Bitcoin Prepares For $50k (WATCH THESE Key Levels)
Going out to the weekly timeframe, we are technically still bullish on the weekly as long as we hold above the weekly ribbon, which is all the way down at $35K. So, I would say yes, we can go all the way down to $35K. We can get actually a correction of 26%, shave off even more than $10,000, and still remain in a weekly bull market. So, I think the answer to your question is yes, we can see a huge correction here and still remain bullish. Hey, everybody! It’s Monday, and you guys know what that means. Carl from The Moon has joined me here today to talk about Bitcoin and where the heck is it heading to. – Carl, how are you doing today. – I’m doing fantastic.
We’ve seen bullish crypto markets for the past few weeks. Let’s just hope that it continues. And that’s what we’re going to take a look at in the charts later, right? Yeah, absolutely. You know, it’s funny because when we were talking about $100,000 Bitcoin this year, you know, if you go back about a month ago, people were killing us for saying that we thought that, you know? “No, it’s a bear market. We’re definitely in a bear market.” You still have people that’re saying we could be in a bull trap, which I disagree with, but what does that kind of been like for you watching the sentiment change? Yeah. The sentiment is very, very different in a bear market than any named, so to speak, bull market. So, I can see the dislikes and the comments, the negative comments, they always increase when prices are going down.
It’s simply because people are “losing money”. I mean, of course, it’s portfolio. It’s only lost if you actually realize the losses. But when people see their portfolio go down, they see Bitcoin go down, they see Ethereum go down, people get emotional. And I think that their like and dislike ratio on YouTube videos, and also negative comments over on Twitter, like it’s very very obvious if people are bullish or bearish. And right now it’s turning back to bullish. But in the deepest trenches of the “mini bear market” we saw, there’s like a small bear market, I could see a lot of emotional people, but– But, yeah, it’s a very, very good way to check sentiment actually. – The dislike ratio on all YouTube channels in crypto. – Yeah. I can see the same trend on all of them. And I saw your like ratio now in the past few days has been incredible.
Yeah. And the same is on my channel and most channels, I guess. So, people are back into bullish mode right now. Well, you know, people don’t like flip-floppers. You know? People don’t like people that just ride whatever is current, you know. “Well, we’re definitely in a bear market right now because prices are down.” Or, you know, prices are going up, “They’re going to go up forever.” And then these people they just change on, you know, the turn of a dime, but for people like us, we’ve held, you know, we’ve held our belief that Bitcoin is going to $100,000 this year even when it looked like that wasn’t very likely. And now I think we are seeing that momentum carrying us back up there again. I think that people respect that. – People respect that we stood by what we said. – Yeah. Yeah. I think, you and me, we are more like seasoned veterans. We’ve been in this space for a long time. So, when Bitcoin goes up, we’re not going to scream “Lambo” – just because it’s going up. – Yeah. And also when it’s going down, we’re not going to go applying for a McDonald’s job – because we’re going down. –
No. We know that it’s going to go up and down, but on average, Bitcoin is actually going up every single year. And the same goes for crypto in general. Crypto is a very bullish market. And even if we see a 20% dump in one day, that doesn’t mean that it’s the end of Bitcoin. – So– but, yeah. People learn with time. – Yeah. Absolutely. Well, let’s look at the charts. Let’s see what the charts are showing us about Bitcoin right now. Definitely. Alright, guys. This is the daily timeframe for Bitcoin. And there are two things I want to point out here. First of all, the red line you can see here is the 200-daily moving average. In my opinion, this is an incredibly important moving average to hold above. Right now, we already technically have two or maybe even three retests of this moving average, which means that Bitcoin for now seems to be holding above this moving average, confirming a break above the moving average, which is very healthy, which is very good. So that’s the bullish thing I can see right off the bat here.
And the other thing that is bullish is obviously the fact that you can see that we’re clearly in an uptrend here. And the trend is your friend, as any trader will tell you, and any investor really. So, we are in a clear uptrend. If you go into the smaller timeframes as well, like, on all timeframes basically right now, we’re in an uptrend. Now, one thing we have to point out, obviously, is this big rising wedge staring us right in the face. And for traders, this is a bearish pattern because they tend to break down more often than they break up. That’s just something you have to learn when you learn technical analysis. And there’s another thing we might have to consider here. And that is the fact that in the RSI, we are getting some bearish divergence here, which basically just means that in the RSI, the relative strength index, we’re seeing a high and a lower high, but in the price, we’re seeing the exact opposite, so it’s a divergence. And this is called a bearish divergence. And what this indicates usually is that the bullish momentum we’re seeing is running out and that we might be going sideways for some time or maybe even a correction. Obviously, this is never guaranteed. And any trader knows that even when you have five bearish signs, especially in Bitcoin, we could still see a pump to the upside, so I wouldn’t say that this is a short signal. Definitely not.
