Bitcoin got rejected from our resistance zone right here we had a rising channel. We broke down to this rising channel and right now, bitcoin is showing a reaction at a very specific price level. I have been mentioning in yesterday’s video, but guys, although bitcoin is breaking down right here, the crypto markets in general might not be that bearish overall, but are actually quite bullish, and we are going to have a talk about that in today’s video. I want to show you some different charts as well, so, for example, this chart is very interesting right now is the bitcoin dominance chart which is breaking down showing us that liquidity is going to altcoins in the crypto markets. That is a very important signal right now and we have some charts like this one ethereum against bitcoin, which is trying to continuous uptrend, and we have another chart of an altcoin which is almost or at the edge of breaking out right here.
So i’m going to share this with you too guys, then guys before we are jumping into the bitcoin charts. I want to remind every single one of you that, right now there are two major bonuses going on one over on the by bit platform and one over on the femix exchange and these bonuses you can claim, if you sign up using my affiliate link down below And on buybit you can get a bonus of 600 us dollars and you will get a 10 discount on your fee the first month that you are using by a bit and on the femix platform. There is a major bonus going on where you can get a additional bonus of 1100 us dollars so for all the traders out there, you can find my affiliate links down below and most of these people most of the traders out there. They know buybit and phoenix as platforms where you can trade perpetual contracts, where you can trade bitcoin and a variety of outcomes with leverage. However, guys both of them are offering trading on the spot market too, and both of them are offering a couple of trading pairs to trade on the spot market with zero percent fees, even if you uh, if you use market orders, so that is actually quite interesting.
Guys so for everybody who’s interested in that you can find my affiliate link down below this video, then guys. I would appreciate it very much if you would drop a like down below this video. That would be very much appreciated and i want to thank everybody for the past couple of videos, guys for all the nice comments that i’ve been receiving. I know a lot of you guys are watching my videos and i’m not commenting and that’s completely fine, but i do really appreciate to see now and then a comment because it also it gives me a better connection with you, because the majority are just watching the Videos right – and i don’t have too much direct interaction with, but i always really enjoy to read all of your comments, there’s just something i wanted to say today and yeah. I really appreciate the comments i’ve seen over the past couple of days now guys, let’s finally jump into the bitcoin price action, so what we are seeing right now with bitcoin.
Well, we had this bounce. We were expecting this bounce already for quite some time. It was yeah, quite a big bounce. We’Ve set a new higher high, that is very nice uh, but right now we got rejected at the resistance, which is very logical, even though, if bitcoin would continue to look bullish right, we still, it would make sense to get a rejection at some point where we Have resistance that was 42 000 u.s dollars, and that is a level i’ve been mentioning so often before, because 42 000 us dollars right here has been showing a lot of significance in the past.
It has been acting as resistance before, so it makes sense that we get rejected from this level and right now. The big question is, of course, whether this rejection will be shown in a continuation of this downtrend right here, or whether this rejection will be shield in setting a high low and eventually continuing that up trend. Well, like i mentioned in yesterday’s video guys, we are seeing or like the the last level we actually want to see bitcoin go in order to set that high low in order to still continue to look. Bullish is 32 500 approximately right now, but basically it’s going to be this level right here, the former resistance of this descending channel. If that level cannot act as support and bitcoin would break back into it, that that would be very bearish.
That would show a lot of weakness for the price of bitcoin guys and another reason, and not a lot of people are talking about this actually. But another reason why 42 000 was such a significant level, where we got rejected from is due to the fact that it has been yeah resistance from this declining resistance right here. If we connect these two highs in the bitcoin price, then we can see that we actually have some form of a declining resistance coming in right here and guys. This level can help us predict the next rally in the bitcoin price. So if bitcoin wants to make the next rally, we need to break above this declining resistance in the bitcoin price.
So here we got. We created that declining resistance, basically and right there. We have that confluence. With this trend line and with 42 000 us dollars with the previous high right here, showing a lot of significance, so this is going to be a interesting pattern forming in the bitcoin price, where we have a declining resistance and if bitcoin wants to continue a rally. It’S nice to see a breakout right here we test, and that might be a signal that we can see a further well in the bitcoin price.
So this is another trend line that i’m watching, but for now i definitely expect bitcoin to continue to see lower levels to set that higher low and until we are seeing that clear reversal and are going to go for another test, i will be slightly bearish in The immediate short term time frame, but in the mid and long term time frame guys things are actually still looking very good and let me first show you the levels that i’m watching right now in the short term time frame before we are going into these different Charts well in yesterday’s video guys, i’ve been stating that if we lose 39 500, the next level to watch in the price is 37 500, and the reason i came to that level is due to the fact if we measure the fibonacci retracement tool from the bottom Right here till the top, then we can see that that was approximately. The 38.20 was slightly above 37, 600 and so far bitcoin is seeing a rejection or reaction from this level. That is also very logical, right to see a reaction and might see a bounce back to 39 500, get a rejection and see lower levels before we can really set that higher low, maybe at 35 000 us dollars, maybe at 32 500 us dollars. Uh really depends on bitcoin.
