite a lot of leverage built up in d5 and theres. A lot of liquidation prices coming into play for ethereum. At around 1 000 dollars per ethereum, so basically, if we see the price of ethereum start breaking below that one thousand dollar level of support that could trigger some liquidations happening for ethereum, which could continue an ethereum dump and obviously, in that scenario, that would be very Bearish for ethereum, which is why it is very important for ethereum to hold above that, one thousand dollar level of support and just giving you a quick update on the ethereum short positions on the before next exchange.

Right now, these positions are pretty much almost at all time, low levels and, in case youre new to the channel. This chart right here shows how much ethereum so essentially how much money is sitting in short positions. So if this chart goes down, it means a lot of money is flowing out of ethereum short positions, so basically whales are exiting their positions because were talking about hundreds of millions of dollars here. Meanwhile, this chart right here shows the percentage of ethereum short accounts on the buybit exchange. So, basically, instead of showing the amount of money in short positions, it shows us how many individual accounts are currently shorting ethereum compared to the amount of accounts longing ethereum and right now. The amount of accounts on buybit shorting ethereum are basically at all time or high levels, which means theres a lot of people shorting ethereum. Meanwhile, the big money has already left their short positions, so this is definitely something to keep in mind moving forward, because, usually, when we see a major spike in these ethereum shorts accounts on buybits, that usually means were somewhere near at least a short term bottom, like For example, back in january or the middle of last year, whereas the ethereum short positions on the bifinex exchange, which shows the amount of money sitting in those short positions when that other chart, spikes to the upside that usually means were getting close to some sort of Top and we could be due for another crash sometime soon, but interestingly right now, the shot positions across these two major exchanges are basically showing the exact opposite.

It shows that theres somewhat limited downside price action according to these leveraged short positions and speaking of these, by bit short positions right now, buybits actually hosting the biggest trading competition in the world, which you can find a link to in the description down below. And i actually have a team in this competition with 43 members currently and if our team places well in this competition, then each of our team members could potentially win a share in up to 8 million us dollars, which is the full prize pool for this year, And to join this team or find out more once again check out the first link in the description and the first link in the pinned comments, but i want to make it clear that this is not for complete beginners out there. This is for those of you who are more experienced in the market, know how markets move and no risk management, and if you want to know how to keep making profits in crypto, even if prices are going down, then check out this video popping up right here On your screen, because this video can help you do that, but anyway, that is everything that i have to say for today.