So definitely stick around first of all, giving you a quick update on the us stock market today. This right here is the nasdaq 100 index on the daily time frame and, as you can clearly see on this chart were actually seeing. The nasdaq 100 index ends this week very strong, which of course helps crypto prices in the shorter term. If were seeing bullish price action in the short term for the stock market, but keep in mind when youre talking about the larger trend here, obviously were still well and truly in this larger bearish trend. So for now this is just a shorter term bounce in the stock markets and, technically speaking, in order to see a bullish trend in the price action here on the daily chart. We need to see higher highs and higher lows, but obviously that has not happened. As of right now and keep in mind in around two and a half weeks from now, we have new inflation data coming in which will show us what inflation was during june. And when we get that inflation data in around two and a half weeks. That would be very important because it would likely tell us what the fed would do in the next fed meeting and obviously ill be sure to keep you updated on this channel in these videos every single day, but now getting into the bitcoin parts of this video. This right here is the 12 hour bitcoin to us dollar chart and obviously were still playing out that bullish, divergence and bullish cross in the macd, and obviously this choppy sideways price action that weve seen over the past five to six days is pretty much exactly what Ive been saying were most likely to see due to this bullish divergence and also that bullish cross in the macd, based on what we saw around a month ago and if youre new to the channel – and you want more information about this chart right here – check out Some of my recent videos here on the channel where i went into a little bit more detail about this 12 hour bitcoin charts, but if youre taking a look at the four hour, bitcoin charts.

Like i said yesterday, we do have this inverse head and shoulders pattern that is technically forming and over the past few hours, weve actually seen a slight attempt of a breakout, but nothing really significant and honestly, at the time of recording this video, we really have no Confirmation no proper confirmation of a breakout for bitcoin above this neckline and by the way this neckline is coming into play at around 21.1k to 21.2 k and in order to confirm a breakout above this neckline out of this inverse header shoulders pattern. We need to at least see a four hour candle close, but if we could see a couple four hour, candle closes above that neckline. That would be even better, and i would also be keeping an eye on the volume indicator and right now, at least on the binance exchange. Just here were not really seeing any significant spike in volume suggesting a breakout to the upside. Instead, the volume is actually still declining, so this just means we havent really seen a confirmed breakouts for the bitcoin for our chart, above this neckline, at least at the time of recording this video. And aside from that, if you want more confirmations for a breakout to the upside id, also be looking towards this previous high, which is coming into play at around 21.7 k, because obviously, if we form a higher high, that technically sets us up for a short term. Bullish trend but, of course, the larger trend on the daily or the weekly chart, for example, is still a downtrend just keep in mind that this is only talking about the shorter term trend, but once again, right now, at the time of recording in this video, we Havent confirmed a break above this previous high, at least just yet, and another confirmation method we can use from time to time is a possible retest.

Basically, after we see a breakout if the price comes back down towards the neckline and confirms it as new support, that gives us extra confirmation for a breakout to the upside, but keep in mind. We dont always see a retest. So in some cases we might see a breakout and we might see a slight correction along the way, but not necessarily re test the neckline all the time so thats just something else to consider moving forward as well, and in case you missed my last video on The channel the technical price target for this inverse seven shortness pattern. If we confirm a breakout above this neckline, like ive, been saying, then thatll put the price target at around 26 000 per bitcoin, which, from the point of the breakout at this neckline to that price target, is around a 23 to 24 gain in the bitcoin price. So obviously, we could end up making some good profits from that move if that does end up playing out, and if we do see that confirmation that we need, which we havent seen at the moment and now, an important on chain metric for bitcoin that i havent Covered for a while now is the amount of bitcoin that is sitting on exchanges and, if youre looking at the last one month worth of action here in this on chain metric, we can clearly see that a lot of bitcoin has left exchanges over the past one Month and if youre looking at the amount of bitcoin that has left exchanges over the past one month, that has been around a hundred thousand bitcoin leave exchanges in just one single month, which is of course equivalent to over two billion us dollars at todays, bitcoin price And obviously that is not a small amount of bitcoin.

A hundred thousand bitcoin leaving exchanges in just one month is a big deal, especially considering the limited supply of bitcoin on exchanges already and in fact, right now, as im recording this video theres around 2.4 million bitcoin sitting on exchanges altogether. That is the total amount of bitcoin on exchanges, and that just shows how significant the bitcoin outflows from exchanges have been, especially over the past one month, because obviously, if weve seen a hundred thousand bitcoin leave exchanges in just one month and theres, only 2.4 million bitcoin On exchanges, then, in around two years from now at this current rate, exchanges will completely run out of bitcoin altogether and remember. In less than two years, we have the next bitcoin, halving in early 2024, where the amount of bitcoin being mined gets cut in half while were seeing billions of dollars worth of bitcoin leave exchanges and go into cold storage, so essentially the liquid supply of bitcoin. The available supply of bitcoin is becoming scarcer and scarcer, despite the price going down now. What is very interesting is if youre, taking a look at this exact same metric over the exact same time period, but for ethereum were actually seeing pretty much the exact opposite. So this chart right here shows the amount of ethereum sitting on exchanges each day over the past one month and in fact, over the past one month, weve seen around 677 000 ethereum move on to exchanges in just one month, which is equivalent to around 800 million Us dollars at todays ethereum price, and you might be wondering how could this be if a lot of bitcoin is leaving exchanges? How is a lot of ethereum moving on to exchanges? It doesnt make much sense and the answer to that could be two possible answers or a mix of those two.

