Could This Bitcoin Head And Shoulders CRASH Bitcoin To $8,000?



hey guys what's going on jab here and in today's video we're going to be doing a little bit more shorter term technical analysis on Bitcoin because in today's video I want to discuss this pattern that we're looking at here on Bitcoin this very clearly looks like a Head & Shoulders pattern to me guys with the shoulder right here a head right here and a shoulder right here we've been talking about how it's very possible that this uptrend on Bitcoin is not the actual beginning of the rally for Bitcoin again and that we may see some more bearish price action before that happens so in today's video I want to discuss whether or not bitcoin is actually about to crash below recent lows down all the way down to around $8,000 because I think that's not necessarily the most likely scenario but one that we definitely need to be aware of and be prepared for so that we can trade accordingly guys before we dive on into it I do want to mention that something really awesome happened last night we hit 25,000 subscribers I am so so blown away by that guys only about 13,000 of those accounts are emails that I have created so that means 12,000 of you guys subscribe to the channel and that is absolutely crazy to me thank you to every single one of you who has subscribed because we've hit 25,000 subscribers and I want to celebrate a little bit I'm going to be running a sale on the cryptocurrency technical analysis Academy the coupon code is 25k 2019 they'll give you $40 off the cryptocurrency technical analysis Academy where you can learn everything you need to know about how to profit in crypto currency markets anyway guys without much further ado let's go ahead and dive right on into it I do want to start off by talking about the head and shoulders pattern here but I also think we need to zoom out and give ourselves some context before we start talking about that as well as we know bitcoin has been in a state of rally for a very long time over a hundred and thirty days Bitcoin rallied all the way up here to 300 percent from the bottom $14,000 at $10,500 rally Bitcoin basically went to the moon I mean that was pretty much our moonshot anything from here's us going to the stars from there of course Bitcoin was going to have to have a correction but I want to point something out bitcoins only had a 35 percent correction so far and if we look back in history on Bitcoin even shorter rallies than this back in 2017 that would result in one hundred and eighty percent run for example in a three thousand dollar movement would result in a forty percent correction so we've had a very large and not the large correction that you would oftentimes expect to come out of Bitcoin when this kind of rally has happened with that in mind I think it's very possible that Bitcoin has a 40 to 45 percent correction instead of just a 35 that would put us down here around eight thousand two hundred dollars to around seven thousand five hundred dollars and I think it's possible we go to an absolute bottom of seventy five hundred dollars and that's why we're talking about this in today's videos because this downtrend might not be over yet some people in the comment section of yesterday's video pointed out Jim why are you so bullish to be clear I wasn't extremely bullish in yesterday's video I was laying out a scenario of how we could go bullish it wasn't that I was very bullish but they were right in saying this Bitcoin really has not even started to confirm bullishness yet we've had the like confirmation of early bullishness we have kind of we're kind of in the early phases of a rallying but that doesn't mean anything yet because we haven't had those longer-term confirmations that we discuss in yesterday's video the things that we discussed in yesterday's video are very applicable to today's video I do recommend you watch that before you continue on and with this video a lot of things discuss there are going to be very important for what we talk about here but I will go over them again briefly so you guys can be caught up date some of the things I talked about were the confirmation types that we need to see Bitcoin maintain and confirm with before we can say that bitcoin is in a proper uptrend a couple of those was bitcoins RSI trading above 50 to 60 and trading up here around 60 70 or 80 that's a good indication that you're in an uptrend another thing would be a bullish cross here on the daily chart with the MACD both of those things would be indicative of a new Uptrend stochastic RSI moving to the upside RSI sitting in overbought territory or close to it all of those things are indications of a low of a uptrend and it's very important that we see those kind of things we haven't seen them yet so it's still very possible that we have a correction with that said let's talk about that correction because what we are seeing here and I admit I saw this in yesterday's technical analysis I didn't mention in the video was that this was starting to look like a Head & Shoulders pattern if we go back 24 hours we're gonna see yesterday the chart looks something like this and Bitcoin had just been in this little bit of an uptrend here I think we just set this bottom down here if we look on the thumbnail we can see that's a little bit further ahead than this if we play this forward if we were probably about right here in yesterday's video nevertheless the point is now the Bitcoin has moved forward another 24 hours we are now basically trading sideways were not really in an uptrend anymore because I mean just look at it we're basically trading sideways and also we have this Head and Shoulders pattern what we see here is the Bitcoin trading sideways that's an indication of neutrality it doesn't really mean that we're bullish or bearish but at the same time we have a bearish technical indicator here we have this Head & Shoulders pattern a bearish chart pattern I should say so what's gonna happen here is Bitcoin going to break bullish or not well there's a couple different reasons that I think we might break bearish here we see the Bitcoin is actually also in a consolidation pattern and is moving sideways likewise this is going to cause a breakout sometime today a breakout is most likely going to happen today it might not be a big one but also if this breaks bearish guys I have this bad feeling that's gonna be a big one if Bitcoin does break bearish below this neckline right here there's not a whole lot of support below us let's go ahead and look back here we have a little bit if we bring up our cross I mean we have some here at $10,000 flat we might crash all the way down to 10k below that guys I mean what do we have nine thousand seven hundred dollars and then nine thousand one hundred dollars there's