We are answering the question are we wrong about the crypto bottom or is there further to go for cryptocurrencies? The main question that continues to come up is now a good time to be buying alts as the markets have dropped over 70 and obviously in some cases about 90 percent. Let’s answer those questions.
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We’re looking at the crypto bottom, bitcoin bottom is now a good time and, of course, this is not the time that I like to be investing into altcoins. We have seen the bloodiness of the downtrend and every time we continue to buy or anyone continues to buy altcoins on the way down. They’re basically cutting their hands on the falling knife so this is the chart of bitcoin obviously. You can see that every time there is a buy the dip call anywhere over Twitter or YouTube. You can basically see for any day that was read there’s usually someone saying at least at that stage of the bear market near the top here people saying buy the dip don’t worry it’s going to be fine by the dip the market never comes back to a previous old all-time high these were the things that were said over six months ago and of course have been repeated for years. But, of course, now we find ourselves underneath the previous old all-time high like we looked at in the last couple of videos here and of course the mega live stream we did on the weekend um and i’m not seeing that the bottom for crypto currencies is in bitcoin. On the other hand, it has some good signals for a potential bottom. But we’ll never know. If it’s the bottom like the final bottom until after the fact no one can call.
If that is going to be the exact bottom but we can get a rough idea of when the bottom should occur by looking at a timing which is at the timing of the market. I do hear some people say that you can’t time the market. I think it is much easier to time the market than it is to call for an exact price because we have cycles where you can see what has happened in the past. It gives us a rough idea of what we think is going to come next. Of course, it’s what we’ve been saying for many months now that we’re looking for a low in late quarter two, possibly quarter three or quarter four. I know it’s a big-time span. They’re about six months old. But we did have six months where we knew the low or had a reasonably solid idea that we weren’t going to see a significant low in the first half of the year by the last week or two. Of the first half which is where we currently sit we also currently sit in extreme fear of the market too. So, we’ve got to take this into consideration when we’re answering that question about whether crypto has it bottomed.
The low is wrong should we have been buying old coins and waiting for those to then come back and give us 100 x’s. Well, we’re still seeing a lot of extreme fear. The answer is to buy when the fear is out in the street. But, of course, we’ve seen a lot of fear. If we’re buying all these cryptocurrencies, all these different altcoins and, of course, bitcoin as well. Then we basically don’t, if you were looking at it in a realistic sense. You, probably, don’t have any money left. If you’re continuing to buy all of these dips and I know we hear it all the time on the internet. There are a lot of people saying buy the dip and they say that they’re buying all these dips. But I, honestly, don’t believe that they’re buying all these dips or if they are. Then they have a lot of other funds and sources coming in to continue by the dips. Then they end up having a pretty bad average price that they have entered with so bitcoin is the first thing that could have bottomed. It could have. I’m not sure if we’re at that final bottom yet. We won’t know until after the fact.
I think maybe we still have some time for this market just to grind. Its way out we did see a good bounce in the last 24 hours to get a weekly close above the previous old all-time high that is this yellow line right here which is about 19 900. So, we did get a good close above that. But we’ve just slipped under it while I’m filming this video. At the moment the next thing, We look at is for the question of the crypto bottom, are we wrong. Well, we can see the dominance here. The bitcoin dominance has taken a sharp drop but this is most likely due to stable coins. I’ve got this little chart up here bitcoin dominance this is looking at the dominance of bitcoin minus the stable coins.
But this one is also minus other cryptocurrencies which are centralized, so I don’t like that idea, however the chart is very similar. It’s basically just looking for the pattern. We disregard the percentages up here. We’re just looking at the pattern of the bitcoin dominance minus these other projects and this is also the pattern for bitcoin dominance minus the stable coins. If it was just the dominants minus the stable coins. We would have this sort of pattern here where you can see the highs of the dominants have been taken out, forget the percentages, remember the highs have been taken out. The dominance is increasing, of course, the last couple of days have shown the dominance drop off just slightly. But, the overall pattern of the dominance is that we are now climbing out of it so with the dominance on bitcoin’s side even if the stable coins were included the money is either going into bitcoin. The price is still dropping. It’s going to bitcoin or it’s going into stable coins which is what is dropping the bitcoin dominance on this chart which includes stable coins as well. I think over time this will eventually break out. We hold some of the significant support levels and we can show some of those support levels right here. So, that’s underneath this zone of about 41 using this chart and we get that to hold up and then move higher this is not in favor of cryptocurrency, so all the other 20 000 altcoins out there.
This article is a transcription of a video made by Jasson Pizzino
Original video: https://youtu.be/cZkfD9z-BkU