What's going on guys, welcome back to the channel and bitcoin has gotten absolutely crushed over the past couple months. As you guys know, cryptocurrencies have been crushing it. Altcoins have been crushing it. Bitcoin alone was crushing it we've all seen the bullish run.

We've all heard of it hell - we've probably all talked about it, but the main question is right: now when is bitcoin going to bounce and when is bitcoin going to stop in the current downfall that we're seeing right now? So what we're looking at here is a chart of bitcoin. I have it up we're going to go through an analysis on bitcoin and give you guys my best representation of what is going to happen here in just a second. So first things we're going to start off with is we're going to look at this relative strength index down here on the bottom, if you're new, to trading new, to investing, never opened up a stock chart platform once in your life? Well, this could be arguably slightly confusing, but i'll try to make it simple. So this little jaggedy squiggly magoo line you see down here - that's called the relative strength index and it's really just an indicator.

You're able to apply to a chart to give you some sort of visual as to what might be happening to the stock or what might be happening to bitcoin, looking at it from a momentum perspective. So this little squiggly thing down here. This is a momentum trend line all right and what this momentum trend line can do for us is, it can give us something called a divergence now. What that is is pretty much almost like an anomaly.

It shouldn't be happening right and let me explain so when we look at the price of bitcoin, you will see that we had breached this high of 42 000. Almost 43 000 okay - and this was back you know months ago. Alright. Now, if you see it continue to go higher into new all-time highs for a couple months simultaneously, as it was going into new highs for many months, you'd look down here on the chart and you would see that the momentum had actually been going down for many Months so the same time that the bitcoin price is booming to all-time highs, ripping faces off, making new millionaires billionaires even it was also trending downwards in momentum, so think about that as the market's trending up, the momentum is trending down.

So that is when we're getting an opposing argument in the market. So that's something that you can use rsi for every single day on any single equity on any single thing that moves around all the time like stock, all right. So with bitcoin, we had seen all-time high, pushes decreasing momentum or down trending momentum and that's a divergence, and in this case it was on the bear side, and that was the early signal that this market was going to be rolling over on bitcoin. Now.

The next thing we're going to talk about is the long term trend, so this is a one-year day chart or a one-year one-day chart. This is a long-term trend, so today the price of bitcoin has dropped down to our first low-risk buying point, so we're already buying bitcoin today, so you'll see that bitcoin has rolled over and you see this purple line, and then you see that orange line. This was our first low risk, buy point so back when bitcoin was here and back when bitcoin was here and it was coming down here. What we wanted to see was bitcoin hit down to prices of 37 500..

This was also posted on our morning watch list. Just a couple days ago, so right now we are looking at being more bullish on bitcoin for the time being, and the reason that is is essentially bitcoin has gone all the way up, it did its divergence, it broke down and it's come down to its new Long-Term trending support line oftentimes we're gon na see the market get bought here, bounce here and or supported, and try to reverse the market now many times the reverse could fail and bitcoin could continue going down lower, but usually that's not going to happen without at least Trying so if you know where these points are that people are going to at least try to reverse the market, then a lot of times you'll get in at a low risk, bounce for a counter trend, bounce or the start of a new trend. Not all the time will you buy and it'd be the perfect buy point and it kickstarts into a new primary trend. Many times you could buy and it just does a nice little bounce before reversing back downwards.

So the nice thing is is if you're able to find these low risk starting points that, even if the trade was wrong and you don't get into a new primary trend - you'll normally have a green trade or your entry is so low or so low risk that Even if it's wrong, you can still squeak out with a win or a very small loss. So as we look at bitcoin here on this long term, chart let's uh zoom in for you guys so first things we're going to do is we are going to add a price level right here across that uh that trend line. So, let's do that we're going to add a horizontal price level right here at thirty seven thousand six hundred five hundred now when we go look at the one minute chart, look at what's happening as we kind of trade around that price sure we did break it. Snap down a little lower, but you can see look at all the buying volume coming in in this area.

Look at how quickly the market reversed once we kind of got to this price broke through we're already starting to bounce back up. So this tells me that there are buyers located at these prices that are willing to buy the market up. So when i had started, i excuse me. I already entered a longer long position into bitcoin right here at this price.

I didn't quite get the bottom, but i got in about right there so currently already along the market on bitcoin into this drop. So let me give you guys another outlook on bitcoin, so in the event that bitcoin does not bottom here, which i strongly think we're gon na bottom for the time being, but if, in the event, somehow it does not bottom here and it continues lower, then our Next low risk buy point uh for bitcoin is going to be all the way down uh at 26. 000.. Now i do, i think it's gon na get there.

No, i don't, but if we did see bitcoin somehow roll over to 26 000, we would be taking a very big long position in that area. Now the only reason we kind of think it's possible to do. That is, if you look back at the chart here on bitcoin there's, a very big gap fill in the chart for bitcoin at 26, 000 to 23, 000 or well, 26 000 to closer to 24, but either way. So there is a gap in the chart that has yet to be filled on bitcoin, which could very well happen.

So if, in the event, somehow we don't support and do not hold in the 37 500 for bitcoin and then we see the price of bitcoin gets slammed down into areas of 26 000 to 24 000, you would want to be extremely long. Biased bitcoin prices there. So if we fall to 26 25, you can be sure i'm gon na scoop myself up a full biddy. Okay.

So with that being said, ladies and gentlemen, i wanted to come on give you guys a very quick analysis as to where we are buying on bitcoin. For the time being, now, let's give you the sell point as to where we think it can go to if we are correct, so the first thing that we're going to do on this reversal, if it's correct is we might look to fill the gap. That's a first first kind of go-to potential trait is filling the gap all the way back up to 48 300 on bitcoin. The second thing might just be getting back to the deviation trend, which is this dotted line that comes into play at forty six thousand.

Forty. Seven thousand the next thing would be going and analyzing a four hour chart, picking our next trend line, which is at forty four thousand. So the way that we would look at this is on the way back up right now for bitcoin. We would look to basically call this one so target one.

This would be, i guess you could call it target two, and this would be target three, as in this would be the easily more or sorry. This would be the easiest target to obtain. This would be the second easiest and thirties, or this would be - you know harder harder harder. So with that being said, we're going to look for a long move on bitcoin around this area.

Back up to about 45 000., we figured that that's probably the counter trend. Reverse point back up to here all right so right now, that is the analysis that is a trade being long, biased, bitcoin looking for moves back to 45, 000 or so slightly higher, maybe to 48 000 also willing to see it all the way down to 24 000, without even closing the long position and just buying more so hope you guys like the video. I hope you learned something new make sure to smash the thumbs up. Button hit the notification bell after subscribing and then making sure you tune in whenever we basically post a new video with that being said, we'll see you guys in the next video everybody take care.

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