First of all its possible. We could see more ethereum getting deposited onto exchanges, because people holding ethereum might be more bearish on ethereum compared to bitcoin, because when you send crypto out of a cold wallet onto an exchange, youre most likely going to sell that crypto. But another very likely answer as to why were seeing a lot of ethereum enter onto exchanges is because over the past one month, pretty much ever since the lunar collapse, but especially in recent weeks, weve actually seen quite a significant collapse in the d5 space. Due to a lot of massive loans in d5, getting liquidated because of lower prices – and i wont go too much into detail about d5 in this video, because that is a whole nother video to make. But long story short were seeing a lot of debt. A lot of leverage getting squeezed out of the market when were seeing downside price action, because the more downtime price action we see, the more loans in d fight gets liquidated and when those d5 loans get liquidated, the collateral in most cases gets sold onto the markets And obviously ethereum being the leading smart contract platform is a big part of d fire. So if theres a lot of loans getting liquidated in d5 with ethereum as the collateral, then due to those loans, getting liquidated were now potentially seeing a lot of that aetherium. That was collateral in those loans moving onto exchanges to be sold.

So the answer as to why were seeing a lot of ethereum enter onto exchanges, especially over the past one month, is most likely one of those two possible answers or more likely a mix of those. Two and just giving you a quick update on the ethereum to your dollar chart on the weekly time frame and, as you can see, right here, were still playing out about from that 38.2 fibonacci level, which is coming in at around 1050 and at the time of Recording this video weve got a little over two days until we see the next weekly candle close and at this stage were looking like its possible. We could see a green week after 11 consecutive weeks of red and to my knowledge, that is the most amount of red weeks consecutively that we have seen for ethereum. So that really says just how crazy this time in the market is and of course, were still sitting in oversold territories in the weekly ethereum rsi, which has only happened just one other time in ethereums entire price history, which was at the end of the 2018, bear Market and if youre zooming into the 12 hour ethereum to yours, dollar, chance were still seeing this bullish divergence play out quite nicely over the past five to six days or so, and this also aligns with that bullish cost that we saw around five days ago. In the 12 hour ethereum macd and, of course this is all very similar to what we saw roughly around one month ago and if you zoom into the four hour chart for ethereum, as you can see here, we have already seen a breakout to the upside.

Above. This neckline for the price of ethereum in terms of this inverse head and shoulders pattern. This neckline by the way, is coming into play at around 1 150 and once again, this uses all the same confirmation methods as what i said for bitcoin earlier in the video, and you can see right here on the charts that we have already seen three four Hour, candle closes at the time of recording this video above the neckline, so that means we already have some confirmation for this breakout to the upside. We dont have a lot of confirmation, but it is some confirmation and what weve also seen is a break above this previous high that we set around three to four days ago, coming in at around 1.2 k and technically speaking, according to this inverse header shortest pattern. The technical price target is sitting at around one and a half thousand dollars per ethereum, which, from the point of the breakout to that price target, is around a 33 gain for ethereum and at the current price. At the time of recording this video to that price target, that is still another 26 gain if it does play out. But it is important to mention that, even though that is the technical price target for this inverse header shoulders, pattern were still exposed to other levels of resistance along the way. For example, these highs that we set in place around one and a half weeks ago.

Those are coming into play at around 1250, approximately and looking towards the tops of the wicks theyre coming in at around 1280. So in that small price range just there, we could be due for a bit of short term resistance, and i covered my short term trading strategy around these inverse headed shortest patterns in yesterdays video. So if you missed that video definitely check it out if you want to know my trading strategy around these patterns, but adding to that what i forgot to mention in yesterdays video is the fact that i dont enter an exit trade. All in one go. I average in in most cases an average out in most cases, so for an example of my trading strategy lets just say: i enter a trade when we see a breakout above resistance, but only with a much smaller amount, because at that stage we dont have a Lot of confirmation, for example, just a four hour candle close and then, if we end up seeing more confirmation, such as a spike in volume or a possible retest of this previous line of resistance, and if we potentially flip it into new support, then in that case, In those situations personally, i would slowly add to that position, as we potentially see more confirmations and on the flip side, when it comes to exits a position like this. Personally, i did not wait for an exact price to exit the entire trade, because that is, of course, very risky thats, like waiting for the exact bottom to go all in or the exact bull market top to sell everything once again, its very risky.

So instead, i simply break it up into different levels, and i look at levels of resistance where we could possibly turn around at, for example, this level that i just mentioned. In this example, i would potentially take a small amount of profits off the table in that trade at that level of resistance or any other potential level of resistance, and basically, as we get closer and closer towards the price target, i aim to average out of the Trade, the closer we get to the price target, but it is important to mention two things. First of all, that is not financial advice, im, simply telling you what i personally do with my own money and what you do with your money is completely up to you and, second of all, the other part of my short term trading strategy when it comes to Breakout trades like this is in my yesterdays video, so in my last video on the channel. So what i said in this video is not my entire strategy altogether. Once again, you need to watch the two videos, and also i want to make it clear that this is just a shorter term trading strategy when it comes to these shorter term movements and my longer term. Investing strategy is something separate from my trading strategy and going back to that level of resistance coming into play at around 1250 to 1280, its actually very important for ethereum to break above that level, because if we dont then technically speaking here on the 4 hour chart Ethereum does run the risk of potentially forming a rising wedge pattern, which is a bearish pattern, so that would contradict the inverse head and shoulders pattern.

But once again, that would require a rejection from this level of resistance that i just mentioned earlier. And if you found this video useful, you should definitely check out this video popping up right here on your screen, because this video right here shows you how you can keep making money in crypto, even if prices are going down but anyway. That is everything that i have to say for today.

https://www.youtube.com/watch?v=3qW4Vew2nqQ