Hey everyone meet kevin here. We've got a lot to talk about regarding bitcoin today. This is incredible: a potential bitcoin city, bitcoin bonds, new trends and patterns that we're seeing in the bitcoin charts there's a lot to talk about. Let's get right into it right after i mentioned that hey if you join the stocks and psychology of money course remember that you also get my notifications for when i buy or sell crypto just so you can kind of see what my strategies are where my head Is with crypto at any given point in time check that out, use that black friday code link down below and consider bundling up with all the other programs on building your wealth as well from real estate or uh property management, making youtube videos being a real estate Agent, lots of great programs check them out, link down below okay.

Folks, let's get into the news, so the el salvadorian president has declared that they want to create a bitcoin city, but they don't really have money to create a bitcoin city. So they are going to write you an iou for 1.4 billion dollars, which it's worth noting that the el salvadorian gdp sits at about 24 billion dollars per year. Uh that's billion, not trillion. Okay, that the united states economy is like 27 trillion per year.

Florida alone has a 1.1 trillion dollar gdp, so 24 billion dollars of an economic size is literally one 44th of florida. So just take florida and divide it into like 44 slices, and then you have el salvador with one of those slices and 1.4 billion dollars of money that this country is trying to raise is about six percent of their gdp to create a new city. So they're gon na try to raise six percent of their gdp to create a new city and when they raise this six percent they're going to write you an iou if you're. If you want to be an investor in this, so here's how that works.

They basically write down on a piece of paper all right. I owe you 1.4 billion dollars, and they would give this to somebody in return for 1.4 billion. Now, probably not just one person is gon na, do that. Instead, we're gon na take this little scissor here and we're just gon na.

You know slice off a little slivery roux. There you go now. You have a bond. This is a bond raise.

This is a bond right. This could be, let's say, ten thousand dollars, and so let's say you bought this, so you paid el salvador ten thousand dollars towards their project. You got this little piece of paper in return. This little piece of paper represents a promise of money in the future.

Unless of course, they go bankrupt and then the promise is worthless right and what el salvador is going to do with your ten thousand dollars in that case, is they're gon na take half of it or five thousand dollars and put it into bitcoin the other half They're going to have denominated in u.s dollars and they're going to build infrastructure in a new city that they're going to create. This city is going to be built near a volcano of course, so that they can use geothermal power to power it in a clean way, and the city will have no capital gains tax, no income tax and no property tax. In fact, the president says come here and make as much money as you can. The only tax you'll pay are sales tax because they expect this to be a tourist destination sort of an experiment to try to build a capital on el salvador.

Now this works out brilliantly. If bitcoin does what it did, the last time, el salvador, the el salvadorian president, did something you know on the new frontier. I don't want to say radical, because that implies bad uh, where he essentially issued roughly the equivalent of 30 u.s dollars worth of stimulus to every citizen via a bitcoin wallet in bitcoin. If you had huddled that you'd probably be up about double right now, you'd probably have about 60 dollars of stimulus.

If that were to happen again, uh and and let's say they put 5000 in bitcoin and 5 000 into usd to fund their city and then bitcoin doubled, they could essentially give back their entire iou and boom. They would literally pay for a city with bitcoin, which then i can only imagine the uh, the president of el salvador, making a video, perfect click bait, the zero dollar city, thanks bitcoin, it's great uh anyway. So so that gives you a little bit of insight into the bitcoin city, uh bitcoin denominated bonds. How how that might essentially work very fascinating, uh it'll be an interesting experiment to see how it goes.

Uh most countries seeing bitcoin, obviously is substantially volatile and potentially not uh investment grade. Because of that uh, and of course i would say anybody watching this video would just roll their eyes at that and, like forget the fiat people they don't know, but anyway bitcoin in terms of liquidations. We have not seen as many liquidations here in the last uh. Three days here, as we had seen on the 10th and the 15th, i believe, let's see yeah we've got the 10th year where we had uh longs of about 456 million 351 on the 15th and 277 on the 16th.

