Bitcoin: Crypto Sell Off Starts! What Can Stop It? (Trap Update)
As for me, ive had a fantastic morning. Getting the sweat on spend time with loved ones got a good breakfast in. I hope. Youre doing the same thing: todays video im, extremely excited ive not even had a coffee, and it is 1 30 p.m. Bitcoin is the trap validated or invalidated. Ethereum merge, sell the news event crypto selling off. Well take a look at that in the charts. I know it can sound like a fun title, but dont worry were really just trying to understand the risk and reward preparing for our portfolios. As always id love to hear your comments in the comment section down below especially big thanks to yesterdays video as well. Some great comments there, so if you havent already smash up that subscribe button, i know 70 of you have so im talking just to the minority here and, of course, like the video up ill, also remind you at the end of the video, but thank you to You guys who are liking and subscribing even when youre already here, video after video after video, the big question that came up was around bitcoin and the invalidation of the signal, so is it invalidated, were looking at these pump traps, as we saw on yesterdays. Videos are too late. Is the trap happening that sort of thing? Okay, so yesterdays daily bar closed above the 50 level? 21. 870.. So for this video im, just going to say 21, 900 or just under 22 000 for some round numbers, you can see, we had one two three days getting up to that level.
It was really trying to test and break above it. Of course, there was previous resistance there. The 50 is an amazing tool. It helps me identify trends. It helps me understand whether were in a strong position or a weak position and, in this case were currently sitting in a strong position were in a were on a daily chart and were starting to push that a little bit higher. This is for bitcoin all right, but as for cryptos ill show you in a sec where im looking at some of these are selling off, and sometimes this takes time days, maybe weeks, but we just dont want to get caught at the top with those fomo ideas About these coins going to the moon, all right thats, pretty much what i do 24 7 with my portfolios, i dont want to get caught in these pump traps now. One big thing we have coming up this week, just in a couple of days time is our premium master class on trading, so its understanding, the overbalance in price and time. This is something that i used on the channel to understand the bear market or bull market flip for the s p, which of course carries basically all of the other markets around the world. We were watching this as the market rose, looking for the overbalance in price and time to give us that first checklist item to say, look the bear market isnt over just yet.
But we have a very strong macro signal to tell us that things arent as bad as the media is making out the me its still going on, and i still see comments from people saying just go and take a step outside the economy is crashing. Things are heading to the gutters, just wait, till winter comes in europe, etc, etc, etc, etc. Any other news headlines just dump it down there below, but for some reason the markets are telling us a different story. Now, of course, the lows can go slightly lower. Maybe we get wick slower, but lets look at where the the weeklies close, which is basically the macro scale here the higher low. This is the s p, were getting this move pump in right now, doesnt mean we cant go a little bit lower, but we do have some bases forming at the moment with all of this bad news. This is crazy. How often it happens and how often retail and even smart money will once was smart when it gets left behind when these trends change. So this is something that were going through in specific detail to understand these big trend changing moves and you can use them on small term time frames as well for your trading in this weeks, masterclass with the investor accelerator so drop, your name and email address link Is in the top of the video description, this is for the free newsletter, youll get that come out and you can make your decision there if you want to come and join it on thursday, it includes over 30 hours.
Of course, content. We also have weekly live group, calls where people ask q and as and also for the premium members discord community going through trading and investing as well. So hopefully we see you guys over there, so this was basically the over balance in price. The same sort of thing is what we are applying to bitcoin and ethereum. We can apply to any market to give us an idea of the strength in those markets. People were asking about the volume on crypto exchanges. Finance in particular were seeing a lot of volume. There some of these exchanges are doing promos at the moment. Binance in particular is doing zero percent trading fees so theyre starting to get a lot of energy. A lot more volume come through their markets, as for our channel sponsors by bit, theyre also doing zero percent. On all spot pairs, as well so its a battle at the moment between exchanges to get your business to be trading. On those exchanges, i mean look at the end of the day, its a business if youre using an exchange, you want that exchange to be profitable. You want them to survive because you have your your crypto on there. Well, i have some of my crypto and theyre, not all of it, but if were trading on them, we want those exchanges to be strong and liquid and going to be around for the bear market and the bull market. So i know people get triggered at exchanges, but personally i would rather have an exchange that i feel is stronger out there in the marketplace and is showing signs of remaining there through the next market.
Anything can happen. This is cryptocurrency, but i want a strong exchange. They got to do what they got to do: zero percent at the moment to try and gather that business. So that was the first thing that came up uh through those comments: eth merged two days to go one day: 20 hours, 54 minutes. What does this look? Like here in cryptocurrency, well, the 50 level has just broken down over the last 24 hours. The tops here were around just short of 1800, so looking at eth, the trap is if we cant get back above the 50 and we start to break some other support and resistance levels. Then this of course means it was a sell. The event type of announcement, the merge were getting lower prices coming into it were two days out were getting a drop on etheusd is the sell off going to continue? The only thing i can see holding up etheusd is, of course, the bitcoin price, because the bitcoin is still quite strong, so ill come back to bitcoin, but lets finish up on eth. The sell off is almost on cue, like i mentioned here on twitter. A link to this is in the video description. Ethbtc has started to tank. It has been multiple days now. This whole week has been down. We covered this yesterday, where the weekly closes, underneath the previous swing top and its showing a lot of weakness here, where its underneath the previous top that ran into that pump in may of 2021.
