Things are not looking good right now. The market is absolutely horrible. Bitcoin just dropped into the $33,000 range, which is basically the last hope for this short-term period. Today we going to go through exactly why this is happening. Some of the news that you need to know to be fully up to date. We are going to be going through some of the Ethereum wales top holdings. These are potentially the best coins to be holding if we are heading into a longer-term bear market, holding a dollar cost averaging into.
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First of all, we got this little article on crypto potato blood buff continues as Bitcoin dumps to the lowest price since January. So let’s head over to the Bitcoin chart. We have had a massive drop right now down to that very critical level of support. We have quickly bounced off that now, but we are in very dangerous territory right now. The first time would be the final time. We would really bounce. If we don’t hold that, I’d say it’s very likely we’ll head down to that $29,000 region, which was the low during the May-July bloodbath.
I don’t think that that is unlikely; I think it’s actually very light simply because loads of people will have stop losses set right there at the 30 to 29k mark instead of having them down here to sustain if we do have a wick. They’ll have them here. Who knows if that’s true or not, but that’s what I believe; the market will be pushed down, and then the second we hit those stop losses, if there are mass stop losses here, the market will drop very quickly, even further down, which could result in another wave heading down. I would really like us to hold on to the daily candles above that $29,000 mark. I’m okay with a wick below it, but I would really like us to hold it so we can stay with this upward trend that we have. This is a very long-term higher high, higher low, which would be invalidated if we do drop below that $29,000 mark.
We have to wait to see what’s going to happen. Hopefully, we will have some good news come out of this CPI data meeting. That’s on the 11th of May, so mark that date in your calendars. It’ll be very important if we have good news come out, or if we even have neutral news come out, I think it’ll be very bullish for the market. If we have worse than expected news, it will be super bearish.
On top of that, I also see a lot of people saying that Bitcoin clearly is not a hedge against inflation, but that is such a short-term opinion. Of course, in the last, let’s say six months or however long it’s been since we hit the top, it has not been a hedge against inflation at all. It has been since it has been very much a hedge against the inflation that we’ve seen. That’s my opinion. That’s not fact, but that’s what I think. That’s why I continually put dollars into Bitcoin today.
One of the ideas that I’ve had is to dollar cost average into Bitcoin and Ethereum in very small amounts. The lower we go, the higher I increase those amounts. That’s not a definite way I’m going to be trading, but I am going to be continually reinvesting in Bitcoin, especially some Ethereum, most likely Solana, and a bunch of these other coins. I would like to have quite a substantial bag in Dogecoin just simply in case Dogecoin leads the next rally like we saw last time. Of course, that would be a complete gambling play.
With that said, heading over to the crypto bubbles, across the board we’ve got eight coins down to 10%. Like I was saying back in the day, you know, way back in the day when Apecoin was around $15, the risk to reward was not there for me. There was definitely a very good trade there if you got in and got out when it was around $27, but for now, I don’t think it’s a very good buy for me personally. If we get down into maybe the $5 or $6 region, I would definitely consider starting a bag there because, like Doge, I think Apecoin may very well lead the pack. Dogecoin, Apecoin, and Shiba Inu are the front-runner hype coins that could signal the start of a new ball run. I’d like to simply make the best of that situation.
The overall market today is down 4%. It’s a lot right now. We’re heading down to that 1.5 trillion dollar mark, and we could very well drop significantly more from here. If we do take data from the last bear market, we can definitely still drop another 50% or so from here. I would say it’s unlikely that we do drop significantly below that $29,000 mark because there is a very high number of institutional buys that happen there. We really have no idea what’s going to happen, so please do expect the very worst. Plan for the best, but expect the very worst. Don’t dump money you can’t afford to lose into the market because you may very well lose it. It definitely could happen.
Please do remember that we’ve got the liquidations coming in at 3.5 billion dollars. People are getting wrecked again. In my opinion, this is because people are going along in this market, which is just wild. Leveraging long in a market like this where we have the market pumping on bad news like inflation data, and then the market dumps the very next day with nothing that changed. So, in my opinion, I’m staying away from any leveraged trading right now.
The crypto greed and fear index is at 18 today, which in my opinion is quite exciting. The lower we go, the better the opportunity in the market. I know I’ve said this a lot and I keep saying this when we are in these fearful states. Every time I have ever bought in extreme fear, it has turned out to be an amazing trade for me.
Anyway, let’s move on to some news today. Top crypto analyst wards traders that have Bitcoin flush below $30,000 is imminent. Like I said with those stop losses, I think this is a very likely scenario, so maybe put in some buy orders here or just simply wait on the sidelines ready to pounce at a price that you think it’s worth now.
One thing that I did see that was quite worrying was that LUNA dropped 20 in a day as whales dumped the Terra’s UST stable coin. People are worried that this could cascade an effect and be very detrimental to the UST stable coin. I hold a lot of my money on anchor protocol, so this is definitely worrying.
With that said, Tron has recently released their own stable coin which is basically a carbon copy of this whole ecosystem Luna’s got going on, and this could be a way to actually protect yourself or maybe de-risk from having all your money on one platform. I am definitely considering this. I haven’t decided yet because I’m a little bit iffy with the whole Tron network. I’m a little bit worried that they’re not, you know, I don’t know, safe or they’re not going to do exactly what they say they’re going to do. I don’t know. That’s just my personal opinion, but you guys should definitely go out and check that out now. With all of that said, let’s move on to a little bit of bullish news so we can feel a little bit chilled in this market. First of all, let’s talk about what Whales are accumulating. These are the coins that huge Ethereum Whales are accumulating right now, one of them being Apecoin. So that’s being accumulated as we speak, and could be a very good opportunity here. A Loopring would be another coin that’s being stacked here, an Ethereum-based token that allows for building decentralised exchanges and using zero knowledge proofs. According to the whale-tracking service, the average Ethereum whale within a top 100 list has an average token quantity of 37,800 LRC tokens worth $26,000.
Another one of these coins is API3, the native token for the API3 project, which aims to connect traditional application programming interfaces to the blockchain world. So there’s very exciting stuff there and definitely stuff that’s needed on top of this. We have the streaming service order token Audius. We have the social token platform, Chiliz, decentralised finance protocol Yearn Finance and smart contract platform Fantom.
On top of that, of course, people have the USDC stablecoin and USDT. They’ll be stacking this in order to buy the deep, which is exactly what I am personally doing now.
Moving on, we have Google actually forming a Web3 team because they see a tremendous potential in demand for tech support for crypto. Definitely just another step towards that global mass adoption that we’re looking for. Another thing here is that we have the Qualcomm CEO saying Metaverse is going to be a massive opportunity going forward. Definitely research this more. It’s always good to see huge CEOs and people who are very profitable in these markets.
Otherwise say positive things about the metaverse crypto blockchain in a moment like this. So lastly, we do have some good news here. Instagram is going to support NFTs from Ethereum Polygon, Solana, and Flow. Now I’m stacking my Ethereum, I’m stacking my Solana, and there are potentially two other projects right there that you guys can look into and stack if you want. I think this is just another step towards the mass adoption of NFTs, which is definitely something that we want in this crazy, crazy market. That said, I do hope I provided you with some value. Hopefully, I calmed your nerves.
[This article is a transcription of a video made by Conor Kenny]
Original video: https://youtu.be/jTUNMXyftYE ]
