Bitcoin bear market confirmed crashing to prices not seen since just one month ago. Hey guys, sheldon evans here welcome back or if you’re new. Here don’t forget to hit the subscribe button and turn on all of those bell notifications and if you find any of the content useful in this video, please give it a thumbs up too. So, on my display right now i have the bitcoin us dollar chart open and i’m sure over the past 24 hours, you’ve noticed the cascading liquidations that we’ve had across the market, sending bitcoin down to around 42 to 000. Now across the top 100 coins.
Pretty much everything is down in the past 24 hours too, but it’s not necessarily the worst that we’ve had. The market has corrected slightly and it’s sort of mirroring what has happened back in may when we did have that major crash. So today we’re going to take a look at bitcoin and take some take a look at some of the other altcoin charts as well and see what is going on in the market. Is this? The start of a multi-year bear market is what seems to be the sentiment across twitter and the crypto sphere right now.
We’Ve got the crypto fear and greed index at one of the lowest that we’ve had in a little while right now at extreme fear. Let’S take a look at where it is right now pretty much at around 15, the lowest it’s been since around the crash back in may now. Historically again, i will always mention this buying when the market is in extreme fear is very good. It’S one of the historically most highest risk to reward ratio plays that you can have so lowest risk highest reward, but it doesn’t necessarily mean that we can’t go lower. So, let’s take a look at what’s happening on the charts and see where we are first we’re going to take a look at bitcoin, as i’ve mentioned in previous videos, when we did break above that multi-month downtrend.
That confirmed a new all-time high. But we have broken below that and i said if we do break below that, it’s likely that we’ll come up to test it. If we don’t break above it, it’s going to turn it into resistance and that’s exactly what happened and we’ve broken back down to around the 42 000 region, but we’re still using this downtrend as support for now, and the reason that i say this is that the Cycle that we’re in right now or this stage of the market – that’s right here is sort of a baby version of what we had back in may. But it is different in a few different ways and i’ll show you why, on the bitcoin chart and on some old coin charts. So, let’s take a look and if we did a bar pattern back from earlier here to here and we copied it over, you might have seen that it’s quite similar to what we had just a little while ago.
So we have the similar peaks a peak here and a peak here with a slightly lower peak and then the sort of cascade down after we’ve broken the trend after this initial pump, so very, very similar. In that regard, we also have a very similar move here to what we had just back here. So if i were to extend this you’ll see, it is very similar if i were to overlay it over the current market now, just because i’m overlaying this and showing you what has happened in the past again, history doesn’t necessarily have to repeat itself one to one, But it may rhyme and, as you can see very very similar, we had this initial cascading uh liquidations over here, with the capitulation wick down to around 42 000 back up slide down with a slight pump back up to the resistance that we had back here, which Is that pump over there confirm this resistance back down and a slow cascade down now? Does this mean we can have a little bounce back up and slowly casca k down back to here very likely, in my opinion, because it is very similar. The chart is looking very very similar if we look on the rsi.
We have something very similar as well just in a smaller sort of pattern, so a shorter time period than we did have back here, but after breaking this multi multi-week or multi-month downtrend on the rsi after we made new all-time highs, we broke above the rsi and Then turned it into support and broke back up, and that’s when we started the trend back to the upside. Now again, we’ve broken that to the upside come back down to it. We are very, very, very close to confirming it into support. Stochastic rsi is at the bottom, which means we could be due for a reversal, meaning we could see a slight move to the upside. Maybe we do see something like this into the upside.
But again, if we don’t, if we start going back down, it’s likely that we’re going to go back down for a little while this is going to be a few weeks to a few months in this period, where we’re sort of consolidating at new lows or sideways. At least so, it allows the market to reset itself, but we’ll take a look at some altcoins and why i say that, in my opinion i feel like this could be the lowest will be. We go at least for the short term. If we take a look at what’s happening with all coins, most of them are at key support levels and, of course, i’m going to start with a channel favorite, and that is luna retracing to the one six one. Eight fib level favorite for alt coins to retrace to especially after a pump.