not a whole lot down there and it wouldn't surprise me if we go lower so with that said how low could Bitcoin go should we continue this downtrend because I mentioned the price targets of eight thousand dollars earlier was I serious about that is it possible to Bitcoin actually goes that low yes let me show you why first of all if Bitcoin does have a crash here it's probably going to bottom out somewhere around eight thousand nine hundred dollars or this downtrend of support to start with but there is also the possibility that we go lower than that I will show you exactly why out here on the daily chart if we look back into 2017 what we will find is that oftentimes Bitcoin would come down to this gray moving average right here that's the 100 daily simple moving average the 100 d SMA this simple moving average is very important in Bitcoin technical analysis during bull markets as you can see Bitcoin very often comes down and tests it as support we saw it here we saw it here we saw it there we saw it there we see it a lot it's a very common trend if you go back into the previous bull market Bitcoin does it as well this is a very important up trending level of support the Bitcoin often time get support on when you're in a bull market notice though that we haven't actually gone all the way down to it so far down here around 8300 to $8,400 right now bitcoins bottoms only here nine so there is still more room for a bit going to have this correction and if Bitcoin did do that and it correct it down to where this moving average might be in a little while guess what guys that lines up with that forty percent correction that we still haven't gone to yet I think it's still very possible that we go down there I don't necessarily think it's the most likely scenario I think the Bitcoin if it goes anywhere is probably gonna bottom out here around where these two lines just happened to cross somewhere around here or somewhere around here probably not there because right below us but as far as where we may go probably somewhere to around nine thousand dollars if we break bearish out of this pattern keep in mind that since this is a Head & Shoulders pattern it is possible to actually draw a price target on it I'm not a big fan of price targets on Head and Shoulders patterns but you could draw it something like this and have a price target at $9,700 but like I said because there's not a whole lot of support we're probably gonna blow that out of the water should we actually have a bearish rally like I said guys Bitcoin could rally here we could continue the rally we're still in a very neutral position the oscillator is looking very neutral the chart is looking very neutral Bitcoin has not really decided which direction it wants to go this is a decision point for Bitcoin we're trying to figure out we want to go bullish or if we want to go bearish in this video I was not laying out me saying that I think Bitcoin is going to go bearish that's not what I was saying I never said that I want to be clear on that I did not say that Bitcoin is going to crash what I do think is that it's a very likely possibility or excuse me not a very likely possibility but a possibility that is in the realm of possibility that we need to take seriously so that we can be prepared should it come to pass I'm not gonna put percentage values on these because there's not a whole lot of technical analysis that's very useful right now to be totally honest most technical indicators are trading sideways they're not really very useful right now we'll see what happens I think that bitcoin is going to be very bullish about a month from now but we're gonna have to see what path Bitcoin takes to get there anyway guys that's going to do it for the technical analysis portion of today's video but I have a very interesting article here that I want to read to you guys for two different reasons one because I want to talk about what the article is actually talking about but I also want to talk about the idea of attributing cause to certain things that happen in the market this is something that the article talks about very early on it's a very important concept one that I've talked about many times here on the channel and they put it so eloquently that I want to go ahead and read this article for both of those reasons so let's go ahead and dive on into it research finds bitcoin and litecoin having's do not impact price now that's very interesting that they would say that because it's commonly accepted at least in mainstream and at least in news circles of cryptocurrency that there is a cause and effect there's a causality to rallies and that causality oftentimes is attributed to having x' whenever I having happens often times you'd think ok well the rally's going to happen well guys I do want to point out that the last like the last Bitcoin having happened somewhere over here there wasn't really a whole lot of bullish price action I mean a bull market followed but it was such a smaller correlation that it could very easily be attributed to a coincidence but anyway reading on with their article here contrary to the popular media narrative new research finds that bitcoin and litecoin prices are unimpacted by block reward having's and that's interesting because I both agree and disagree with what they're saying here partially because of their methodology in this research I'll get to that in a second the main reason that I think that blocker we're having to do have some impact on the market is not because of anything fundamentally it's not to do with miners having a less cryptocurrency to sell it's actually because of the media hype a lot of times people expect the market to rally when there is a halving and oftentimes the market rallies because people expect it to rally and because people expect it to rally people go and buy Bitcoin or litecoin and in the market rallies which is why some people talk about how oh the price actions already priced in there's not going to actually be a rally on the day of the halving it's gonna happen two weeks before that's what we're talking about with like going right now with the halving just around the corner and a lot of people are seeing that happen on litecoin in the same way that we've seen happen on Bitcoin and other cryptocurrencies in the past let's continue on here people crave cause-and-effect relationship the crypto markets are the opposite of what people want a near perfect machine of randomness and volatility nonetheless people's desire for cause and effect causes the mainstream media to build narratives around likely arbitrary price changes Bitcoin price recovers after tumbling on Libre hearings right Forbes a mysterious order triggered the beginning of the 2019 bull market reports Reuters tether issuances are the