Things are looking a little bit red today, so we are, of course, going to go over exactly what you need to know to understand why this is happening and where I think we’re going next. And especially now when the views are down substantially because most traders have left the market, most speculators have left the market, so it’s just left me and you stuck here going through the trenches and waiting for the next time we get to make a bunch of cash. But, honestly, the creative and smart people don’t wait, they register at copy trading systems and follow the best trader’s deals automatically with Binance trading bots. This is what Jet-Bot is. Jet-Bot as a copy trading system has a perfect welcoming option for you. You may get 3 days trial access and earn from 200% up to 2,000% APY. Try now and start your career in crypto.
Let’s head over to the crypto bubbles and look at that we’re back in red. It’s red across the board with only WAVES of 11%. That coin pumped loads yesterday. I’m not sure of the reason. One thing that’s happening right now, there is an opportunity here. The market keeps going down a lot, and one thing that I’m personally dabbling in is shorting different coins that have pumped a lot, but with 1x leverage. Don’t go out and do that because it’s so degenerate. You’ll probably lose money, but I’m willing to try this out because I want to make the most of this market whether it’s going down or up. A caveat to that is that, of course, I still have my long-term bags. This doesn’t mean I’m selling any of my long-term bags; it’s just trying to make the best of any market situation. I didn’t do that in the last bear market, so that’s something that I’m looking into doing right now. Obviously, something you guys can go out and research yourself if you fancy looking into that, but across the board, red.
If we do check out the bitcoin chart, of course, that is what governs what’s going on and almost exactly to a point, I predicted it to a T, not joking not a hawk, one of the scenarios that I was pointing out was likely to happen.
So what we saw was this nice pump, we hit a level of resistance, we got rejected, we didn’t manage to break above it, which would have been nice, but we got rejected by it. So now we know it’s acting as a resistance and what we don’t want to see here is to hit here and be rejected and come down. That’s what we don’t want to see. That would be a more bearish case. We’re going to be looking directly at around the $28,000 mark and then lastly down at that $25,500 mark where we hit that peak here. One thing I was pointing out is that when we have these sorts of big wicks coming up and then consolidating sideways, we often see a dump coming afterwards. One example of that would be right here. We saw a wick here consolidating sideways downwards and we see this play out a lot in the bitcoin chart. You just need to look for it, but what we’re seeing here is a wick here.
If we do get rejected, we will probably head downwards, and that’s the most likely scenario given the outlook on what’s happening in the overall macroeconomic situation of the world. We’ve got a war going on in Europe. We have Rona Rona season isn’t over yet. We also have inflation. All of that sort of stuff is still happening right now. As gas prices are rising, people have less and less money to spend. So we are in a bear market, potentially heading into a recession, and these are the kinds of things that we have to account for and put into our game plan. For example, I’ve been buying the dip like I’ve been talking to you guys, but I was buying the dip a lot heavier before I kind of made a decision right. We are definitely in a bear market now, so I am still buying the dip. It’s just slower right now, slower with smaller amounts. By all means, it’s definitely going to 20k, it’s definitely going to 10k, and by all means, it may very well do that, but I will continue to dollar cost average into the market because I personally have no idea where it’s going to go. I don’t want to miss out on potential gains. So when I’m dollar cost averaging, I’m using small amounts of money that I can just continually do. I can sustain this for the next few years if that’s what’s needed.
Right now, looking kind of in the middle, we are back over 30,000. First of all, I do want to see us break that $32,000 mark. First and foremost, that $34,000 mark, and I’m hoping we hold that $28,000 mark here, or I’m worried we’ll go lower anyway.
Moving on, we have loads of liquidations. In fact, we actually had 590 million dollars liquidated from the cryptocurrency market in the past 24 hours. People need to understand to stop getting too leveraged too quickly. People start to get leveraged. Then they get liquidated when the price goes down. We see this timing and time out and that will add to the volatility of the market. So, if you’re going to use leverage, which you can, and I personally do, stay safe out there, but stay super conservative. Like I said, I’m practicing shorting the market with 1x. That’s the sort of thing that you can optimize leverage for, or if you have a certain amount of money on one brokerage and you don’t want to move it all onto another one, you can do something like 2x leverage. I’m seeing people using 25x, 50x when they have no idea what they’re doing. It’s absolutely crazy.
If we do head over to the CoinMarketCap, we can see that today we are down almost five percent, one point two-four trillion dollars. We were around three trillion dollars before. So this is intense right there. It does seem like there’s going to be more blood in the streets as we go forward. Most of our long-term holdings are bitcoin and ethereum. But why is this happening today?
Of course, we still have the fear of inflation happening, very much the biggest worry in the market right now. Some people are speculating that one of the main reasons why we’re dropping now is because Jamie Dimon, the CEO of JP Morgan, is warning of a coming economic hurricane that requires preparation. JP Morgan is positioning its balance sheet very conservatively in case a recession incurs You know, I said the storm clouds, but I’m going to change it to a hurricane, he said. Basically, they think it’s going to get much worse, so they’re holding a bunch of cash ready to buy the dip, ready to make money if things get worse. That’s what these bankers are doing. They’re not saying the recession’s coming and that’s the end of the market, it’s the end of cryptocurrency, all of that sort of stuff. They’re preparing for the opportunity that a recession creates. That’s the way you have to look at this and just remember,
JPMorgan strategists predict 25 gains for bitcoin. This came out just about three days ago. So please remember that these same people who are saying it’s going down and things are going to get much worse are still betting on things like bitcoin going up, so do keep that in mind. Despite the drop, bitcoin is still larger than all of these companies:
We also have more than 12 million bitcoins that have not been moved in the last 12 months. The Bitcoin circulating supply has never been more illiquid. Now you can see that however you want. For me, that seems like very bullish news to me. Over half of all bitcoins that will ever be in circulation haven’t moved in the last year because people are simply holding on. The way I see it, Bitcoin is an all or nothing game, right? It either goes to zero because of something like a hack, or it goes to something like the market cap of gold. That’s what I’m betting on. That’s why I’m dollar cost averaging into the market with money I can afford to lose because it can go to zero or it can make me super wealthy. That’s how I personally see it. It’s not financial advice.
Another problem we’re seeing again is Solana’s blockchain was down for four hours. Solana is just getting smashed, and honestly, I do think it’s part and parcel of creating a new blockchain that’s massive, but I do think they took on way too much too quickly. They grew way too quickly, which is a shame because they could probably have had more room to fall, if they do continue these crashes.
Like I was saying the other day, another project that hasn’t done the same thing is Cardano, much slower, much more thought going into it, much fewer crashes, and all of that. So we could see a Cardano rally for the coin itself and for the ecosystem coming into play if we do see another bull market here again one day, hopefully. We are now seeing some more bullish news: people are buying chipotle with cryptocurrency, which is just another step toward mass adoption. We also have the Canadian Bitcoin ETF, which has been aggressively accumulating 13 000 bitcoin in the last six weeks, so here we have the accumulation of the amount of bitcoin they hold with the price going down.
So you can see how people are looking at this and seeing it as an opportunity. Like I said, Canadians are buying the dip as their bitcoin ETF holdings reach an all-time high. So people are still bullish about what’s going on.
[This article is a transcription of a video made by Conor Kenny]
Original video: https://youtu.be/PWiaMjpD1NM ]