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[Music] hey this is David for big bits and this is the Bitcoin daily update we’re gonna discuss a little bit about the price section the last day on Bitcoin maybe discuss a few topics in the news and college stream these are pretty quick streams just to catch you up on what’s going on in the day so really not much has changed of the last day although there was one minor development here and that was the four hour 50 period moving average which was holding as resistance for quite some time decided to break prices moved up it’s approaching the 200-day moving average again and see it’s touched the 200 moving day average several times since falling below it and it’s acting as resistance every time before it’s gonna be hard to say where things go I have a feeling that things are gonna remain pretty neutral for a little while I don’t think the daily averages have caught up enough to really indicate a huge potential move now one of the things I was looking at was potential double dip on the RSI to form some sort of divergence see the RSI and did quite low and what I was kind of expecting was another dip down but maybe not so far and creating a divergence but that would mean that the price would have to go even lower but it looks like the 100 a week is holding pretty well for now so that’s yet to be seen now you’ll notice the indicator that I’m looking at down here you may not recognize this again watching my channel I just published this the other day and I’ve been making a few updates on it since but this is my smooth RSI indicator and really what you’re looking at with the blue line it’s just the RSI which if you’re familiar with that indicator really a good way to measure when the prices are overbought or oversold so I have those areas it could potentially be considered overbought or oversold labeled with a red fill and a green fill appropriately somewhere in the red it’s probably a better time to sell than it is in the neutral area here and when it’s in the green that’s when prices are likely oversold and probably generally a better time to buy now it’s just this is not financial advice all right now one of the things I did do was I smoothed out the line and we’re using a double exponential moving average and with a 17 period on that double exponential moving average now what’s happening is when the RSI first enter these areas a lot of times the smooth line is not quite yet oversold and what you’ll see in these large cells are these large buys or these large time successive candles with buying or successive candles of selling you’ll notice that the RSI continues to push down or it’ll take a break and then push down or up again and so for example you can see it broke here came down up back up again and here and it went down came up a little went back down again to come up a decent amount might come back down some more now what we’re actually looking at here on these columns this is what I’m calling the histogram which is turn around borrowing from the MACD which is the difference between your actual line and the signal line on the MACD but this is a smooth dar si which is essentially what this signal line is long a 90 is just the smooth MACD line so what you’re seeing here is the difference between the RSI and the smooth dollar side and when it’s a positive difference if the current RSI is above the smooth dar si then you’re gonna have a green or a positive difference if it’s below like it is here you’ll have a red column which is a negative difference you’re probably wondering what is of the lines and those are actually arrows that are trying to help us indicate when a change in direction has occurred now what does that mean that means that look here the the smooth daraa size went up and now it’s heading down so we’re trying to identify when that change in direction occurs on that moving average on that smooth line and if it’s changing its direction from up to down it’s a red arrow pointing down and it seems to line up fairly well I haven’t back tested this on anything but I thought the features were pretty handy on the indicator so I went ahead and develop those you can see here the large increase in price earlier this year that it would have signaled to buy here at eight thousand one hundred fifty dollars and would have signal to sell after the first red candle at eleven thousand one hundred fifty so that would have been a three thousand dollar when there if you had traded one single Bitcoin so that’s just something to look at on these features give you a kind of an idea of also what we’re doing on this channel with the video series but I definitely want to make sure everyone kind of understood what we’re looking at here I hope this microphone isn’t too loud I don’t really see anyone saying anything so one assume it’s okay I know there’s not very many people watching right now but if you are watching and this is too loud or it’s too quiet please let me know this is a brand new microphone okay so back to the chart let me go back to the four hour which is where we started all right so you can see that we have reclaimed the 50 period for our as support I’m really kind of neutral on where things are gonna go it’s hard to say because we’re wedged in between several supports and resistances right now and I mean honestly if somebody tells you no they know where this is going right now they’re lying or they’re in control of the market it’s very hard to say but you can see here on the 50 period moving average on the four hour that the forecasted moving average is actually flattening out quite a bit which is a good thing if you want the price to go up in my opinion you don’t want it to continue to go down so even if price were to stay the same our moving average would stay relatively where it is it’s not gonna be drawn down by previous action which is kept it lower and you can kind of get an idea of how that’s happening because we’re no longer gonna be counting some of these big red candles from the past and the only candles that are going to be calculated going forward probably start from about here onward which is why the