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Bitcoin: Was $3,800 The Bottom? $2,000,000,000 USDT Holds Up BTC Price, Too Little Too Late?

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Today in Krypto is the bottom in for Bitcoin. I’m going to look at arguments for and against that thesis. Is Will increasing Bitcoin dominance spell big trouble for altcoins and short term? Are we in for some more price pain or will the Teather gods come out to save us the crypto lark? This is where you subscribe for all of the latest on all of the hottest happening in the wild, wildland of crypto. By the way, if you are new to crypto and you still need help with all of the basics, even like understanding what the heck bitcoin even is or how to safely buy bitcoin or even where to store it. Once you’ve got it, then check out my course. Cryptocurrency explained it will answer all of these questions and more for you. There is a link down below where you can learn more. OK. So let’s start off today with talking about the price action, looking over the charts. First, I want to talk about volume. You see right now, Bitcoin has a volume problem, even though we can see that the price has been on a generally upward trajectory recently. The volume at the same time has been steadily falling off for basically the last month straight. This tells me that we could be in for some short term price pain. It shows that even though the price is going up, that this could be a false price rally since the buyers seem to be increasingly unconvinced by the short term prospects for bitcoin, exhaustion in the markets may be setting in and even being close to reaching a critical point. We really need to see bitcoin close above $7000 to really lure those bulls out in force. We have had five failed tests, a break out in close, a daily candle above $7000. This very stubborn resistance, combined with the volume falling, seems to show that the bulls might be running out of steam in the current market situation. Plus, we are back in that descending channel really from some months back. We thought we’d kind of broken out of it. We seem to be firmly back in that. You can see that we really quite were cleanly rejected at the seventy-three hundred dollar mark, which was the top side of this channel. Seeing Bitcoin now pull back to 58 50 in the coming days would not be super surprising. It is, of course, an area of local support since the big downturn and also the midpoint approximately in this channel. Now a bounce from there, that would be a nice move to see. And of course, to see a confirmation of real bullish momentum. Definitely watch for bitcoin to break and hold above particularly seventy-three hundred. But 7000 would also be a very significant level because closing above 7000, that is likely the candle and really, really need to see to get the bulls excited and to keep it real. I don’t think that the bulls are really going to be in control of the market again until bitcoin crosses back over eight thousand dollars and does so on good volume. Now, that might be the price action that we really need also to get the pre having hyper is into the market to speculate as well. But fear not. Fellow dwellers of crypto land Teather is here to save us. Yes, indeed. Bitcoin’s own central bank is always ready to come to the rescue when the price is down. OK. Though really bad jokes aside. Seriously, the Teather printing presses have been hard at work in the recent weeks, minting a whopping 2 billion dollars more teather to meet market demands and Teather is not alone. U.S. D.C. also saw a 60 percent increase in supply in the same period. Now you can see the USD see chart here. It was a nice steady climb up over last month. Meanwhile, over in Teather Land, they just went on full psycho mode. You see, they just blasted out two billion dollars in Teather in just one day last week. That day, of course, is April 2nd. That 24 hour period saw bitcoin range from sixty-one hundred dollars. All we have to seventy-three hundred dollars. Now, the question we need to ask in this situation was that it was that all that $2 billion did two billion in fresh cash only move it by that much? Or was that just a small portion of the total teather that was minted that went into Bitcoin? Is there’s still more Teather sitting on the side ready to flush in and buy up the market? I really hope the Teather didn’t blow its load too quickly. I mean, hey, look, we all hate when that happens. So much excitement and then you just get to cry yourself to sleep. Leftwards. I mean, a friend told me that’s what happens. I would know personally, of course. But anyway, anyway, hopefully, we will see the new money injected into the market, really continuing to support the price moving forward. There’s a lot of new fiat coming in from multiple places. So great to see that happening. Let’s hope it actually continues to support the mark forward. Next, up, Bitcoin dominance has been in a definitive uptrend since we saw the lows of Bitcoin dominance around sixty-two percent a couple of months ago with the current atmosphere in the crypto markets. I think there is a strong chance that we actually continue to see Bitcoin dominance moving up. The Bitcoin having it is just around the corner and that will likely see a lot of investor money actually go towards just. Bitcoin and also, of course, the markets right now are very uncertain, and in times of greater market uncertainty, investors are likely to choose the safer option, which is, of course, Bitcoin. There will also be a small handful of altcoins like, you know, a theorem and chain link and Kibre Monaro. Those will continue to attract a lot of investor money, but a lot of the highly speculative, All-Points, they could see big, big drops. If Bitcoin dominance continues to rise now, I will consider the dominance uptrend for bitcoin to be intact unless we break and hold below sixty-six percent. Now, if we hit 70 percent, then oh ma’am, altcoins are going to be in big, big trouble. Anyway, it’s time to grapple with today’s big question. Is the bottom in for bitcoin? Was thirty-eight hundred dollars as low as we are going to go? Or are we actually in for a lot more price pain in the markets? Well. Let me share with you a few thoughts for really both sides of this argument. So reasons why thirty-eight hundred dollars may not have been the price bottom for Bitcoin. One interesting factor, of course, comes from the traditional markets and that is that Warren Buffett, he is still sitting on one hundred and twenty-five billion dollars or more in cash. He is waiting for the market bottom to scoop up the deals of