underlying factor behind bitcoins recent resurgence suggests QZ and this right here these three paragraphs I'm gonna go and finish the last paragraph because I want to be complete here before I dive into what I want to say are so very important these are some of them I love that this came up yet even Phenom Manong with bases in logic may be susceptible to the cause-and-effect fallacy if you will one widespread belief among cryptocurrency enthusiasts is at the Hamming of blocker Ward's causes prices to increase and the logic is sound if miners earn a fewer coins than sell side pressure should decrease at least you would think so reductions in supply consequently should cause an Associated increase in prices well there's several things I want to talk about here before we even get on to the rest of this article because there is a little bit more I'm not gonna read everything else we're gonna breeze over that but there's a couple things I want to discuss here one is that miners don't actually have that much Bitcoin if we were to go on coin market cap here then we can see the circulating supply of Bitcoin we can see the volume and everything but guys I want to ask you a question how many Bitcoin are actually mined every day well there's actually about 1800 bit coin Minter mined every day because you have a hundred and forty-four blocks that are mine Bitcoin gives you 12.5 Bitcoin for every block that's mine that you multiply those together you get about 1800 at current price bitcoins worth about ten thousand dollars you multiply those together and we have about eighteen million dollars of maximum sell side pressure there's about eighteen million dollars that can be sold every single day worth of Bitcoin guys eighteen million dollars is not a lot of money if we come here to coin market cap there's been 16 billion dollars worth of volume reported on Bitcoin on coin market cap cut that by three quarters because a lot of this is just nonsense coin market cap tracks literally everything and a lot of these exchanges use wash Trading and everything even if we say there's only 4 billion dollars of daily volume 18 million dollars of sell-side pressure has a very small impact and that little change from 18 million dollars divided by 2 when the halving happens to 9 million dollars a 9 million dollar difference in daily sell side pressure at most is not going to make hardly any change to the market the second thing that I want to talk about here has to do with the cause-and-effect fallacy that we've talked about so many times on the channel but I've never really had a great way to put it into words which is why I'm so happy with this article because this is a great way to put it into words people often times look for a cause to a certain move in crypto currencies they'll say that what happened yesterday caused this move or this caused this move or that caused that move that sometimes and honestly in my experience most of the time is complete nonsense a lot of times the market moves purely because of technical analysis plus randomness News doesn't have as much of an impact on the market as I think a lot of people make it out to be now don't get me wrong fundamentals have a huge impact on the market if something has changed fundamentally in crypto currency that's big but let me give you an example of why news isn't that important can you see here on the chart when Bitcoin was denounced by President Donald Trump I mean literally the most powerful person on planet earth one of the most contentious figures on the on the planet decided that he hates Bitcoin and that excuse me I don't want to misquote him decided that he is not a fan of Bitcoin are the words he used that's a pretty big deal from a news standpoint the leader of the free world saying hey by the way I don't like cryptocurrency you think that if news had a giant impact on things you would be able to tell on this market where he said that I can't tell you I forget exactly what day it was I want to say was back over here on the eighth of the night I'm pretty sure he said it during this uptrend and it really didn't have much of an impact that's because fundamentals and technicals will change the price but news doesn't have as much much much of an effect on price action has a lot of people make it out to be now with that said news does have some impact and if the media hyped something up enough then it is going to have a major impact but small news stories that are not really bullish or bearish in most cases are not going to have a massive impact the point I'm trying to make here is that we need to value news a little bit less value fundamentals and technicals a little bit more because those are the things that are actually driving the market at least they have been in my experience reading on here like I said the rest of this is going to be relatively brief because the main thing I want to do is level a small critique at their research methodology and then we're gonna wrap it up here but basically the way that they went ahead and researched this would be as following research on the price impact of having z' i'm gonna go through this pretty quickly research conducted by niko and Ava from Strix Leviathan at Seattle based startup that specializes in engineering and operating trading algorithms for the crypto currency markets challenged the belief that having is materially impact coin prices the researchers analyzed 32 having's across 24 crypto currencies that's where my problem is and compared these to an overall overall market benchmark performance on each coin was evaluated six months before and after each having and compared against crypto currencies not going through a halving event in the same timeframe now this is actually where we're going to stop on this article because this is where I have my problem you guys can continue reading this article on your own if you want you complying the article with the title at the top the problem I have with our methodology here is that they're analyzing cryptocurrencies other than bitcoin and litecoin well guys guess what the news never talks about cryptocurrencies other than Bitcoin Michael and going through having's they just don't they never I mean that they just don't care and the reason that they don't care is because they're smaller crypto currencies if they did this research on only Bitcoin and only light coin one the research would take a lot longer and they'd have to do back testing and look at the market previously but if they did that then they would also be seeing the effects of the news so what they should do is take in my opinion anyway what they should do is they should take this research and use it as a benchmark and compare it to research where they go and they back test having's on Bitcoin and I like one because