‘I lost about 80, so 8 out of 10, but you’ll notice that of my two losers out of every 10, I probably lose like 1.5 versus, you know, the one that I gain on a winner. So it knocks out about 3 total. I’m making about 7 out of 10 with that.’ – Gareth Soloway.
Bitcoin has shown bullish action as it trades for $23,071 at the time of writing, up 12% in the last seven days despite Tesla making headlines for selling 75% of its holdings. The crypto market at large has seen bullish action in the past week as the market cap sits above the $1 trillion mark. Jet-Bot, which is the most popular crypto trading platform, supports both spot and futures bots trading crypto on Binance. It allows you to earn APYs ranging from 200% to 2,000% without taking any risks. The average monthly profit is +21%/month. You don’t need to transfer funds to the platform. You hold your crypto in your own personal Binance account. So You can connect your Binance account to Jet Bot platform via secure Binance API connection. Copy best traders and follow all their deals automatically.
Trader and analyst Gareth Soloway has been warning for weeks now that a pump is coming, calling for bitcoin to reach $25k to $28k but then to expect a crash where bitcoin can reach the $12k range. If it gets really ugly, it can go below $10k.
As a guest on the Crypto Factor podcast, Soloway didn’t change his tune too much, but he did add some levels he’s looking at now which can indicate a bull run past the $28k level. Gareth also revealed all the coins he’s interested in and his strategy for taking profits.
‘I think we’ll head up to this $25,500 level. That’s the pivot low from the Terra Luna collapse over here to me. That’s the next big level, or at least the next target.
I do think there’s a chance we go through that, maybe all the way as high as about $28,500. But again, for me, at least, I’m in the position where whether it’s $25,500 or $28,500. I’m not thinking that we get through that high level and I think there is still some more downside now. I’m still currently long on bitcoin copy trading. I did take some profits today. I took my profits there. Avalanche, I took some profits there, but I still have some Ethereum, I still have some Bitcoin, I still have some Cardano, Polkadot, Chainlink. I’m still riding this wave, but it’s not a long-term play for me; instead, it’s a short-term play up to these resistance levels, where I’ll look to take profits and basically rinse and repeat. That’s what I’ve done for so long. It’s worked out very well.
The few things that bother me about the potential low being in is that we still haven’t seen enough disruption in the overall crypto market, so you know, you go to coins, they’ve all been discounted, some of them 95%, some of them 90%. Ethereum is down significantly, although the bounce has been just absolutely awesome on Ethereum. But to me, I look at that sector and I’m like, “How can this many coins still exist?” And if this is the bottom and we’re headed up, how does that work? ” How do we have so many coins in the system at that point?
So for me, that’s one of the issues, and also, looking back and comparing it to the dot-com era, you haven’t seen that full capitulation. I mean, we did see fear when we were below the 2017 highs. But we didn’t see that all out, like throw your hands up in the air. Crypto’s over kind of mentality, which is usually what notes the bottom. In fact, in 2018, it was very similar to what we saw. We saw this kind of, oh my goodness, bitcoin no longer thought, and then that was the bottom at $3,500. So that’s an issue.
Then my other issue would be that even though I do think the Fed, like you said, is going to essentially stop hiking by later this year and probably even start easing in 2023. The question is why are they doing that. My guess is you’re starting to see a really destructive event going on in the economy right now. If you see the Nasdaq starting to really collapse down, I don’t think the Nasdaq’s bottomed by any stretch. I think it has to go down 40-50% at the very least. Then we’ll see a pivot in bitcoin where it starts to strengthen when the Nasdaq and stocks actually go down, which I agree with; I just don’t know if this is the time frame where that happens.
So I think that, you know, it’s definitely a possibility. If there’s one thing you know, just like in Game of Thrones, if there’s one thing I know, I know nothing. Kind of like you know nothing, John Snow, right. You have to respect the charts because they’re the ones that are always right and you just don’t know. For me, I’d be amazingly surprised if all of a sudden it’s the new bull run and here we go to the upside.
Now, I will show this. I do have a level that I’m watching. If we take out this level and confirm it, then I would tend to agree with you on that right. So, if you connect the high from $69,000 to this high, you’ll notice that this line is currently around $30,000. It will slope down right into this $28K area, probably in about a month or so. If we somehow get above that, then that is a breakout on the charts that would get my attention. I think that would be the one case where I would say, okay now I actually kind of do believe that the bottom is in and now we could go back to $69k, $70k, $80k, $100k on bitcoin, but until then we’re still in a pretty steep downtrend.
If you look at this move, even if we go up to $25k, $26k, or even $28k, that’s all an inside bar bearish pattern from this move down, or better yet, even from this move down.
The last thing I’ll just mention is that I still have a measured move where you take this high to this low right and then you have this consolidation pattern right. We have this kind of sideways channel. Then if you take that same distance from here and you extend it out, you actually get right around twelve thousand. This line is the same as this line, and that gives me that kind of bottom area.
Again, anything can happen and that’s the beauty of investing and why it’s so freaking fun, of course. But for me, I’ll take that opposing bet. I still think we’re going to $12,000-13,000. Unfortunately, I even think there’s a chance we could go lower, but let’s take one step at a time.
So I think that you know, maybe the top 50 survive. Maybe you know, who knows. There will be new ones that have great use cases that come out just like new companies come out all the time.
I want to see that period where anyone speculating on the thousand and one cryptocurrency by market cap that needs to be wiped out. That can’t be in the system anymore unless there’s a real use case for it. People will argue that’s right, this one’s about cats or this one’s about dogs. For me, we’re in the real world here where you actually need to have some sort of use case that’s legitimate.’
What do you think of Gareth’s thoughts here? Do you believe bitcoin will break through the $28k level, or do you believe it will remain near $10k?
[This article is a transcription of a video made by Only The SAVVY]
[Original video: https://youtu.be/g1vTj0XYr4Q]