If we look at what luna’s doing it’s very similar as well to what it’s done in the past, a higher high, slightly lower high and then a correction higher high, slightly lower high and then a correction back down to the fib level. And it’s pretty much been following this pattern since the beginning of the year, so in my opinion, this point is a very good position for us to reverse. If that is what’s going to happen with the market. Of course, this entire market reaction is a knee-jerk reaction reaction to what is was said at the fed uh after the minutes reconfirmed the plans to hike interest rates. Now, of course, this is a knee-jerk reaction to the market.
After this happens, you usually do see a large correction in the market that happens the last time this happened as well. So selling at these points is a brain dead move. In my opinion, if you are looking to take profits, if you are being scared out, if you have changed your sentiment, if you are scared of the market selling after an initial sell-off like this or when the market is read, is the worst thing that you can Do why? Because your risk to reward ratio again is very, very bad if you are looking to sell or take profits or you want to exit the market, you shouldn’t exit these points because it means that you’re overexposed. If you have to exit these points, i’ve always said if you have to sell, when the markets are red, it means you’re way too exposed to the markets.
You should only be investing with money that you don’t need right now, rather money that you, you only need in the future or don’t need it all. That is what you should be investing in in you shouldn’t be selling your house and your car to invest in the market or using your rent money to invest in the market. Of course, most people in this market are djinns and the gamblers and looking to make profits on the short term, but that is up to you to do on this channel. We try to provide actionable advice that allows you to remain in the market for a longer period of time, a longer period of time, as i’ve said many times. The one thing you want to do is avoid ruin.
I’M sure you can get wrecked a couple times in the market. You can lose some some bets here and there, but getting wrecked getting ruined is what will absolutely destroy you. You don’t want to have to exit the market entirely and have no lever or no capital to re-enter the market and regain those profits. So if you are overexposed and feel like, you need to sell right now, you need to cut back your exposure to the market. Let’S take a look at some other old coins, another one that we’ve spoken on the channel for a while is, of course cardano.
It has broken down slightly below the multi-month uptrend. Of course, we’ve had some pumps here and there along the way, mostly narrative, driven, as you guys know, smart contracts and so on, but we have broken slightly below it. If we don’t close above this, i would say likely we’re going to go back down, but we are at a critical support and this is the case with many of the old coins in the market. Right now, we can take a look at avax as well. Avax has retraced the 0.
18 uh fib level, a favorite of all coins to retrace to another key support level. Let’S take a look at what atom’s doing atom is going a bit against the market right now, once every everything else had dumped or had had its pump. That’S when atom saw its time to shine, it seems in the market right now. Atom’S rsi is quite high. Stochastic is quite high as well, so if it is looking for a point to reverse it’s going to be here unless we turn this into support and we make higher highs after this, so hopefully we can close above this unlikely at this point, especially if the rest Of the market continues to dump over the next little while, but if that isn’t the case, and we do continue moving sideways, which, if let’s take a look at what’s happening with altcoins versus bitcoin and ethereum, you can see that altcoins like luna, is super uh outperforming Bitcoin over the past year, which is expected, but we can also see that the stochastic isi rsi is at the bottom, as well as the rsi is sort of making a new low a new high, a new lower high.
If it forms this as an elbow, it likely means that we’re going to go up now. This can mean one of two things: either that bitcoin’s about to dump and alt coins are going to pump or that altcoins are going to outperform bitcoin in the short term and the same goes for ethereum. So let’s take a look at lunar versus ethereum. Very similar thing we have right over here, stochastic rsi at the very, very bottom, the last time this happened. We had a major pump for lunar versus ethereum around 100.
If we take a look at ethereum, you can see that since the first of january, as i said, we’ve had an uptrend for the past year, ethereum has been moving pretty much year to date on an uptrend. The only time we broke below it was in that major crash or capitulation back in may june, except that we didn’t make a w shaped recovery and bounce back above this multi-month or yearly uptrend started on the 1st of january 2021 and broke below it. On the 29th 30th of december 2021, so that’s basically one year of uptrend, we broke below it and turned it into resistance back down, but we are still at the support band here so in my opinion, again at a very, very strong, critical support level here. Hopefully we don’t lose this. Of course, i can’t predict the market.
