Wow… This Chart Reveals Bitcoins Next Move
I am going to talk about the traditional markets, the long and the short terms, as well as some massive news. You need to pay attention to right now, so welcome back everybody. My name is christian, bringing you cryptocurrency videos every day, teaching you how to make money in this market. If youre new to the channel then make sure to subscribe and activate the bell right now and lets get into it guys so on the four hourly time frame, you can see that we are still going sideways. We are still struggling with actually approaching this orange box up here and definitely struggling with getting above it. So this is a major level of resistance, and if you watch my videos during the last couple of days, ive been saying that yes, it is nice that bitcoin is, you know pumping here its going up, but until we are broken above this orange box, i am Not going to enter into new bitcoin trades, because this is massive massive resistance. This is not only the orange box here, but this is also the 200 week moving average. So let me make this in a different color, so it is easier to see here we make this green okay. There we go so this green line here the 200 week moving average. You can see that uh. This is right here at 22, 500 as well. So just like this has never been broken down from until you know we broke down from it right here and so before that we hadnt really been broken breaking below this and enclosing below this level.
But for now we are going to meet this as resistance here. So that is why i am you, know cautious until we have broken above it now, it seems like its very close, and it is very close in dollar terms, but in terms of significance we are still you know we can still get rejected from this level. The good thing is that the traditional markets have been pumping really really hard here recently and why havent bitcoin been pumping as hard as the traditional markets, of course, because again this resistance level right here. So i would wait until we are above this level, but once we are above it i am definitely going to start positioning myself in some more trades for bitcoin and crypto overall, okay. Another thing i want to show you is just like i showed you yesterday. We have a little bit of a triangle structure here: okay, so something like that, potentially or if you want to draw it like from this level here, then it means that we have broken out of it already. Well, you can also see a little bit of an inverse head and shoulders here, so we have the first shoulder here. You have the head and you have the second shoulder there, so in that case we have also broken out of it, but just like i said this massive level at 22, 000 um 500 is massive resistance for bitcoin, so pay attention to that guys.
Im going to keep you updated, but traditional markets are going up and also we know that the um dumps weve been seeing it recently or we dont know, but i think that the dumps we have been seeing there recently they are overshooting to the downside. Now it doesnt mean that we, you know, have hit the absolute bottom, yet we can still go down and meet a similar level to where we are at right now. But nonetheless, i think that this general vicinity is going to be the bottom and also maybe we have seen the worst when it comes to the defaults and the companies being in solvent now cz binance did go out yesterday, just like i posted on twitter. He said that he thinks there are going to be. You know more uh downside for these crypto companies that more companies are going to come out and declare bankruptcy, but for now, hopefully we have seen the worst now i want to show you this chart. This is a crazy chart, but before we do that, dont forget that if you want to claim four thousand five hundred and thirty dollars make sure to use this link right here, its up to four thousand five hundred and thirty, and up to four 4500 over on Femax so make sure to take advantage of that, and also, if you do not already own a ledger, make sure to use my link right here. A ledger is the best hardware wallet.
This is something you need to be able to store your crypto safely, so make sure to get yourself a ledger if you do not own one yet so lets talk about this, and this is on the weekly time frame, and what you can see here is that, In every cycle we have, you know after the massive pump, the parabolic phase of the market. Weve always had this downward sloping resistance here now the first cycle – nah – maybe not so much second cycle. We did have this downward sloping resistance broke out of it, and that is when we really started to. You know, take off right here as well downward sloping resistance boom. Take off after that, and now we are starting to form this kind of resistance as well. So if this is true, then we might, you know, continue to check along here. We might have a pump up to 30 000 continuing to hit this, after which we break out of it and uh yeah. A new cycle begins, so that could potentially be somewhere in 2023, so were paying attention to that. I think this is a good looking chart. This is something we should pay attention to. I am going to keep you updated regarding this. So a couple of different news. I want to show you as well before we do that. Actually, how big is this drawdown in bitcoin and ethereum historically? Well, basically for ethereum, which is the um pink dot right here? This is basically as bad as it gets.
If you look at the historical drawdowns, so you can see that we have only had in history three occasions no two occasions where we have went further down compared to where we are at right now, so you can see that right here this is about. You know more than 80. This is maybe i dont know 90. This might be 92 93. I dont know um, but nonetheless i mean we are basically at all time lows compared to uh the dumps we have been seeing from the previous all time high for bitcoin. This is also the same. I mean we are at minus, i dont know 75 78, maybe uh weve had more. Drawdowns like this might be like 85 percent, so weve had more than where we are. We are at right now, but nonetheless it is still in the vicinity of the all time lows, meaning the biggest drawdowns weve ever seen in the history of bitcoin and ethereum. The s p 500 can still looking at the history here, go down a little bit further. So that is, you know the x factor here the uh thing to be cautious about. If s p 500 continues to go down. Well then we are most likely going to see. Bitcoin and ethereum also continue to go down, but let me know down in the comment section, but i just wanted to show you that this is something we can put into perspective. The drawdowns were seeing right now is definitely something that we do not usually see, and it is very severe.
Okay lets talk about this, so goldman sachs is trying to assemble or get together two billion dollars in order to buy assets from celsius network at a massive discount. Now is this good or bad? This is probably bad. I think that goldman sachs, i mean there could be two ways to to look at this either theyre just trying to take advantage of this opportunity, buy it at a discount and dump it into the market, make a quick profit or maybe there is something to this. So, as we know some entities, probably some specific entities – are behind this entire crypto collapse, meaning that they saw a vulnerability in luna to begin with. They crashed luna, which led into contagion for celsius which led into contagion for three hours capital, and so i mean if they want to enter crypto, they want to buy crypto. Of course, they are going to attack the uh attack vectors we had available, which well in hindsight luna was the biggest one. You know crash that make the market go down and buy at the discount, or they didnt have anything to do with that and theyre. Just seeing this as an opportunity to get into crypto more and buy more assets here, so this is very interesting uh. I know its a lot of speculation, of course, but uh, yes, very, very interesting. Indeed, now block five have raised their rates. Now we know that block five was bailed out by sbf and um ftx and yeah.
They are also in talks of actually acquiring a stake in block fight. I mean ftx and sam are in the process of acquiring stakes in block fight. Now they have raised the rates, which is very, very interesting because, of course, if they raise rates, we are probably going to see more inflows of money into block fi. But the question is: can we trust them? Well, i dont know i mean they were probably close to being insolvent just two weeks ago or one week ago and um yeah. If they got bailed out by ftx. What were the terms there and uh yeah? Maybe the danger for block fight is not over yet, and maybe they just want to raise the rates in order to get more funds into the platform because they are close to being insolvent or whatever. Now just speculation, but still this is something i am thinking about. Guys that is what i actually got for you today.