Welcome back to the crypto world channel everyone, my name is josh and right now, bitcoin is seriously in a make or break moment. We have now hit the exact price target out of this falling wedge pattern, as i’ve been talking about over the last few days.
Now on the channel, and we have actually gone slightly beyond the price target so right now the bitcoin price is trading above this massive red zone of resistance for the first time in the last two and a half months and right now, as we speak, we are Coming into contact with the 21 week moving average one of the most significant moving averages for bitcoin in just a moment, i’ll be explaining all of this alongside my next price targets and my strategy for bitcoin, and that is not all right now, the bitcoin funding rates Are starting to turn negative once again showing us that more and more people are now starting to open short positions, believe it or not, and this could potentially lead into another short squeeze the last time that this happened.
I made a video about it on the channel and just two days later, we saw a massive explosion in the bitcoin price to the upside, so definitely make sure you’re watching this video all the way to the end, so that you’re not missing out on any of This important information, and if that sounds good to you just before we jump into it, make sure to drop a like on the video down below and if you’re new to the channel you might as well subscribe to the channel with notifications turned on so that you’re, Not missing out on any of these future videos. I make these videos every single day here on the channel and considering the fact that, right now, we are in an amazing opportunity.
There’S also never been a better time to share these videos around with your friends. If you’re interested, but anyway with all of that out the way, let’s get straight to what this video is about so right here on the bitcoin us dollar, chart on the four hour time frame and quickly recapping my last few bitcoin videos, first of all, around a Week and a half ago, right back here, i basically said that it’s very likely that we’re going to have a short-term call-off for bitcoin and, of course, that played out into a falling wedge pattern, which i was talking about a few days ago. Now on the channel – and i basically mentioned that this pattern, technically speaking – is a bullish pattern, we’re more likely to break out to the upside and the technical price target is the top of the wedge coming in at just above 42 000 us dollars. And of course, we have now met that exact price target. So for those of you that did take that nice long position there that nice little trade, you would have made quite a lot of money and right now we are running into a major moving average.
A very significant moving average, which is right now coming in at roughly around 45 000 just below 45 000. Now, because of course, this is changing over time, zooming out on the daily time frame, this moving average by the way is the 21 week, simple moving average and, as you can see right here, going back throughout bitcoin’s history. First of all, as soon as we broke below this moving average, we immediately went into more of a bearish time period for the next couple months here so yeah in around the middle of may, that there was a signal that we are in for a bit more Bearish price action over the next few months, potentially and going back further taking a look at the last time the price crossed this level. Of course this was a break to the upside back in the end of april, beginning of may 2020. So over a year ago now we actually broke above this moving average and the moment the bitcoin price did actually start breaking above that moving average.
As you can see, the price immediately exploded in the upside and then we actually had quite a long consolidation above the moving average. And then we saw another pump, another dump, but that dump was actually a perfect re-test of this moving average and because of the fact that we used this exact moving average. As supports for the bitcoin price back in around september 2020. That bounce that we saw back in september 2020 once again was basically just confirmation of the break to the upside and that sent the bitcoin price into a massive uptrend over the next many months. In fact, from that moment, just there in around the end of september, approximately up towards the all-time high, that was roughly around 200 days later before we finally started topping out here in the short term, and that was roughly around a 550 percent gain now, of course, I’M not saying we’re gon na see the exact same 550 gain in the next 200 days, but i’m just saying that if we break this moving average, that is actually very bullish because going back even further in time.
I would say that the time that we’ve been in over the past couple months is most similar to the time that we’re in towards the end of 2019. So right here, we did actually drop below the 21 week moving average towards the end of september 2019. Once again, we broke below that moving average. We actually had quite a long consolidation to the side, and then we actually had a huge pump up right into that 21 week moving average, and then we saw a massive rejection along that exact moving average. We did see a quick wick above that level, so it is actually quite important that we do see some major candle closes above the moving average and also if we can get a break of this level, backed up by another re-test of that level.
Then that is extra confirmation of the break to the upside, so yeah, once again in around october 2019, we did pump to that level, but because we saw no confirmation of the break of that level, we did get a nice rejection along that level and basically we Were in for a couple more months of sideways price action, slightly bearish price action before we finally broke above this level once again now you might be thinking well just around the corner. After that break of that level, just there we did actually have a huge dump. A huge capitulation for bitcoin, but that capitulation for bitcoin was during march 2020, when everything was capitulating. That was when the pandemic first really hit, and everyone was in a panic and the stock market was crashing. Everything was crashing and, of course, that sent bitcoin into a massive crash as well.
So we can’t really compare that price action to current price action, because that price action back in march 2020 was very unique to what was actually happening in the world during that time. So i do not actually see anything like that happening anytime soon, but yeah going back a little bit further at this 21 week moving average the last time we actually broke back above this level before that area towards the end of 2019. Back here this was actually the end of the bear market of 2018 Once again, we saw a huge bear market throughout 2018 and then the moment we broke above this exact moving average that essentially gave us the signal that we were about to have a massive gain to the upside once again, in fact, from the break of that level, Up to the next major peak, we actually pumped roughly around 240 to 250 to the upside over the next three months. So a huge bullish movement over the next few months and, of course, this moving average provided major resistance throughout the 2018 bear market pretty much. Every single time that we did come up and test this level multiple times this acted as resistance for bitcoin, so this can act as major support and major resistance once again going back in 2017, this exact moving average was major support time and time again throughout the 2017, bull market.
