cryptocurrency markets right now are
absolutely catastrophic
bitcoin right now is crashing it's down
34
in the last several days ethereum also
is crashing down nearly 30 in the last
several days
in this video i'm going to explain to
you exactly why and when
you should buy the dip
[Music]
welcome back to the channel everybody my
name is artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis
so as most of you already know my
background is 100 cryptocurrency that's
what got me into day trading i get
asked constantly is now a good time to
buy is now a good time to buy
it's non-stop in my dm and for those of
you wondering
why crypto's crashing right now i'm
gonna post a few articles down below but
essentially
elon musk said on his twitter account
that he's no longer gonna be accepting
bitcoin as a form of payment he's not
going to be selling his bitcoin
but the amount of energy consumed while
mining bitcoin is actually getting out
of hand so he said it's bad for the
environment
thus it's crashing plus vitalik buterin
the creator of ethereum
has been moving quite a substantial
amount of ethereum trying to make money
for the new ethereum 2.0 coming out soon
so there are a lot of reasons causing
this cascade motion down
but i promise you it will reject and go
back up
so essentially if you're worried about
this crash and you're wondering if you
should get out or buy
more i'm going to tell you exactly what
you should do right now
okay jumping into the charts we're
looking at bitcoin us dollar right now
on the daily time frame as you can see
since october 18th when we really
started to
rally the price went up over 500 percent
and now as you can see the entire world
is panicking and it is cascading down
the same thing is happening with
ethereum right now you can see it's far
less cascading than bitcoin but still a
massive rejection of
over 30 now i need you to just stop and
don't panic
because the reason a lot of people lose
a lot of money in crypto is because they
see something like this
and then they sell and the price
immediately bounces back
up that's called a liquidity grab just
so that you guys understand
as the price goes up it loses a bit of
momentum and starts to come back
down it's like the price is actually
taking a break regaining its energy to
continue that upwards momentum you can
see there was a liquidity grab
right here right here and right here now
if you're wondering what these three
lines are and you're new to my channel
and new to technical analysis
these are what are called moving
averages this is the 21
period moving average the 50 period
moving average and the 200 period moving
average
basically taking an average of the price
for a given time
frame meaning that's the average price
in the period of 21. now even if you're
a new trader you always hear the term
buy the dip every one of these dips is a
potential long opportunity for your
investment to grow quickly but how do
you know when this dip is going to be
over
i'm gonna show you a tool called the
fibonacci retracement tool if you don't
know what the fibonacci is
make sure you google it and research it
because it's absolutely lethal when
using it in cryptocurrencies now i'm
going to put this up on the chart a few
times just to show you what i'm talking
about
we start at the beginning of this
straight run this whole run was
one solid movement so we drop our
fibonacci tool right here
from the bottom to the top and it
retraced at the 50 level again we had
another momentum move
right here from the bottom to the top
and we retraced at the 50 level again we
had another momentum move
from the bottom to the top and this one
actually went past it to the 764 level
each one of these fibonacci levels was a
good
indication for you to buy the dip now
this is on the daily time frame so these
are
actually small dips in accordance with
the history of the price
so if we get rid of all of those and
look at the macro scale of it and see
this big
pullback over the course of this entire
bull run and now we're having a pullback
we can get a clear indication of when
this is going to stop now you can see
that the price started leaving the
moving averages right about here
so this is going to be your bottom and
this is going to be your top right now
we are getting close to a 50 level
retracement so that might be a good
option to get in on the dip but what i
want you to do is be patient and wait
because it might hit this and bounce up
or it might continue down to the 618
level
and then reject up so what i want you to
do is wait for the price to go
past it and then buy as it's coming back
up through it once you do this using the
fibonacci tool setup you can actually
see
these three different take profit levels
meaning that the price
should potentially go up there the first
one is going to be the previous high
and then take profit 2 and take profit 3
going all the way up to ninety six
thousand eight hundred and sixty dollars
and that's for bitcoin now i like to
look at multiple cryptocurrencies at the
same time because
when bitcoin starts to fall ethereum
goes likewise and when ethereum rejects
on something and goes up
bitcoin also tends to do likewise so
right now we're sitting at the 21 period
moving average on ethereum
and we could actually get a nice fat
rejection right here which if you look
at a fibonacci retracement
zooming it in a little bit is exactly on
the 618 level
we're starting to form this wick right
here showing a clear rejection so as
this goes up
bitcoin might actually retrace at the 50
level that it's currently at right now
now if you guys want to learn how to set
up your fibonacci tool for trading view
like i have here
definitely watch this video but again
looking at
bitcoin you have to think about key
support and resistance levels
areas where the price rejected or
maintained its position and continued up
so as you can see here we had this high
point here at forty thousand dollars
dipped down and then blew right past it
so this right here
is actually a key area where we can
actually
look for a lot of support currently we
are dipping past it but that tends to be
a trap
breaking below a level of previous
resistance or support
and then rejecting off of it quickly
trapping all of these traders here in
their short position
as the buyers have the liquidity from
those sellers
to continue straight back up so if you
guys are stressed
about this dip don't panic seriously if
you're long-term
holding cryptocurrencies you're good for
the next 10 years really really don't
worry about it
but if you are a day trader and you're
worrying if now is the time to sell or
buy
more i'm suggesting you wait and you
watch the rejections
off these fibonacci levels and then you
can comfortably get in on a long
position so if you guys are interested
in learning how to day trade and
learning everything that i do
check out my beginner day trader
playlist and once you've finished that
you can check out the entire strategies
playlist i've got over 60 videos on this
channel
teaching you everything that i know
about day trading for
free and if you're already advanced and
you want to look at rsi divergences for
perfect entries when going long or short
check out this video right here and if
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right here thanks so much for watching
and we'll see you in the next video