You have to see what’s happening under
the Bitcoin price this Friday as we are
officially above the $50,000
But we’re not seeing the follow through
that we’d expect to see if Bitcoin
was truly ready to reach $58,000.
So I want to talk about some potential
downside scenarios coming to the weekend
where it’s the most manipulated.
And we do have to address what’s happening
to Ethereum, of course,
because notice here how we are also
reaching this area where in the past it
has indicated Ethereum is overbought
a and we know that inside of this channel
is usually the fair market
value for Ethereum.
And anytime we’ve come above this channel,
we’ve seen a drop
at least back inside of the channel or
sometimes below the channel
where Ethereum becomes oversold.
And so this has actually caused us to take
a short position right around
for those in the discord.
I sent that out today.
It’s already hit all targets.
I currently have my stop
at break even for that.
But I want to talk about what would happen
if Bitcoin did topple over for the short
term, at least into this weekend.
How’s the Ethereum gonna react to this?
Are we still gonna see strength
for Ethereum against Bitcoin?
Because that’s a huge
puzzle piece on the table.
And we do have this bullish
daily candle that closed.
But we have to realize that when it comes
to there the Bitcoin chart, others
dominance the Ethereum dominance chart.
Those could go up and down regardless
of if price is going up or down.
So what we really want to monitor here is
if a Ethereum is gonna be showing more
strength in Bitcoin,
are we gonna be seeing some new yearly
highest for the Ethereum the Bitcoin chart
because we are at resistance right now.
If we don’t see new highs,
what if we are forming just another
lower high before seeing some downside?
It’s on the table, right.
Or we could be doing the opposite
and do a higher high.
But coming into the weekend already
with Bitcoin not see momentum at 500 as
we’d expect to see when you’re
breaking a major resistance level.
We do need to talk about
these downside scenarios.
And then we’ll look at some of the other
charts like the altcoins outside
of a there in Bitcoin now that we’re gonna
start isolating them and then talk about
how traditional markets
close for the weeks.
We have an idea of how institutions are
putting their capital to work
coming into this weekend.
And so let’s first talk about
what’s happening here to Bitcoin.
Of course, on the daily chart.
So far, we can’t say much
of the daily candle today.
Yes, we formed some new highs,
but at the end of the day,
we’re not seeing follow through and follow
through would come in the sense of volume.
And if we look at the daily volume so far,
we’re not necessarily seeing more
volume than we saw yesterday.
It’s just kind of starting
to even out here.
And that is a slight concern for me just
because of the fact that we have
to realize we’re in a very sensitive spot
above the 200 day moving average,
seeing right out that $46,000 level
with Bitcoin just kind
of starting to curve like this.
It’s not looking too sell
coming this weekend.
So if we break 49,700 once again,
then we could assume Bitcoin is going
to come right back down to the 44,$800
to $49,700 range and stay within this
range for maybe a couple more days,
a couple more weeks.
But what I do know is it 49,700 isn’t able
to gold and it truly starts
to act like a resistance.
Then we need to monitor 44,800 at this
point and there are so many different
things going on in this range,
like the weekly open, the monthly open,
the previous weekly open between 49,700
and Fortyfour thousand 800 that we
can’t really make much of.
We even have the 200 day
moving average here.
So we really have to keep 44,800 as that
mindset barrier for Bitcoin
to not cross below.
If we want to assume any further upside
with Bitcoin, not necessarily seeing
the follow through yet at 500.
Now, if we see follow through, we start
to see some actual volume come in.
We need to start getting towards this
$54,000 level so that if we come back
down, we can test 49,000 as
a support rather than a resistance.
And then we can talk about the outside
scenario a Bitcoin seeing you all time
highs, but right now we have to be like
like Bruce Lee and adapt
to what’s happening.
And yes, we started to see the follow
through, but now we’re seeing weakness.
And because of that, you know,
we took a short on Ethereum.
I wouldn’t be shorting Bitcoin now
with dominant so oversold we do want
to monitor now is $49,700 level because
that will open the door
to 44,800 potentially.
And then 44,800 is the real level.
