Let’s take a look at the huge historic Bitcoin buy signals and, of course, the death of cryptocurrencies to take a holistic overall picture of the markets. So, let’s move across to what’s going on in the market at the moment stocks slide on Wall Street as inflation worries persist 85 percent of the stocks are down. So, this is the benchmark for the S P that’s why we’re seeing the prices of the S P come down. We can see that overnight down two percent. It got rejected at our gain 50 percent level, so no surprises there for regular viewers that are understanding, this gan tool. So, we’re looking at highs and lows getting midpoints and that gives us an idea of where we could expect the market to get rejected at which is really helpful. If we’re entering positions, especially, for trading, then we look for profit-taking levels. So, it can tell us in advance this might be an area that will see some resistance.
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It could be a good idea to take some profits or in the flip. It might be a good area to enter other positions whether it’s long or short so it’s just an idea using that tool and that gives us an idea of what’s happening in advance from when this information comes out and the other historic stuff that we’re seeing in the markets. These big headlines about the history and a lot of the extreme fear in the market are that US consumer confidence slipped to its lowest level in 16 months now. Of course, this came in yesterday.
But the main point here is that we just want to see the numbers the conference board said Tuesday the consumer confidence index slipped to 98.7 in June down from 103.2. Essentially, it’s gone down for the second straight monthly decline to the lowest levels. So, the main thing we’re hearing all the time is that everything’s bad, everything’s bad, everything’s bad. It’s got to get worse now we looked at it yesterday. Some of the biggest google search trend words for Bitcoin being Bitcoin bottom, we’re seeing that for recession as well just looking at five years here because we have had some big recession talk in the past look at the search trend the previous week. So, the last two weeks, we had the highest search volume for the word recession. Now we’ve come off that quite a lot if we’re looking at a five-year chart which I’ll leave on just for now. The second previous highest time for that or that the highest time in the last five years was at the covert crash low, so looking at historic words here stuff that the masses are looking at. They believe we’re going into a recession.
They believe the worst is still to come and I vastly disagree with the worst is still to come. We’ve talked about this the feeling will possibly be the worst to come. But, in terms of the losses it doesn’t take a genius to open up a chart and see that. The current losses are the worst that we have had so anything that happens from this point down is not that big of a deal in terms of a percentage drop. I know it’s going to hurt a lot of people the portfolios are going to be down from. If you bought Bitcoin at 21 000 and maybe we go to worst-case 11 or 12 000, it’s still going to be a 40 drop and that’s going to hurt a lot of people but from the tops where the majority of retail bought in between that fifty and seventy thousand dollars just choosing any point up here.
They’re down now about seventy percent, so if that drops a little bit further that’s going to be down 80 percent. That history is a pretty reasonable area for Bitcoin now. We’ve looked at forow on Bitcoin, we’ve looked at in the past that I believe my opinion of course here on the channel is that we’re in a bottom range now whether that low comes in at twelve thousand fourteen thousand fourteen and a half here sixteen thousand or if seventeen and a half thousand on Bitcoin is the low personally. It doesn’t really matter think of it in the flip. The top-selling out for profits, if you sold out at 46 000. Sure the absolute peak was 69 and you could have said I should have just sold at 69. you have no way of knowing because at the time everyone was saying it’s going to 100 it’s going to 250. The biggest and brightest minds in technology your Cathie Wood of ARC invests. Your other big names that have billions of dollars are talking about 250 500 000 Bitcoin now. The same thing is happening to the downside we have talks from some of the most bearish people of saying ten thousand three thousand eight thousand dollar Bitcoin.
So, I think the same thing is happening to the flip side again, so history shows us that doesn’t matter if you’re selling somewhere near the top you’re probably going to be better off in the longer term. This is for Bitcoin, of course, because we know overall some of the other markets do trend up like the traditional markets trend up over time. So, you just have to hold in there and wait so either option to me it’s not about being right or wrong. It’s about what suits you and your portfolio did you want to sell the top or did you want to buy. It 50 grand and then hold it for the next 5 or 10 years. No, one’s right or wrong. It’s just whatever suits you. Personally, I prefer to sell these because of the drawdowns being, so great the drawdown just means from the high to the low in the cycle.
The previous cycle was an 84 drop from high to low. Now I don’t really want to be stuck in those for my cryptocurrencies, my altcoin positions that’s the first piece of historic info. We’re looking at just these google search trends recession at near all-time highs for the last five years. If we go back to 2004 to the present. I’d still say covet is probably one of the highest. It was pretty much the highest level. We had for recession and if we take a big enough look then the market is still going up but going down to a shorter time frame, we can see that we’re now trending down from the world recession. So, these are some of the highest levels in history even more so than the GFC as well. So, in terms of the lows. We’re probably getting somewhere very close to it now. The other thing I want to look at for the historicness of these buy signals for Bitcoin is looking at this here looking at glass nodes and some of the data in terms of the moving average where the price is on Bitcoin and the price actually falling below the 0.5 of the mayors multiple an exceedingly rare occasion that hasn’t happened since 2015. Now being honest with you here, I don’t use the Maya multiple.
This article is a transcription of a video made by Jasson Pizzino
Original video: https://youtu.be/bn5E2SXEoDY