So that was basically the peak of the bull market, so were currently hanging underneath those levels were hanging underneath the clothes here. This is a yellow line and we still have five days. You know nearly six days left on the week. Of course, this is the macro time frame, but we really need to see eat by the end of the week start to close a little high. We need to get back above eight, eight point, two percent. Otherwise, we could turn around here and start to head lower, and this continues with the sell off. So like ive got in the the title here. Looking something around you know, crypto sell off. What can stop it? For me, the key level is this swing bottom, at seven point two percent on the eve btc chart because uh a lot of cryptos are following this, not all of them, of course, but eth being one of the biggest cryptocurrencies. We need to see some sign of support against btc, otherwise cryptos start to all sell off, and that then all leads into the bitcoin dominance, which is currently showing a bounce at the moment, which could be a minor minor bitcoin season. Here we saw one going back in may of 2022 just into june, even though the prices were basically starting to come down, the money started to flow back into bitcoin. So even if the price has come down, the money can still flow back into bitcoin or bitcoin.
Basically, just hold its ground compared to the rest of cryptocurrencies and the reason why thats important is we dont want to see our entire portfolios just bleed away again against btc value and usd value. So at the moment, btc dominance dropped over the last several weeks, probably based on the early, was stable coin takeover and then was the eth merch. That was all the eth merge news that was taking away share from bitcoin, but now weve seen a one two. Three four bottom here so quadruple bottom and bitcoin – is starting to bounce away at a pretty strong rate. You can still see the downtrend here it has to overcome. So nothing is really that confirmed for a big season of bitcoin dominance and i think overall, long term here the dominance will continue to fall because more cryptos are coming to the market. Eth is possibly taking over more market share and thats. Basically, what has happened to bitcoin over its entire history? It just is happening because more money is coming into the space and going into different different sectors, so tying all that analysis together. Bitcoin dominance, ethbtc, etheusd and bitcoin on the short term and what that means to the upcoming few days. Each needs to hold its ground above 1700 and ideally get back above 1800 theyre. The swing tops thats, where ether has to go for that sign of strength. Otherwise, we start to break down and then head towards 14 20 to 15, 20.
, so thats, basically the last support zone and thats what i think its got somewhere in the title. What can stop this? A support zone from eth at around 14 to 15 20 plus on the east btc chart holding up at 7.2 percent and not bleeding down further against btc value. Because, generally, when that happens, the rest of cryptocurrencies also bleed out against their bitcoin value, and that starts to head over to bitcoin, even if the price remains relatively stable, thats when that bleed begins to really take more of an effect like, i said its not happening Across every crypto right now, weve still got a couple of days left on this merge investors have talked about hedging their bets with other layer 1 projects, but i believe, if eth does break down here were probably not going to see a lot of strength come through To the others, they might hold ground, but i dont think were going to see those pumps if eath also starts to break down so thats. What ive got for the summary of eath? What im expecting over the next few days lets continue to track it on the channel so make sure you have subscribed, like the video lets, kick back to bitcoin and the macro move here. If we continue to get this upside and the trap being completely invalidated. So far, weve had one day close above. We obviously need a little more time above here to consolidate and then start to push above the wyckoff flip bar.
So this is the exciting part here. If bitcoin can get above, 23 200 hold above there, then i would say that this is starting to lean far more towards the strength in that medium term, for a healthy move, we have to see some market pull back. We have to see it if were going to be healthy in the uptrend. There has to be some profit taking here so that we can start to move up again. The danger is, if we get the profit taking and the market comes back underneath 21 900 and we start to break down again thats the danger, and then you know, puts these previous levels in danger as well: 18 and a half and another support zone at around Twenty thousand five hundred twenty thousand seven hundred the healthy thing here is if we do get some weeks down and then some closes back above twenty one, nine, so twenty one nine is really coming into play now as the danger or safety zone, so keep an eye On twenty one thousand nine hundred for now the tr, the trap has been invalidated for the short term thats great we can look to some alongside, but for the medium and long term were still not there yet because, as always, we need to see some closes above Key levels on the weekly chart and the weekly is due in about six days time. Bitcoin on the macro is putting in a higher low.
At this point and looking at the downtrends we are now coming up to the next downtrend here were still not at the major market. Bear market downtrend yet, but at least from the previous top to the current top here in august were trying to break through that. So thats some good signs if we take it back to the previous top in may as well. The speed of the downtrend is slowing, which is what we have been expecting and what were waiting for, especially with some lows coming in some higher lows: forming the old wyckoff accumulation here with the little double bottom in play, a nice bounce away. This is what we want to see within this period of the low the base forming. Remember it can go a little lower, but in my opinion i dont think its going to be anything that significant now i dont think were going to see prices break ten thousand dollars and, as ive been talking about with our members tia premium just another shout out There im posting to them about where ive been buying around the 19 and the 18 and a half k level based on the cycle. Buy zones that ive been showing here on the channel im, just sort of sticking to that plan. So anywhere between that 11 and a half to 19 and a half 20 000, i think, is going to be a pretty good, buy zone for the upcoming bull market.
So im not waiting here for levels of 13 or 14k call me stupid whatever you want, but in terms of a reward risk. I think this is a pretty good play. Call it 10 to 20k for round numbers. Looking to the upside of previous tops. 60. 70K. 90K. 100K: the return is still there compared to other markets, which is why ive been buying in here and posting it to the members. So if you want to get involved in that and join us on the monthly master go and hit that link in the top of the video description drop, your name and email address down. There join our newsletter well post this out within the next 12 hours.