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Why Bitcoin's 'Death Cross' May Be a Bear Trap - YouTube
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what is going on snipers Nayeem a little
baby here I hope all of y'all enjoying
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your day let's do our daily update for
today and talk about bitcoins upcoming
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death cross and if y'all don't know the
death cross is where the 50-day
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short-term moving average crosses over
the 200-day long term moving average and
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it's a very bearish sign in traditional
markets however I'm gonna talk about why
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I think this may be a bear trap and why
we may see some further upside coming
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from this as we start heading towards
these oversold levels so looking at the
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technical analysis here we've got
several different support levels here in
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the bottom a resistance level right
around eleven thousand nine hundred and
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seventy three and what I want to talk
about first and foremost is this RSI and
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this is the 1-day RSI if y'all don't
know what the relative strength index is
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it determines whether an asset is
overbought if it's over 70 or oversold
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under 30 and one example of this is you
can see here as soon as this price went
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down the our side dip below 30 it showed
it was oversold we saw this huge spike
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so that right there just using the RSI
could have predicted that bounce back in
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bitcoins price and you can see how we're
now starting to find a little bit of
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support right along that 34 and that 36
are a side level but we're still under
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40 if you all don't know 40 is where you
want to look for in terms of looking at
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a bearish RSI so that's right over here
anything over 60 would be considered a
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bullish RSI so anything over 60 which
will actually draw here in green is a
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bullish RSI so looking at this technical
analysis right now you can tell that
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we're still under 40 and what's
interesting about that is it's also
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coinciding with this death cross if this
50-day moving average which is here in
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red starts to cross down over that means
that the Bears had to sell off Bitcoin
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extremely hard for to actually create a
death cross and in my opinion looking at
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the MACD as well will insert that
indicator here this is the moving
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average Convergence divergence you can
also see where the histogram determines
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buyers and sellers
there's not as many sellers as we saw in
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December obviously because December was
a huge rally so there was a lot more
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opportunity for these bears to take over
and sell their positions but right now
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the Bears have sold their position so
looking at the technical analysis right
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now one article that actually coincides
with my philosophy of things is coin
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desk that posted this article why
bitcoins death cross maybe a bear trap
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I'm not gonna go over the whole article
here but it's really interesting and
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they actually say here to cut a long
story short BTC had to drop by $14,000
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to push the 50-day moving average so far
towards the 200 moving average hence
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it's likely that the Bears will run out
of steam by the time the actual death
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cross occurs and then it backs that up
by saying no the RSI showed oversold
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conditions when the death cross happened
hitting at or hinting at the rally to
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come and this was from a previous death
cross that occurred
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who knows very similar how the RSI was
oversold right alongside with the death
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cross occurrence that eventually was a
bear trap and I think that was back in
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2014 so this has happened before and if
you continue to read the article it's
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really interesting there's one part
where they talk about how two out of
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three death crops so far have yielded in
breakouts not reversal so it's an
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interesting article to look at but what
I think is more interesting that I want
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you all to pay attention to is the
technical analysis here and knowing when
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to get your position back into Bitcoin
because people are still worried about
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putting the positions in a lot of people
have even exited this market because
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they've so-called felt betrayed and that
bitcoin did not yield them Lambos and
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took them to the moon but at the end of
the day I have to understand a market
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can only go up so much and it can only
go down so much especially when there's
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intrinsic value especially something
that had a thirty billion dollar market
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cap and then shot up to over 800 billion
and then drop back down to 300 billion
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doesn't sound too bad right I mean 300
billion from 30 billion is still a
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significant increase and understand that
regulations have not yet occurred and
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there are a lot of things under the rug
for Bitcoin like for example you can see
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this
mt.gox news story here talking about
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having tea GOx is now suspected for
selling more Bitcoin if y'all don't know
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they are entitled to return the capital
to the holders of the MT GOx whole
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scenario that occurred in 2013 and 14
and now they have to sell their bitcoins
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and pay back their old customers and you
can see at one point somebody was
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offered two hundred thousand Bitcoin and
if you all don't know why they offer the
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bitcoins because if they sell a large
amount like that in the market just
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traditionally it will cause a huge
manipulation in prices so to avoid that
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and it's actually negative for the
seller because it will drive the price
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up and so it's good to find more of
those other buyers that are willing to
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agree on a price for all of the coins so
in a sense there are still things that
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need to come out of the rug like the MT
GOx scenario where it just needs to kind
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of pass through time and that whole
situation just needs to get it just
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needs to pass by in my opinion a lot of
things need to pass by here you know all
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these scam I SEOs things like that it's
just holding this market back from
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seeing its true potential but that
doesn't mean you should have put a long
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position in the market knowing that this
is the cryptocurrency revolution this is
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the technology is going to transform the
world having that perspective will
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really give you confidence knowing that
this market is still very small compared
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to most traditional markets and these
levels are extremely low right now and
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my opinion these are really good steels
I personally am dollar-cost averaging my
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way into Bitcoin as we speak I made my
first buy order today there was a 10%
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allocation of my capital and the reason
I'm doing that is I'm fairly confident
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if not a reversal we're gonna see at
least some sort of a bounce soon you
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know we're heading towards these lower
support levels you can see here and the
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Fibonacci retracement we're all the way
bottom doubt for it actually zoom in
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here on a 4-hour chart you can actually
see here we can draw another Fibonacci
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retracement here to get a better
depiction of what's happening in current
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time and you can see if we were to draw
this out here and put this down to where
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we saw that previous
support level back in January you can
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see how we're about to start heading
down towards this yellow Fibonacci
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retracement level in which we're most
likely going to see a bounce soon
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because we're holding ourselves on top
here I wouldn't be surprised for us to
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go back down to around 7,200 and then
see a sharp bounce so dollar cost
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averaging my position in through this
point to eventually take advantage of
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the upside that is most likely gonna
occur it's probably the best decision in
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my opinion right now once again this
isn't financial device but I'm just
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saying it's oversold and you know we
went from 30 billion to 800 billion back
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down to 300 billion that's not that bad
it's healthy and I think there's a lot
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of further upside in this market and
looking at the coin market cap in
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general you can see BTC dominance has
been pretty stagnant and I also think
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there's going to be a ton of
opportunities here with these all coins
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you can see some of them popping here 50
percent gains look at that mithril 24
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percent gains for Cisco we actually had
a trade alert of that feel on getting on
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trade alerts so you can see that there
are a lot of opportunities in this
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markets know and I still believe that as
long as we can go through all of the
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dirt and find the gold the silver the
diamonds inside of this market we're
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gonna be set in stone for the future as
the long-term investors swing traders
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and day traders alike so with that being
said y'all this is a message of optimism
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in my appointment in my opinion I do
want to apologize for the Bulls are
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coming video that I posted several weeks
back I think I never had a chance to
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formally apologize about that that was
one missed call I mean we have good
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calls and bad calls that was one missed
call that I had but it was because we
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saw such a significant breakout and you
know at this point I'm fairly confident
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with what I'm doing in terms of a
technical sense and even in a
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fundamental sense knowing that
regulations have pretty much been good
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over the past couple of weeks and also
knowing that in a technical sense we're
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extremely oversold we're heading towards
that bottom RSI level I'm confident in
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putting more money into the market
taking advantage of these swings and
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understanding this about the volatility
not the price the volatility is where
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the money is made it's not the price of
Bitcoin
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whether bitcoin is twenty thousand a
hundred thousand or a hundred dollars as
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long as it's volatile there's
opportunity in it so hopefully this
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videos helped some of y'all and with
that being said
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until next time snipers out
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you
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