Especially when you’re in an uptrend like this. Shorting an uptrend like this is basically going against basic technical analysis. But what I can say is if we do break the support here from the rising wedge, then the likelihood of us coming down in a correction will be significantly higher. The target out of the rising wedge is the bottom of the wedge. So, let’s say we do break down here. Then we could actually see a continuation or a correction down to $37,600. That will be the technical target if this plays out. So, those are like the big daily timeframe things that I am seeing for Bitcoin right now. So, do you have any questions about that? Yeah. So, when we’re looking at Bitcoin, let’s say it were to break down out of this wedge, and it were to go down, let’s say, like you said, about $37.5K or something like that, that’s a $10,000 loss from where we’re at right now. If we break down out of this wedge, do you think that that really could be an indicator that this is a bull trap? And that we could be going down, you know, further, and we’re going to lose momentum? Or do you think we can drop $10,000 off the price right now and still head back up by the end of the year? Okay, that’s a great question. So, I think that– of course, it’s possible that we are in a bear market and that this is just a bull trap and we’re going to continue to go down. This is always a possibility.
However, in my opinion, I think it’s very unlikely. I think all the fundamentals are pointing bullish. Like, the stock-to-flow ratio model is pointing towards $100,000 Bitcoin before the end of the year. Approximately, you know. So, I think that fundamentally, on the bigger timeframe, that doesn’t make sense, but from a technical standpoint, then, of course. I mean, that could definitely be a scenario we have to take into consideration. But I do want to bring up the daily EMA ribbon. Looking at the daily ribbon, you can see that we can actually fall all the way down to approximately, let’s say, $42,000, $43,000 and still remain in a daily healthy uptrend according to the ribbon. Going out to the weekly timeframe, we are technically still bullish on the weekly as long as we hold above the weekly ribbon, which is all the way down at $35K. So, I would say yes, we can go all the way down to $35K. We can get actually a correction of 26%, shave off even more than $10,000, and still remain in a weekly bull market. So, I think the answer to your question is yes, we can see a huge correction here and still remain bullish. And all of my subscribers know that I am actually right now still in multiple long positions actually on Bitcoin and Ethereum. Every single day over on my channel, I’m updating my audience about my trades that I’m holding, and I’m still holding them open. But what I did tell my audience earlier today is that if we do break down here, then I am going to start taking a bunch of profits off of my Ethereum position and also my Bitcoin positions because we could see a bigger correction. But this is leveraged positions, so it’s short term. I’m not selling my spot Bitcoin at all. Like, there’s a big difference there, right? If it’s a short-term trade, you can take profits. If you’re in the long run for like holding, then it makes no sense to sell even if we were to break down here. I think that keeping your long-term holdings safe in cold storage, just keeping it there, forgetting about it, that is the game. Well, that’s the way to win in Bitcoin for the long term. – Yeah. – Yeah. So, you have to differentiate yourself. Are you a holder? Or are you a trader? Or are you both? If you are both, it’s very important that you actually differentiate your different portfolios and your different actions based on the timeframe. Yeah, absolutely. That’s something we talk a lot about on the channel, which is there’s definitely a difference between investing and trading. You know, you’ve got to know what you’re doing in the trading world. And listening to people like Carl explain the charts to you is definitely a good way to get a head start. Well, Carl, you know, I think that’s going to wrap it up for us today. We’ve taken a look at Bitcoin, where it’s at right now, where it can be going in the near future. Anything you want to leave us with? Well, I think that altcoins are right now doing well. And I think it’s mainly because Bitcoin is doing well and Ethereum is doing well. If we continue to see Ethereum and Bitcoin lead the way like this, then I do believe that this altcoin season will continue for the next few weeks here. But obviously, if we do see Bitcoin correct, then I am 100% sure that Ethereum will also correct, which means that altcoins will also get a correction. – So, if you want to buy and sell altcoins, – Yeah. you always have to first look at Bitcoin. I think that’s very, very important. And that’s just the side note I want to leave with. And another side note is I think this video can easily reach 8,000 likes. – Easy. Easy. – Easy. Yeah. They can do that for sure. BitSquad, you heard Carl. Go ahead and make sure to hit that like button to help this out. More people will see this content when it’s got more likes. I will be bringing Carl back on next Monday to talk about Bitcoin, maybe some Ethereum. You guys let me know down below in the comments, what do you think Bitcoin is going to be doing here in the short term? That’s all I got. Be blessed. BitBoy out.