14.7 C
Tuesday, October 4, 2022

Was Dogecoin A Scam?

So is dogecoin in altcoins ever going to come back or did we just partake in an institutional level? Scam. I’Ve been getting a lot of questions about if meme coins are dead or are we going to see another alt season and that’s exactly what we’re going to be breaking down in this video today, i’m going to break down the series of events when elon musk started Participating in dogecoin and how that sort of tied up with the timeline of bitcoin, so we can benefit if and when we see another altcoin run and if that sounds interesting, make sure you hit the like button on this video for the youtube algorithm. Also, if you’re new here, i make content all about day, trading, cryptocurrency and personal finance. So if those are things that suit your fancy, make sure you hit the subscribe button and turn on all bell notifications.

So you know when i post all right. So, dare i say that dogecoins dosh, corn, doge corn, so dare i say that dogecoin sort of catalyzed the beginning of a major move in meme coins across the board and really started to show some emphasis on how much money you can make really really quickly getting On the right side of these altcoin projects, of course we had cardano. Of course we had v-chain bittorrent, we had a ton of altcoin activity, but sort of dogecoin ended up taking most of the limelight and if you can see right here, we have over a million people, have it on the watch list. And if you look at that, comparatively to bitcoin, only 1.8 million people have bitcoin on their watch list.

So dogecoin is one of the most watched cryptocurrencies and i’m not going to dive too much into the fundamentals of dogecoin. I actually made an entire video reviewing the fundamentals which i will link in the description and at the end of the video, so you can watch that a little bit later, but that’s not super important for the concept of this video. What is is understanding the true major catalyst that we’re all aware of that really started to push dogecoin, which was elon, musk tweeting about it and sort of pushing it. And after doing some analysis, i have reason to believe with sort of like the meme coin. Culture and what started happening with institutional investors.

I think that there was some collusion going on, and this is definitely me sort of going shifting into the conspiracy lane just a bit. But i’m just gon na provide all the evidence that i have and talk about it, and the fact of the matter is that in real life, these sort of things happen where institutions try to time fundamental information to align with really good technical analysis to be able To benefit off of those moves and elon musk ended up being one of the most powerful tools in cryptocurrency in general, and i don’t know you’re just gon na have to see me break this down, and then you can. Let me know in the comments below, if you think, i’m nuts or if you think, i’m actually coming up with something, but this is going to help us be able to navigate moving into the future. But what my thesis is is, i think dogecoin was an institutional money grab that sort of allowed institutions to sneak out of bitcoin and get that one last push to transfer money from retail to institutions, and i’m going to show you exactly why i think so. I’M going to pull up the dogecoin chart and i have it matched up with a timeline of when elon musk tweeted things and when things happened in both dogecoin and bitcoin, and why those are scary, when you compare them together.

Okay, so here is a dogecoin chart. I added these blue horizontal lines every time i noticed something fundamental happened or when there was an important part of bitcoin versus dogecoin that i think was important to take note of okay. So the first thing that really grabbed my attention was this period in the price action of dogecoin right here, so we randomly got a massive pump in dogecoin right on january 28th and if we go over to the bitcoin chart on that exact same day over here, We can see that january 28th was the exact low off of this initial push on bitcoin. So it was sort of an easy way for institutions to slide out of bitcoin and start an interest in something that is way smaller by increasing it from basically a cent all the way up to about eight or nine cents, just to get it on people’s radar And say: hey what’s going on with this coin, if we see bitcoin continue to go, could we see this coin absolutely explode as well and do hundreds or even thousands of percent? This is where bitcoin was breaking this downtrend right here and starting to break out again, and this was on february 4th and here’s where february 4th is on dogecoin’s price action right here.

If you look at what happened on february 4th, this is when elon musk tweeted. This the simba lion king meme, with the dogecoin head on it saying you’re, welcome basically saying buy this coin, you’re, not going to regret it sort of being the troller that elon musk tends to be then, after that we got to push all the way up back To that retested high level right here and then we saw a period of dormancy where it sort of traded sideways for a little bit. But this is where the craziest part actually happens. So if we go over to the exact top of where we saw the bitcoin chart at all-time highs on april 14th is the highest point. Bitcoin has ever gone and the high was right around 64 65 000 per coin.

And if we look over, this is the exact day on the dogecoin chart where we started to see this major parabolic move upward. Okay. So on april 14th we started to see that secondary push when people thought dogecoin was sort of dead. It wasn’t going to do much. The exact top of bitcoin was exactly when dogecoin started to pump again.

So after people sought hit off of this level, we saw it break the 10 cent level at the exact top of where bitcoin was. And then, if we go back to twitter, we can see that elon musk sent out a tweet on april 15th, saying dogecoin barking to the moon. He also sent out a tweet on the same exact day showing dogecoin on a rocket headed towards the moon and lo and behold, we started to see a parabolic move on dogecoin and what i’m thinking is. This was the point where institutions saw bitcoin hitting this 61.8 level right here, which is oftentimes, the top of a full elliott wave uptrend and, as the price of bitcoin started to break down of this overall trend right here we have dogecoin absolutely ripping face up distracting Retail money from the fact that bitcoin has just hit its top.