a lifetime in the stock markets and bitcoin. Bitcoin has shown a very strong correlation to deter traditional markets recently. Here’s a quick chart just to show you that that shows the price of Bitcoin versus the S&P 500. Now, look. Maybe old man Buffett. Maybe he’s losing his edge. But when he deploys that hundred and twenty-five billion dollars to me and I think to a lot of other people, that’ll be a significant sign that the bottom is in on the equity markets. The fact that he hasn’t yet says that there could be more pain coming in the equity markets and thus potentially more pain coming for Bitcoin. And obviously the biggest factor the bottom may not be in yet for bitcoin is obviously the crisis. Ten million people globally are out of work and they will be for at least a few more weeks in the longer term, the impact of the economic shock could create months of pain. Obviously, I don’t want I just thought to be happening with these are the numbers for unemployment and the drag factory that were going in. Ask yourself this how many bitcoin holders are likely going to need to sell at a loss to cover their bills and maybe even to buy food in the next few months? Yes, there are groups of privileged people who can play the markets at any time, but a lot of holders, they are not in that category. Remember the charts that I shared last week, sometimes about all the new highs that we’re seeing for bitcoin addresses? That is an all-time high for one bitcoin and more at an all-time high for zero points one bitcoin and more being stored in addresses. A lot of new retail buyers have entered the market on the dip. Those same players, unfortunately, maybe the ones forced to sell in the coming months. And the crisis, apart from forcing people to sell, will also likely limit the pool of potential buyers. So people who will be basically more concerned with feeding their kids instead of buying bitcoin. Thus, what we could see is an increasing supply of bitcoin available for sale in the markets at the same time that we see demand falling. A classic scenario for price depreciation. Now let’s talk about a few reasons why. Indeed, thirty-eight hundred dollars might just have been the bottom for bitcoin. Now the first is that the rich will always be here no matter how grim the crisis becomes for working people. There will always be a class of buyers and investors and traders who will be out here playing the bitcoin game, keeping it real. Already have to consider one bitcoin cost nearly $7000. Working people are already largely priced out of this game in terms of the big volume. So that’s kept in mind. Now, another reason why thirty-eight hundred dollars could have been the bottom is that on March 13th, what we actually saw was the incredible cascade of liquidations happening across crypto exchanges, particularly the leverage exchanges. The cascade of liquidations basically fell down into razor-thin order books, which basically pushed the price lower than was reasonable. Really was this was an anomaly event that was just a crazy time and may not be representative of how the wider market is operating now is another reason. Thirty-eight hundred was likely. The price bottom is that many of the big-money players, they ran for the exits back in March. What they needed was cash in. They needed a quick bitcoin, highly liquid, quick place to get cash. Many of these big-money players, they are now out of bitcoin, at least for the time being. They’ll be back, essentially back. They like the bitcoin game. They proved that, but they’re out for now. Sure. Some other institutions, they came in and bought the dip from those sellers. But in general, these big-money guys are out of the market right now. Not the millionaires and all that stuff, but the institutions. Now, another possible reason. Thirty-eight hundred could have been the bottom is that now everybody wants the opportunity to buy bitcoin at thirty-eight hundred dollars or even lower. That in itself is good enough reason why the price may not go down that far. There are just too many buyers in and above those price levels who want that cheap bitcoins. Means there’s significant demand down there for buyers at those levels. And finally, a look at the technicals. First, the rainbow chart just for fun, which is, of course, just a modified view of the logarithmic growth curve buying in or below. The Blue Band on this chart is labelled as basically a fire sale. So buy, buy, buy, buy, buy at these levels. That is where we are now. Buy, don’t sell something to think about. And finally, the 200 weeks moving average. Now, this is a massively important line in the sand for Bitcoin. Going under this line was a brief moment of historical significance. It was likely an incredibly rare buying opportunity for the people who saw through the fear and were able to buy at those low prices and crossing back under the 200-week moving average, that may not happen again for some time, meaning that thirty-eight hundred dollars could have been a once in a decade opportunity to buy Bitcoin. But all of this could be, of course, invalidated by the plain and simple fact that really no one knows how bad this crisis is going to get with tens of millions of people or even potentially in the coming months, hundreds of millions of people out of work. The economy could go down the toilet very quickly. Again, I don’t know that any this happens. It’s prepared for the worst and hope for the best kind of thing. Personally, I maintain a bullish bias long term on bitcoin. I do think that thirty hundred dollars were likely the big shake out for all the weak hands, but really at this point, all bets are off with how the crisis will play out. I am after all. Does it do talk about cryptocurrencies on the internet? But anyway, I would love to hear from you. What do you think was thirty-eight hundred dollars the bottom for bitcoin? Or are we going to see even more lows for bitcoin in the coming months? And if so, how low do you think we’re going to go? We’d love to hear your opinion on that down below in the comments section. Thank you so, so much for watching today’s video. I hope that your stay and save your stay and healthy, you’re enjoying your lockdown, doing lots of interesting fun stuff. Never work out, guys. Always important, even though you’re locked up in the house to, you know, keep healthy. So, anyway, thank you guys so much for watching. Hit that thumbs up button if you did enjoy today’s video. Make sure I subscribe to the channel. If you are new around here, long live the blockchain and peace out till next time.

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