Today we are going to be going over some pretty worrying things that you need to know about because things could get significantly worse from where we are and we don’t want to miss out on anything. On top of that, we are going to be going over all of the news that you need to know to be fully up to date, and we are, of course, going to be checking in on Terra Luna. Moreover, we can’t leave Jet-Bot without attention. This is a platform that is an official broker on the Binance exchange. Copy trading with Jet-Bot is the greatest chance to make money in copy trading crypto through crypto trading bots. You can use API keys to connect your Binance account, get your 3-day trial access and earn passive income just in one click.
Moving on to the bitcoin chart, we can see here that we had a lovely little breakout from our triangle here. We broke out, the bulls were hopefully getting back into power, but no, we got rejected here around $21k. We had a little brief wick up above that, but we definitely got rejected at this little line of resistance heading downwards.
We could say if we had a bullish hat on that we have been making, we just moved out the way that we have been making a higher high here, a higher low, a higher high and then another higher low could be coming into play. That could be happening and that would be bullish if we do find some sort of support and we do get above this resistance that we found around $21k. The next real line that I see is around the $27,000 mark because that played into the bitcoin price action a few years ago and really in this area. We have no real price action that happened. It could be a very fast move upwards if we look at it bullishly now.
If we remember that we are in a bearish trend, the market is not looking good, the whole world is not looking very good, and I do think that it’s definitely possible for us to head significantly lower. I have spoken about this before. Around the $10-14K mark is where I’m looking very closely. Of course, you guys can make your own decisions, but in any market condition, we can make a profit. We can make the best of it, and we can do that on exchanges like Jet-Bot.
Moving on, we do have the crypto greed and fear index sitting at 22, still in extreme fear but very much moving upwards. It seems like the market is getting less fearful, but we do have a lot to be fearful about. I would assume that this is going to head lower very soon again.
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The overall market is down 3.6% today, sitting around 900 billion dollars, and most of these coins are down on the 24-hour chart, down around 5%, but on the seven-day chart, we are still seeing some green, which is good because we had a very green weekend and last week was quite nice. It’s normal for us to have a pullback, especially in this market.
If we do quickly look at Terra Classic, I wanted to give you guys a warning. If you are a die-hard Terra Classic fan, we are still in a bear market. I see a lot of hype and a lot of things around Terra Classic that make me worried for the market. Don’t get wrapped up in this. If you are a new investor, it’s very, very possible that this drops another 50% overnight. 80-90%. It can happen.
Of course, we can make gains, but remember that this can drop significantly. It’s still up multiple x’s from the bottom right now. I see a lot of people talking about a big bull flag forming here. If the market wasn’t so bearish, I’d be much more bullish on this flag, but the market is bearish.
Moving on, we do have an update with capitulation. The market is still in capitulation mode. Long-term holders continue to sell at a loss as fear due to global macro events and Mt. Gox continues to spread. So if you don’t know what’s happening, there is actually three billion dollars’ worth of bitcoin from Mt. Gox that could cause the market to drop even further in August. 137 000 bitcoin may soon hit the market as Mt. Gox is sent to release funds to its creditors that have been locked up for seven years. This could be a huge knock for crypto, but the caveat to this is that it will be very short-term. There will be a release of these funds.
In my opinion, I’m sure that these will be gobbled up as quickly as like it almost instantly. I think that we do not have much to worry about, but it could be the event that brings in the market bottom and, of course, a lot of people are going to be worried that we may not see any significant buying until that actually happens.
Moving on, we have another hot inflation report and the start of earnings season make for a challenging week ahead, so this is the week we’ve got coming on Wednesday. We’re going to find out about the new CPI data in May. We have 8.6%. The market is already pricing in a higher rate than that.
If we get a lower rate, these are going to be happy days and a very bullish catalyst for the market. But if it is as expected, higher, this won’t be very good. Please prepare for this. This may lead to another market crash or at least a significant pullback. Do keep that in your mind, please. Things are not looking too good.
Of course, we have people being done with crypto because of the Voyager of bankruptcy, but one thing I wanted to remind you guys about this bankruptcy is that this bankruptcy doesn’t mean that your funds are gone forever. If you have money on Voyager, all is not lost. Of course, there is still the potential that it’s lost. We can see that they are focused on the path forward. It is not correct to think that there is no hope.
The kind of bankruptcy that Voyager is going through is the one that has a plan, not an instant liquidation of everything where all of the assets and funds are gone and no one is paid back. What this is is a bankruptcy plan? It describes the Voyager’s efforts to find an outside buyer or to partially replay its customers under the plan. If no buyer emerges, Voyager would give its existing tokens, 100% of the company’s equity shares, any proceeds from the $650 million dispute with 3AC, and a to-be-determined partial repayment of specific cryptocurrency held in their account, so not all hope is lost.
There is still some hope here, so hopefully it sorts itself out and any of you guys that have money stuck there get your money back, because I really do feel for you guys. I know what it’s like. I lost over six figures in the recent Luna crash, so I understand exactly how you feel. If you have any money on any other exchange right now that you plan to hold for the long term, ask yourself why it is still there. Why did I not put it in my ledger? Get yourself a cold storage wallet, put your long-term holdings in there, and keep yourself safe.
Finally, we also have good old Michael Burry expecting a 50% drop for the S&P. If the S&P falls by 50 points, there will be a lot of blood in the cryptocurrency market. I’m sure of it. I’m so sorry to be a Debbie Downer on the market, but in my opinion, we potentially have a lot more blood ahead of us. So adjust your game plan accordingly.
For me right now, I am simply dollar cost averaging into bitcoin and keeping researching and staying up to date with the market so I don’t miss any movements. With that said, I hope I have provided you with some value today.
[This article is a transcription of a video made by Conor Kenny]
Original video: https://youtu.be/LrrPxFhoGj0]