So we had some liquidations here: bitcoin helping us get our bitcoin pricing down from about 68 000 to about 64 000 and then another set of liquidations bringing us from about 65 000 down to about 60 000.. Of course, since then we did break below the 58 000 support level multiple times here. Let's go ahead and look at the chart here for a moment we're sitting at the time of this recording at 58.2. It's worth noting, though, that i've added a line here.

I've added the 56 6 line now. The reason i did that is on the hour. Candlestick we hit 56 663 right here. We hit 56 826 right here.

That's two hits today: we did over correct on the 18th to about 55 6, but we're not seeing a lot of confirmation at this level. So i'm seeing much more here again on the 18th, a hit at about 56 000, the middle of the 56 level, and so it's possible that this 56 level becomes sort of a temporary stopping ground. Before we get to potentially a 54 300, which i see is a little bit of a stronger support, we do have some uh historical precedent for a level at 56, 000, as well, more so at 58 000, which is right here. But if we do go back to the beginning of october, we do get a few hits over here, uh right around that 56 300 level, so uh it is.

This is an argument here that 56 600 could be a smaller resistance level. More importantly, to me, i think it's possible we're really going to channel between 60 000 and 56 until we get some kind of moving catalyst, whether that's a negative catalyst or positive catalyst, something that's going to actually get us to break out. We either need to push over 60 and stay above 60 again, so we can really see new highs. 70.

80. 90. 000, especially if we're trying to get to 100k this year. I personally don't think 100k.

This year is realistic, uh though, but but i do think that there are. There is a potential for a 100k sometime between now and the summer of next year, and i say that because i expect inflationary concerns to continue to be relatively uh wild. Oh and i've been looking into that camera and we're over here here. Let me fix that there we go uh but um, but anyway uh.

It is possible that if we don't have any kind of larger positive catalyst or or some new momentum flowing into btc, it is possible that we could potentially see a little bit of uh either a channeling where we trade, sideways or potential bleed down to 54 000 Of course, if we do go down to 54 000, i think that could be a buy the dip opportunity. There aren't a lot of levels, though, between 54 000 and 47, which is a stronger support level. So there's always that risk of potentially buying at 54 and then dropping to 47 anyway. So we'll see what happens uh right now.

I wouldn't be surprised if we end up trading sideways in sort of a channel and that's because bitcoin has historically done this. You get these substantial runs. You channel, you run you channel, you look back uh same thing here, you get runs you end up. Channeling up you channel down very, very common to see channels in bitcoin, especially this year.

So i wouldn't be shocked to see a little bit of a drawdown here, trade sideways channel and then we'll either break up or break down, and so we'll definitely have to pay attention to see if we create or or form any kind of wedge patterns to give Us any kind of indicator as to which way we might go. Personally, i think it's a little bit too early to tell so right now, i'm in sort of the hurry up and wait mode where i'm just standing by waiting to see what happens. Keep in mind. Also, the bitcoin spot etf very unlikely to happen anytime soon, unless we actually get congressional approval for the sec to do something.

I'm not very optimistic about waiting for congress to do something about that. I mean look at what congress did with the uh know. Your customer crap in the bipartisan infrastructure package. I think it's a complete disaster, uh and uh.

It won't be long before congress realizes they're going to have to amend some of the silly regulations, they've passed, uh and who knows. Maybe then we'll we'll see something for the bitcoin spot etf, because a bitcoin futures etf is risky. It's expensive, of course, with these, if you don't understand, backwardation or contango, do not buy a bitcoin futures etf, stay away from the futures, etf you're, better off just holding the coin. Favorite spot, of course to buy is a coinbase pro it.

It has much less of a of a lock-up grasp than you might see at some other platforms, uh and uh, just for example, voyager digital, i'm excited about the yields, but boy, oh boy. If you want to transfer out they limit you, they really limit you on. On transfers going out - and that's frustrated me a little bit lately here but anyway, that gives you a little bit of an update here. If you found this helpful, consider sharing it consider checking out the programs, i'm building your wealth link down below with that black friday.

Coupon code and folks we'll see in the next one thanks so much goodbye.