So what i think happened is institutions started parking, a lot of their money in altcoin projects and then pumping them after we got this initial pull down right here. Dogecoin is just continuing to move up and everyone who’s sort of in crypto is now shifting their focus over to dogecoin all right. Then we get a correction up on bitcoin right here, where we start to form this a b trend right here on the eliot wave analysis i did on bitcoin, and this is also lining up with the exact time that guess what elon musk went on saturday night Live you can see right here. We went on saturday night live on may 8th in 2021 and if you look at the exact secondary high on this b wave, this is exactly on may 8th 2021, when elon musk got on saturday night live and said: dogecoin is a joke. On top of that, at the same exact time, the same exact secondary high in this abc correction was the exact high of dogecoin, and it was also the 161.

multiple of dogecoin off of this first wave right here. You can see this. These levels are matching up perfectly, and this is oftentimes a top if you can use the first wave so from this low to this high, you find the one six one, eight multiple of that that’s oftentimes, an area where a trend will exhaust and then turn around. So you have all of these things lining up simultaneously, and this is not the first time that we see this type of pattern. This type of pattern happens all the time.

I can actually show you another example that looks almost exactly like it, where we see wave one to two three, four five, and then we have this abc correction, where we sort of have this downwards channel right here with a slightly lower high, giving us this abc Correction – and this is oftentimes where the trend will fail and start to move down. You can see right here if i play it into the future. This was the exact top and came down all the way to the 261.8 level on this trend, and so you can start to use fibonacci to time to overall trends like this, which is also going to open up a ton of short-term trade opportunity. And that’s how me and my cryptocurrency trading team were able to absolutely nail it during altcoin season and make crazy returns on trades, because we knew how to technically get in and technically get out, which is another reason why trading is super important to be able to Maximize the money that you make, you can’t tell me that elon musk went on saturday night live randomly on the same exact day.

We saw the top of the b wave. At the same exact time we saw the 61 8 level reached on dogecoin at all-time highs without having some sort of plan to have it work out perfectly by delivering the fundamental news at the exact appropriate times. The technical analysis matches up to best benefit institutions and also elon musk. So it was a tool used to transfer wealth from retail, to institutions and that’s what we need to start understanding so that next time we see something like this. We can also think preemptively like this and position ourselves accordingly.

So whether or not this is true now what i want to do is go over what i think is going to happen with altcoins in general and what we should be keeping in mind as investors to benefit off of this. But now i want to show you something that’s sort of interesting that you can use as a metric to calculate what low-cap cryptocurrencies are doing and it’s actually called the shitcoin index. This takes a group of all the most popular low market cap cryptocurrencies and shows you how they’re moving as a collective whole, and you can actually invest in this as a way to diversify across altcoins and actually get significant moves. When the overall altcoin market is to push so that you can benefit off of this next crypto bull run if we are to see one so the most interesting thing that i wanted to point out, i got ta pull up bitcoin over here, so what i ended Up discovering is that altcoins are only really going to push based on historical data when we see new highs in the crypto market, and we see a new pool of investors come in because when a new pool of investors are going to come in they’re going to Look at bitcoin they’re going to look at ethereum and be like they’re up so high number one number two. I don’t have that much capital to put into this at this point to make it really really worth my while.

Why don’t i try to find some smaller projects that are also pushing where i can get 100 200 returns relatively quickly versus waiting for bitcoin to go from 100k to 200k or so on? So you can see right here from february 10th in 2021, all the way up to april 17th, which was essentially the high of where bitcoin went. We can go over here and look at the same day from february 10th right here up to the top of the market. From the time we broke out highs right here to the high right here. This was a 55 gain on bitcoin’s price.

But if we look over here on the coin index, we can see as soon as we broke this high right here from this point up to the high that it went. That’S a hundred and twenty percent gain. So that’s more than double the amount of gain that happened when bitcoin breached all-time highs and then continued to break out. So we really don’t see that much significant movement in cryptocurrency altcoins until we see a new pool of investors in the crypto market. But i think once we see the price of bitcoin break over this high and sort of come up and trail through this high.

We should see a pretty parabolic move across the board in altcoins, which means that we’re going to get a push in certain projects. And it’s probably going to be a lot of new, smaller projects that we see movement in. So to answer the question of, if we’re going to see alt season come back again, i think once we see all-time highs of bitcoin, a consistent close above that we’re gon na see a whole new pool of investors in the market. Cap of the entire cryptocurrency market is going to get way. Bigger and there’s gon na be a lot more room for money to flow into all projects which is going to allow those smaller market cap projects to have a lot of room to run.

Especially off of that speculation, also guys for those of you that are still here, i just opened up a telegram group where i basically alert out all of the trades that i’m taking in real time with an entry, a stop loss and a profit target. We’Ve been absolutely crushing full profit trades this month, so definitely check that out in the description below. If you sort of want to get your toes wet and you don’t want to start fully trading, but you want to take trades alongside me. I’Ve been literally trading for six years, so that’s always a good option to get started for you.


Related Articles

Stay Connected

- Advertisement -

Latest Articles