That would be a make it or break it when
it comes to Bitcoin price action here.
And it’s gonna be interesting because
with Ethereum we still haven’t necessarily
gotten our Bitcoin dominance and others
dominance prediction tested because
Bitcoin hasn’t really
toppled over in any way.
And we’re assuming that when this does
happen, that Bitcoin down
starts to see strength.
It’s gonna be when Bitcoin is not
necessarily showing as much upside because
that could cause fear and be the narrative
behind Bitcoin dominance increasing.
And so if we do see 49,700 break,
we also want to start looking at how is
the theory to Bitcoin chart reacting
to this that’s going to lead
other altcoins potentially.
But we also have to take a
slightly isolated approach with Ethereum
as well because realize that it’s also
institutionally graded just like Bitcoin.
It has same features and so forth.
It’s the only altcoin that has that so I
wouldn’t be considering it in Altcoin
anymore, which is why this chart
that factors in the coins
outside of Bitcoin and Ethereum.
And of course, the stable coins is more
important to watch now because notice how
we had this slight top here
from the initial end of all coin season.
Bitcoin topped out.
There is this area where we’re currently
sitting at 35 point 22% dominance.
That was very hard
for this chart to get above.
And so ETH acted in resistance once,
twice, a third time, a fourth time.
And ETH, we saw this kind of like
top formation above that.
But we’ve never really seen
candles get back to those highs.
And we’re finding now resistance already
at this level, it’s starting to look like
this is becoming either
a ceiling or a level.
That’s gonna break this
chart to the upside.
If this starts to break down,
we already have these higher high
forming and sort of a bare flag.
That’s gonna be a huge puzzle piece for
altcoins outside of Bitcoin and Ethereum.
I don’t think this would be tested
until Bitcoin sees downside either.
So we either stay be 49,700 or not.
With the Ethereum dominance chart is
a little bit of a different scenario.
We’re not finding as much resistance
at these areas that we’ve
found resistance in the past.
We’re actually playing inside
of the range that we need to be playing.
And if we want some further upside,
so that’s why we’re gonna start isolating
the Ethereum Oinance chart
away from all the other Altcoins.
And of course, Bitcoin dominance will
have to continue monitoring this.
I don’t see this rising unless Bitcoin
sees downside, and we are
testing some previous lows here.
And so Bitcoin is really testing
the market right now, in my opinion,
in a lot of different ways, not just in
price, but with its dominance right now.
And then look at silver against Ethereum
breaking into new low territories
that it’s never been out before.
That means the value of Ethereum exceeding
the value of silver without the US
dollar value attached to that equation.
It’s seeing a break right now.
Is this gonna just kind of slingshot back
assuming Ethereum sees downside or just
actually gonna see like a crazy breakdown
where Ethereum just breaks four0?
A lot of that will have to do with how
Bitcoin racks to 49, 700
The DXY is at a major
support closing the week.
That assumes that we could
see some upside soon.
Maybe on Monday, maybe
on turn it on Tuesday.
The weekends obviously not going to show
up because it’s closed,
but we’re not breaking the support.
We’re sitting at support.
So same way we were sitting at resistance
when we closed the previous week.
That gave us opportunity to come down.
Now it’s the opposite.
The tables have flipped.
So is this the last draw
before DXY pushes up?
And then we see traditional markets start
to fold, that some 500 and then
Bitcoin potentially following that.
Well, Gold is seeing
strength ending the weak.
Look at this new highs here.
Institutions are fearful of keeping their
capital in traditional markets
there to keep their capital.
Tradition markets they’re sure is now
gonna be fearful to keep it in crypto
currencies, for the most part,
not maybe Bitcoin.
Which is why dominance would move up if we
start to see traditional markets topple
over and Bitcoin also
follow that path in price.
But maybe not in dominant.
And so that’s really ETH.
Thesis and storyline we’re going
to maintain to cover over the next
few days on this channel.
The dominance levels and Bitcoin reaction
to 49,700 we’re gonna find
this out here real soon.
So I hope you guys enjoyed today’s video.
Thank you all for tuning into the snipers
channel today until next time.