We saw perfect re-tests of this exact moving average so by now that should definitely be enough proof that this moving average is a significant one to pay attention to and yeah. Once again, we are currently at this moving average. We are currently retesting. This moving average coming in at roughly around 45 000 So if the bitcoin price can see a strong break above 45 000 – and we need to see some sort of confirmation so once again daily candle close above this level, if we could see a weekly candle close, that would be even better and also if we could See a re-test of those levels and use those levels as support. That would also be really good for bitcoin, and in that case, if we could see a strong break above this moving average, as i have previously said for many days now on the channel.
In fact, the last few weeks now on the channel, i will actually flip much more bullish on bitcoin over the next few weeks and months and honestly, i would actually be targeting up towards the all-time high within the next two months or so give or take after We can see a break of that level just yet, but it’s important to mention. We haven’t seen that break just yet. So keep that in mind. This level can still act as resistance, while we are still below that level. So that’s going back to what i was saying in the intro of this video right now.
The bitcoin price is in a deciding moment now taking a look at the bitcoin funding rates across all of these exchanges. As you can see right here, we are right now seeing a lot of negative funding. Rates for bitcoin starts to show up and just a quick explanation of these funding rates for the beginners out there. Basically, on these exchanges, of course, we have long positions and short positions, so people betting on the price going to the upside and people betting on the price going to the downside, and these funding rates are here to keep the market somewhat balanced. So, basically, during a bull market, when everyone’s starting to go long, it actually becomes expensive to hold a long position, because the funding rates become extremely positive and when the funding rates are positive, that means the long positions pay a fee to the short positions for keeping The long positions open and on the flip side, when a lot of people are entering into short positions that actually turns the funding rates to a negative funding rate, which means the sure positions pay the long positions to keep the short positions open because there is more Short positions than long positions, so the more negative these funding rates get the more expensive sure positions are to keep open, and these negative funding rates could potentially lead into another short squeeze a quick explanation of what a short squeeze is for the beginners out there.
Basically, what a short position actually is is when, for example, you’re borrowing bitcoin from an exchange and then you’re immediately selling that bitcoin for, let’s just say, a stable coin like usdt and then you’re, holding that fiat currency or whatever it may be, while the bitcoin price Is heading to the downside and then eventually to close that short position, what you have to do is buy back that original bitcoin and pay back that bitcoin to the exchange, the bitcoin that you borrowed and then, of course, in between you, opening the position and closing The position if the bitcoin price went to the downside, you would have had some extra money left over when you’re closing the position, which is your profit after the short position. But the key thing to take away from this is when you’re closing a short position. You need to buy it back into bitcoin. You need to buy bitcoin to close a short position and, if you’re in a short position and the bitcoin price goes too far to the upside, you are forced to close that short position by the exchange, so that the exchange can always get their money in a Worst case scenario, and so basically, if the bitcoin price can start breaking above this 21 week, moving average above 45 000 us dollars with that confirmation coming in on the charges here. That could potentially trigger a major short squeeze, because once again right now, we are setting up the early stages of a potential short squeeze.
But at the moment this is still speculation, because the bitcoin price needs to still head up here in the short term to continue to trigger the short squids. So, basically, to summarize this part of the video, these negative funding rates is actually a bullish thing for bitcoin, because this is essentially buying power that is waiting to be deployed into bitcoin. As these short positions will eventually have to close and keep in mind the last time that we had a setup like this, the last time that a lot of these funding rates turned negative was right around here when bitcoin was at roughly around 32 000 us dollars, Give or take – and i did actually make two videos back-to-back over two days on this channel right after bitcoin – hit these lows once again when bitcoin was at roughly around 32 000. I was telling you all that we are due for a massive short squeeze. We do have to set up for a short squeeze and if the bitcoin price can push up a little bit more in the short term, that’s going to trigger a major move to the upside and, of course, for those of you that listen to me around two To three weeks ago now, on the channel, you would have made a lot of money, because since these lows, the bitcoin price has pumped nearly 50 percent to the upside and by the way i continue to post these extra updates over on my twitter.
As you can see, i posted this tweet bitcoin just saw the highest daily candle close in 82 days, and i did actually mention some of the stuff that i was talking about in this video about half a day ago over on the twitter and also these extra Ethereum updates, as well throughout the day, so if you want to get extra free content, extra, real-time updates in the market definitely check out my twitter. The link to my twitter is in the description down below and also in the links down below. In the description, you will find some of the platforms that i do use myself, such as block fight, which is where i store some of my crypto to earn passive income just for holding crypto on block fire and such as buybit, where i actually trade, bitcoin and Ethereum to make extra money on all of these moves and once again, you’ll find those in the description down below, but anyway, that’s just about everything i have to say for this video. I hope you all enjoyed the video and i hope you got something valuable out of this video and if you did make sure to leave a like of the video down below and if you’re new to the channel make sure to subscribe to the channel. With notifications.
Turned on for more videos like this one and considering the fact that, right now we are in an amazing opportunity in the crypto markets we are only just beginning a major uptrend after a few months of bearish price action, so there’s never been a better time to Stay active in these markets and there’s never been a better time to share these videos around with your friends, because seriously you do not want to get in too late. You do not want to finally start getting interested in bitcoin when we are actually in all-time high levels. That’S when we actually simply want to be holding bitcoin and thinking about taking profits. Right now is the time to be accumulating bitcoin to hold for the longer term, but anyway, that’s just about everything you have to say for this video. Once again, i really hope you enjoyed and i’ll see you all in the next video
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