We do have a cme gap at opening at 32 500, so that would be an extra reason for um for the price of bitcoin to reach that level. That is something just to take in mind right. If you have a, if you have a high leverage, long position right now and your liquidation price or your stop loss would be below 32 500. You might want to. You might want to take profits already right now, if you, for example, longed at the breakout right here, there’s just something to take in mind right and we reposition yourself once bitcoin is seeing that lower level.
It really depends on your strategy. I’M just here to show you to show the uh significant levels that we can see in the bitcoin price. So after we break 37 600, approximately the 38.20 fibonacci level. I expect that the next major level is going to be 35 000 us dollars.
We could see a reaction at 36 000 us dollars because it is the 50 fibonacci level, but i do think that 35 000, because it has been showing a lot of significance in the past 35 000 – is going to be a very important level for bitcoin and, Like i said in previous videos, it is possible we go below that and it is possible to get to to still touch this trend line. However, guys if we are doing that, if bitcoin were to come down to touch that trend line, we really want to see that in a quick move. So we don’t want to see bitcoin coming down right here. Breaking 35 000 us dollars, and just like hang around this um range for a couple of for a period of time. We don’t want that.
We want bitcoin to come down. 35 000 is going to be a very important level if we were to see to see bitcoin to go to lower levels. We we in the best case scenario, want to see that as a quick move so quickly dip into the one point, eighty percent, or quickly dip into that uh filling the gap, kind of style, thirty, two thousand five hundred and then quickly um yeah, get bought up Again and set that higher low, so that is what i’m basically watching in the bitcoin price, so i think the formation right now in the immediate short term time frame is still slightly bearish because we got rejected from that resistance. I will turn bullish the moment. Bitcoin is breaking above this declining resistance.
That would be a clear signal that bitcoin is turning bullish again. I still do expect that the scenario of bitcoin setting a higher low right here and continue this uptrend is higher than that. We are going to see bitcoin setting new laws, but one major signal for that is as well guys which i’ve been pointing out yesterday. That is the 21 week ema. If we were to get a weekly close this week below the 21 week ema, then that is also another signal with go which goes into our baskets of basket of bearish signals this.
That is just something to take in mind, so all in all, bitcoin is still looking healthy. It’S still looking good, but we want to yeah. We want to see some signals being confirmed during the coming days right here, but also in the weekly close, which are going to be important. Then guys. I want to bring you to the next chart in the bitcoin price, and that is the bitcoin dominance and the bitcoin dominance.
I have been talking about the bitcoin dominance in my previous videos as well, and what i’ve been saying is that um yeah, what we are seeing right here could be a retracement and we could be seeing a further decline in the bitcoin dominance, which means that liquidity In the general crypto, markets will be flowing from bitcoin into altcoins, and it also means that the money is being made in altcoin. So we, what we are seeing right here is, we have seen a quite a bit of a drop in the bitcoin dominance. Already right here, patent-wise, we formed a rising wedge pattern. We had a fake out to the offside, so we broke out to the upside, but we failed to hold that, and this is actually a bearish sign when we are seeing a field attempt of breakout and most of the time that is already a small confirmation or At least a big signal telling us already that most likely, we will break below the support of the patent, and that is exactly what we did. We had that fake out to the offside, and eventually we broke below the uptrending support, which is basically showing us.
This chart is basically telling us that the liquidity from bitcoin is running into all coins, and that is not really happening if bitcoin would look extremely bearish, because normally guys when bitcoin would look extremely bearish right before bitcoin is going to see a massive dump. For example, we are seeing the bitcoin dominance increase due to this uncertainty that is going on in the markets, but right now it’s not the case. We are seeing the bitcoin dominance decrease breaking down of a pattern, which means that there is still a lot of confidence in the markets and that investors and traders right now are speculating in these crypto markets, which is perfectly good sign of where we are right. Now. In this bull market, so this is a very interesting development right, the the lower the bitcoin dominance, the more speculation is going on.
Actually, the more bullish people are on crypto in general and then let’s have a look at a couple of cryptos. First of all, let’s have a look at ethereum in the bitcoin comparative this one. We have been trading wide. We have seen a nice breakout. We came down.
We have seen a retest of the previous high right here at approximately zero to zero 63 uh 750 bitcoin. We got that re-test, we got a nice bounce so far, so this looks for a continuation and we might see guys a acceleration in this um yeah in this trading pair, so that we have a breakout. We have a retest and that we are sooner or later going to see acceleration similar things like we have seen in the past with ethereum that were right here. For example, we had a bomb consolidate once we broke out to the upside. We saw an acceleration and ethereum eventually went to a blow-off top event against bitcoin, something we could be seeing right here as well, where we have a pump consolidation and once we are breaking out, we are going to the final stage of this bull market, which means A high amount of speculation going on, of course, a lot of liquidity going into ethereum, like we have seen in the previous bull market.