I have a feeling if they were to do these same tests on Bitcoin litecoin they see that having's do have an impact on their price actions just not as much as people make it out to be and the reason I think having x' will have some kind of impact on Bitcoin litecoin is not because of a fundamental change like I just showed you the fundamental change on sell side pressure on Bitcoin is miniscule the reason that I think having do have some impact on bitcoin and litecoin is because they are noticed by so many people and they're using so many people's technical analysis so many people are making trades based off of them they're used as a benchmark for when Bitcoin bull markets are gonna start they're a major component of Bitcoin technical analysis even if they actually don't mean anything at all and because of that they are going to have some small impact on price action at least that is my opinion I would love to see research on this I hope they do a follow-up study on this but that is the 140 cog level of this research is that they're analyzing currencies other than bitcoin and litecoin now if they're only trying to figure out whether or not the halving itself is is having a fundamental change on the crypto currencies the price action I would agree with them it's not gonna change anything at all and that's what this study just proved actually is that the halving itself isn't going to cause any change at all it's the news that is causing the change so I want to be clear on that I'm not I'm not disagreeing with their research I think they're right here I think that they just need to go and do another study with this in mind or they should have included it in this one anyway guys I think we got to a lot of very valuable news in today's video I think we covered a lot very valuable topics I think that bitcoin is definitely in a very interesting position here we may see a breakout here in the last few minutes of the video no matter what happens guys I think bitcoin is looking very bullish for the remainder of 2019 even if the next couple of weeks have a chance of being somewhat bearish whatever happens guys the most important thing that you can do is learn about the cryptocurrency markets and that is why I created the cryptocurrency technical analysis Academy like I said guys we just hit 25,000 subscribers and I want to celebrate a little bit I am so so very happy and thankful that you guys have managed to make this dream of mine come true I've been dreaming about being a youtuber ever since like ten years ago when I first got onto crypto when I first got onto YouTube when I first started watching YouTube I would watch a lot of YouTube I was not in the same position eight nine years ago that I am in now and I would always want to be a youtuber I saw these other people doing YouTube videos I'm like that there's really nothing special going on here I know that I can do that I believe that I can do that and now somehow we're managing to do it and it's not because of me it's because of you like I said only about 13,000 of these accounts are mine as a joke of course for anyone who didn't catch that nevertheless guys if you guys do want to learn how to trade cryptocurrency markets and you do want to be more profitable in these markets if you already are a great way to do that is by learning it's very important that when you're getting into cryptocurrency markets or any market in general that you don't go put all of your money into the market and then hope that you're gonna make money I mean it's not Bitcoin and cryptocurrency is not a multiplication machine like you saw in your textbooks from middle school it's not you put one dollar in you multiply by three and then you get three dollars out and then you put $3 in you multiply by three and you get nine dollars out it's not like that you have to know what you're doing you have to know exactly what you're doing if you want to make money in these markets because the vast majority of people don't win their trading if you want to make money while trading and investing in these markets you need to know what you're doing and guys I will be the first one to tell you that a lot of the things not all the things but at least some of the things that you can learn in this course you can learn on your own you're watching YouTube videos and through Google and things I will tell you exactly why you don't want to do that that's the route that I took and it took me two years to get to the place where I could competently make this course so that I can actually teach you guys how to work in these markets and guys let me be honest with you it a long time it was frustrating it was so frustrating because a lot of times you don't even know what you don't know so you don't know what to go and Google you don't know what to learn and a lot of these things are not things you're gonna find on Google a lot of these things are not things you're gonna find through watching YouTube videos these are things that you have to learn either through experience or through someone who is going to tell you what's going on and the things that I talk about in this course people don't talk about on YouTube because it's valuable information if they are talking about it it's behind a course and that's why I made the cryptocurrency technical analysis Academy is because I want to be able to give you guys this information while also being able to have a business that allows me to maintain the channel so that I can continue bringing you guys videos that's how this all works because of the people because of you guys who've joined c22 a paying for the course it allows me to continue the business it allows me to pay my editor it allows me to build up everything that's going on behind the scenes you guys are gonna start seeing in the next couple of months it allows for everything that goes on with the channel and to continue so if you want to learn how to make money in the cryptocurrency market while also allowing this business to maintain itself and continue growing I would highly encourage you to click the link in the description down below will be somewhere that you can copy and paste the coupon code is 25k 2019 at checkout you can paste that in you get $40 off the course price which will bring it down to $159 a lot of people charge $500 $1,000 or $2,000 for their course guys I don't want to be that guy I want to be the guy that allows the vast majority of my subscribers to learn how to trade these markets so that you can be profitable in them anyway guys that is going to wrap it up for today's video I do hope you did enjoy the contents herein and I do hope you enjoy the rest of your day I do want to thank each and every single last one of you for watching as always and I will see you guys in the next video peace