Neither can you it’s very much dependent on what the news is saying right now what the sentiment goes against. Of course, there was the kazakhstan mining ban for bitcoin as well, a narrative that of course caused a lot of the dump back in may, as well was the banning of bitcoin mining and the elon musk bitcoin uh eco-friendly narrative that we had back then something very, Very similar is happening this time around. If this is the case, if we do go further, it is going to be the second once in a lifetime. Therefore, twice in a lifetime buying opportunity that we had similar to march 2020, which means we would have a major capitulation, a major crash, an opportunity to buy up again before we start making new all-time highs. Now i don’t think we’re going to pump in the very very short term.
I don’t think this is the case. I think we might have some more consolidation, just as i showed you with the fractals from earlier in the year. I believe that we do continue going down down slightly or perhaps even just consolidating sideways over the next month or two before eventually starting a new uptrend and the reason being is pretty much. The same thing that i’ve been saying over the past year is the news that is coming out this year. It seems to be coinciding with the ethereum 2.
launch date, and this is something that most people aren’t talking about, and i do believe it does seem to point to mid this year is where we might have a top in the market. Now again, no predictions here. All i’m saying is that what is what the data is pointing to right now in the news that we have? It seems to be all coinciding and correlating, with this june date that we have or july date that we have for ethereum 2.0.
Now, whether this happens or not, it’s completely dependent on what the rest of the market does. We aren’t having similar cycles to what we’ve had in the past, where bitcoin pumps and then large caps, mid caps, low caps, many coins and many niches of the market are pumping independently from one another. And, of course this comes down to use case. Most of the market, up until this point has been narrative and speculation driven driven, meaning that they pump, depending on news and depending on the overall health of the market. However, now we have productive assets, we have assets that people are using.
Ethereum is actually an underlying settlements, layer for a lot of banks and a lot of the payment systems around the world, we’re seeing luna and ust being adopted quite well right now we had ust and luna being listed on binance. A lot of this is taking place. Independent of bitcoin, independent of ethereum and independent of what the macro market looks like, but of course the macro market will still affect risk on markets like cryptocurrency. So if the overall stock market and the overall traditional markets do crash – or we have a major sale from them, of course, that would correlate and uh shift over to cryptocurrency as well, but in the short term. In my opinion, if you are selling at this point, i think that is a brain dead move.
I think you should wait out a little bit. You always will have that sort of relief balance that will allow you to exit the market. If you do want to take some of those profits off of the table, you don’t want to be selling after a major crash, and john cavallo illustrates this very nicely here. Everyone must endure the brutal bitcoin right of passage of a bear market where the investments are severely underwater. This includes elon jack and michael saylor, and of course, you too, so there will be a time in the market where you are in the red.
It’S not only up only if you buy at one point and the market immediately reverses it on you, you are going to be underwater, your portfolio is going to be in the rate, but it doesn’t necessarily mean you’ve lost money until you’ve realized those losses. Of course, until you sell that crypto again and you exit the market, then your losses are realized, but simply enduring these dips and waiting for the market to eventually recover, which it always does over the long term. Then you have endured the brutal bitcoin right of passage. Hope that clears up the market today. I hope you guys aren’t too worried about this.
I hope that you haven’t been scared out of your bags just yet. We’ve talked about this many many times on this channel. I’M sure at this point, hopefully, if you’ve been watching for a while, you have been desensitized to this. If you guys haven’t yet don’t forget, I’ve got one day left of the ymh nft giveaway, as well as fifty thousand dollars. So literally, all you have to do.
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Don’t get too scared about the markets. Things are going to be okay if you’ve made it this far in the video. Please comment down below cool fan. As always, I shall see you in the next video cheers.