So we could be seeing in the coming months here guys a accelerated move of ethereum and eventually ethereum topping out against bitcoin. Okay. So that is one of the uh scenarios that i’m watching for ethereum. Then i want to have a look with you guys at the following chart, and this is dos coin against bitcoin, and this is actually looking quite interesting and guys. The reason why i think dogecoin is so interesting is because the pattern that we are seeing is actually quite bullish and a lot of things in this chart are actually lining up quite nice.
Let me explain to you what i mean with that. So, first of all, we have seen a lot of attention a lot of hype going into those coin in the past cop, in in in this bull run in general right we have seen elon musk tweeting about it all the time, and we have just seen a Lot of liquidity going into dogecoin during these bombs, so there was a lot of interest by the public interest by traders to go into doscoin and right here, doscoin, topped out at approximately uh 1287 satoshi’s. We have seen the top and eventually those coin, just seen a retracement right. We have seen a retracement against bitcoin, then guys. The interesting thing about this retracement right here is, if we measure the fibonacci retracement tool from the bottom right here, till the top of this move, then we can see that we, we traced exactly to the 61.
0, which is normally the level where we are seeing retracements To and another interesting thing guys right here is that the pattern that we are seeing during this retracement is a falling wedge pattern and normally a falling wedge pattern is a continuation pattern, which means that we have an uptrend falling wedge, which is often a retracement, and Then we break out to the offside and we can continue this uptrend. So that is another interesting interesting signal that we are seeing right here, any dose coin chart. Then, when we bring out the momentum indicators, because these need to line up too, with the story that we are seeing in this chart, then we can see actually something similar and the rsi for me is looking actually very interesting – the mac d2, but the rsi relative Strength index is looking very interesting. We had actually from this peak right here in april 2021, we had a declining resistance on the rsi and look guys the significance when we set that higher high and lower high in the rsi. How did it signaled us that this was a trend reversal, so that is very powerful of the rsi guys?
We can early on spot trend reversals where we are seeing. These divergences on like higher time frames right on the daily time frame and then eventually, we went into this falling wedge pattern and during actually from right here april 2021, we had a declining resistance on the relative strength index on the momentum indicator and right now, what We are seeing is that we already broke the declining resistance in the error side and actually what we also did. We we backtested that declining resistance back as support, and what we often see guys is that we are seeing uh breakouts in the rsi earlier than in the price. So this could be an early signal that we are going to see. Does coin breaking out to the upside right here and might continue its uptrend in the bitcoin comparative during the final phase of the bull market that we might be in right now do take in mind guys.
I want to be very clear about this. I’M not a fan of holding out coins for the long term, i’m personally holding not any altcoin for the long term. Time frame, i’m only trading out coins to accumulate more bitcoin, so i wouldn’t be huddling dogecoin forever. I would just trade this move just in order to gain more bitcoin and to take advantage of these hypes of these swings that are occurring in the markets right, that’s, basically what what you should do as a trader, so i want to be clear about that, because, If we are going to enter the latest phase of a bull market, guys then mo, then it is possible that we are going to see one last lag right here in dos coin, one last wave to the offside any and eventually after bitcoin is speaking out. All of the altcoins what we have seen in previous bull markets.
That is my argument. They are losing 80 to 90 to sometimes 98 of their value against bitcoin. So you, in a bear market of when we are seeing the big top occur in bitcoin afterwards, you don’t want to hold uh alt coins, because in bear markets they will bleed way more uh, any bitcoin comparative and and sometimes even lose like 90 to 95 of Their valuation, so that’s also the reason why i’m not basically holding outcomes for the longer time frame. It’S too big of a gamble to invest in them for a longer term. Time frame, however, to use them to trade uh.
These swings to accumulate more bitcoin is yeah. It’S actually perfect and it’s a very good way to yeah to earn more bitcoin so guys. Let me know what you think right now is going to happen with the crypto markets. Do you think that everything is looking bullish due to the fact that the bitcoin dominance is still decreasing? Do you think that altcoins are looking bullish?
Are there any altcoins? You want me to take a look at drop them in the comment section below guys. That is uh. That would be fun thing to do, then, for the traders out there guys who are interested in trading dogecoin or trading ethereum. You can do that all over on the buy bit and on the femix platform, and if you use my affiliate link to sign up on buybit, you can get a 600 us dollar bonus and a 10 percent discount of your fees.
For the first month that you are using by a bit and if you sign up on the femix platform using my affiliate link down below you, can get a additional bonus of 1100 us dollars, then guys i want to wish every single one of you a awesome Day today and i hope to see every single one of you in the next video