20 thoughts on “Could This Bitcoin Head And Shoulders CRASH Bitcoin To $8,000?”

  1. But the 1k candle 🚀 scared me last week ….. miss out a 1k candle up or perhaps take 2k candle down. Trading now is with a lot off risk.

  2. your channel will reach 100K subscribers shortly, mark my words .. one of the best channels and it deserve much more than 25K .. it's just a matter of time .. probably 2 months or so for the 100K .. keep up the good work and please stay unbiased .. cheers!

  3. "When you see cryptocurrencies are falling massively against rampant gold rise, you should know the bubble is bursting." "When the mainstream funds resist to adopt bitcoin threatened by the insane gambling volatility and whale stupefaction, here left a chunk of stupid bitcoin idiots enjoying being cheated and ripped by the fat whales until the last drop of their blood.

  4. Congrats on the 25k Sub's, this video must be before the drop a little after 9:30 am? Tks for the information as always…👍🏽👊

  5. Congratulations on your 25 k subscribers Jebb. I hope bitcoin goes lower to 7 to 8 K been getting reckt lately in this chop. I have been also watching the 3 day 50 and 200 MA approaching a golden cross and watching to see if price pull back to the potential cross in about a week.

  6. I don’t think I’ve seen you do any analysis using the ichimoku cloud. Is that not a preferred indicator?

  7. Nope. 9.5 – 9.7k more than likely before 3 week consolidation.
    July 25th there will be a move.
    Look at June 25, May 25th, April, 25th.
    Bots are set..
    Late August we see 14k
    October – 18-20k .. 35% correction, then we see 30k Jan/feb 2020🤷🏽‍♂️🤯🙌🏼🚀🤗💡

  8. BTC needs to consolidate for a few months before going up again. BTC cannot go up in a Parabolic trend forever, not healthy, will crash without a consolidation.

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