Today we’re going to be discussing exactly what I think’s going on. I actually believe it’s all over for crypto, where I think we’re going next, and some of the coins that I have been buying today and very recently. And Jet-Bot is the best crypto copy trading platform to earn money online safely! This is a matching platform where you can copy best traders on Binance 24/7 automatically.
The overall cryptocurrency market is red right now. Even though almost all of the coins across the board are red, only a few of them and one coin in particular that we spoke about recently, which is great to see. However, the overall market is definitely down.
If we do head over to the bitcoin chart, we can see that bear flag that we were talking about. We are below it right now. So the bearish scenario here would be for us to actually come up, hit it and then head downwards. That would be a very bearish scenario. The important level that I am watching the closest is this level of around 38,000. If we break below that, we then invalidate what I was considering an upward trend here. If we break below it, this would be very bearish in my eyes.
As you know, I’ve been de-risking a little bit, getting rid of those more risky plays, holding more stable coins and also just continually buying the dip of my personal long-term holds, which I will continue to do even if bitcoin goes down to 20 000. Right. That’s what I want you guys to understand. I’m long term. I’m going to continually dollar cost average into bitcoin and my long term holds. With that said, I don’t think I mentioned that I’m not a financial advisor. I’m just a random guy sitting in his room, so never make any financial decisions based on my words.
Let’s head over to the crypto greed and fear index at 24 today, so we are back in extreme fear now. I actually quite like these scenarios because I am currently very heavy on my very long-term holds and my stable coins.
When we head into extreme fear, these are buying opportunities for me. Now, Bitcoin is going to 20. I think that’s a possibility. I think it’s unlikely, but if it does again, I’m buying those dips. Every other time in bitcoin’s history that we were in extreme fear, like we are today, we have had a significant bounce eventually from that point. According to history, these were always great buying opportunities.
Now what is going on? Why is the market in free fall? Why is it going down? Well, first of all, we got today, so for most taxpayers in the United States, the deadline to submit their 2021 federal income tax return to the Inland Revenue Service (IRS) is April the 18th. What people are speculating is that there are people selling in time for this deadline for tax loss harvesting and things like that. This could be playing a very big role in the fact that we are dropping today of all days.
On top of that, there is still more risk of interest rates going up. Of course, this is fear, uncertainty, and doubt in the market, but I think that this is the exact reason we have bitcoin. The exact reason why I think it’s a hedge against this sort of thing. I think long term, this is bullish for crypto, but there is no denying that this is bearish for the overall market, and bitcoin and crypto are very much tied to the overall market right now.
In this article, we see that Federal Reserve Board member Christopher Weller said Wednesday that he expects interest rates to rise considerably over the next several months, so if your game plan is to plow money into the cryptocurrency market, you may see much better buying opportunities coming forward. There are no guarantees, but it’s definitely possible.
The way I’m personally navigating this is simply this: I have my own pool of stable coins, which I use to buy my long-term holds. As the market goes down, I gradually put these in. I never dump all of my money into the market. I never go all in on the days where we have significant pumps. I take a little bit of profit out of the market and wait for the market to go down. If it never goes back down, I’m okay with missing out on that 10% to 20% gain. That’s my own personal game plan.
On top of that, we have had articles coming out from big publishers. This is Forbes saying absolute disaster, serious crypto price crash warning issued after Bitcoin, Ethereum, and BNB go into free fall.
You know, right now bitcoin is currently sitting at $39 000, right at $39 000. People think we’re in a bear market right now and bitcoin is potentially bottoming out at $39, 000. I don’t think that’s free fall. In my opinion, that’s not even a 50% drop. We’ve seen significantly bigger drops than this in bear markets. It’s definitely still a possibility, but I think free fall is a little bit of an exaggeration here.
With that said, there’s this tweet here by Dan Held. Over time, bitcoin keeps falling, tumbling, and plunging in quotation marks upwards over time. If we check out these images that he’s posted here, we see bitcoin fall below the $400 mark, down more than percent from its all-time highs. Bitcoin falls below $4,000 as crypto continues to plunge, and now bitcoin briefly tumbles below $40,000. This is why the long-term picture is so important in my eyes. People were feeling the same way they do today back on April the 10th, 2014, and exactly the same on November the 25th, 2018. I’m telling you it’s just a repeat, even if it was the same on January 10th, 2022.
Of course, Bitcoin could crash and burn to zero, but you have to go out and do your own research. I see this as a buying opportunity. With that said, what have I been buying recently? Today I bought the dip in bitcoin at just under $39,000.
And exactly what I said to my group when I bought this this morning was that Bitcoin is at a very pivotal deciding point right now. If we do drop below the $38,000 mark, I think that will be bad for the short term. Of course, we’ve got this support down here at around $35,000, but for the short term, we could easily freefall down to $35,000. So do be prepared for that. I actually entered some shorter-term trades around here in case we get a bounce, and I have a stop loss sitting at just below $38,000. In case we do have that free-falling drop come in, it’s definitely a possibility.
The other coin I, of course, bought was Etherium. It is slow, it’s expensive, but it’s been around for the longest time. I understand it to be one of the most expensive in space. I am almost as comfortable buying Ethereum as I am buying Bitcoin. It’s as simple as that now. If the market continues to drop, I may buy some more of my longer-term holdings, but that’s exactly what I’ve bought today.
And one more interesting coin that I brought to you guys recently was the Efinity Token. This is an awesome project that I’ve recently started to invest in, and even today, even though the overall market is down 4%, infinity is actually up 2%, so that’s the kind of thing I want to see from these strong players.
With a smallish market cap, there’s definitely room to grow and definitely a project I’m comfortable with dollar cost averaging into. So with that said, I do hope that I provided you with some value today.
[This article is a transcription of a video made by Conor Kenny]