averages cause it’s kind of stay flat yeah I mean there’s really not a whole lot going on with it because I mean look at the chart I mean everything’s went sideways for like a day there’s really not a whole lot to say and one thing I did want to note those if you’re on trading view and you’re kind of following along with what we’re doing check the hay kinase she candles I’m probably really messing that up on the pronunciation but I believe the RSI indicator works a lot better with these it does in fact change the RSI value slightly but you can see I think the signals are a little bit better when you’re looking at than here so what I’ve been looking for when I’ve been just looking at this indicator is I want a red arrow down and I want a red histogram and not only that I want it to be oversold so this I think would have been a really good opportunity based on this indicator to sell at the end of that candle and and it was you know that was the very end of the large increase in price and whether that increase in price start way back here so using these types of candles it kind of smooths out a lot of the noise and the candles and the up-and-down and the red and green candles over time and you can get a good picture of what’s actually going on with the trend in the price now of course this doesn’t work all the time and let me move this to where you can actually see it I forget my head is hiding a lot of things sometimes but you can also see that the trend changed here but you’ll notice it isn’t super convincing and a lot of time on these types of candles what you’re looking for on a strong trend is a very large red or green candle in the direction that you’re looking for and we did have that towards the downside here but on the bounce I guess you’d call it we really don’t have much going on as far as the large candles so the trends really not picking up in this direction it’s still very well good they don’t have to start off as huge candles but as we’ve mentioned we had the 200-day moving average there to look out for you can also notice that let’s go back here before things really got impressive with the bull run earlier this year you see these started off really small with the hey can AG candles and then they got very large so even though we are small now there’s a there’s a chance that they could turn up but like I said thanks for the most part are pretty neutral right now so let me try to find some news there was one thing I looked at earlier that was really interesting that was with coinbase there was also one more thing and that was with legislative forgive it was there was a legislator who’s trying to introduce a bill to create a essentially a stable coin that’s ran and managed by the US government for the dollar to maintain its status of the primary currency and the world reserve and so forth so let me find this in just a moment the chart so you see something different while you’re waiting here let’s look at the etherion versus USD so let’s see one looks like we’re coming up against a little bit of resistance here on the USD chart let’s look at it in Bitcoin okay I’m looking too bad let’s change you back to regular candles here so we’re kind of down at that example you okay yeah I found several things that we’re gonna look at here all right so the first item here is this year’s congressman asking the Fed to consider developing a national digital currency and this is something a lot of people have kind of really express their feelings for in a very positive way in the crypto space I don’t think this is gonna really have a negative impact in fact I think it would be a very good thing for crypto because right now we’re having to trust people like tether who are I believe owned or managed at least by bid FedEx which a lot of people don’t trust them and their relationship with tether there’s all kinds of other stable coins and I think that is part of the problem with the stable coins is that they are managed by these private entities and what people who aren’t in crypto probably really want to see is they want to say hello the government okay this is the government’s currency you know this US coin this is the dollar but it’s crypto they’re not gonna understand that it’s not gonna increase in value at first probably they probably won’t understand what a tether is unless the news there’s a really good job explaining to but what it will do is create a much easier on ramp for retailer retail investments coming through on exchanges and why is that well it’s because it’s easier for these exchanges to work with crypto that it is with bank transfers if you’re following this channel you know how easy it is to send and receive money with crypto but you also have probably had to deal with exchanges and bake transfers and issues with that so if we can get a national digital currency that maybe it’s not you know on the etherion blockchain obviously it’s probably gonna be its own blockchain if it is one or maybe it’s even just a centralized system but as long as there is some sort of central figure here and it’s all digital and things can happen instantly or close to instantly like with many different blockchain products it really is going to ease the on ramping for retail investors onto these exchanges and if you’re thinking about you know eventually getting on these big brokerages like let’s say crypto comes to e-trade or something like that they’re probably not going to be using tether on each trade and there they would want something like this which is sponsored essentially by the government to act as a reserve which is what a lot of people seem to be afraid of a Bitcoin it’s not backed by anything so I definitely think this is something good for them to look at I do think it will be a very long time for this to happen at least in crypto time you know they could probably start to get the ball rolling there’s probably gonna be research committees if there isn’t already there’s gonna be a lot of work put into it before they do this you gotta think this is a monumental change and it’s the government those two things don’t go together very well so it’s gonna take a long time to get anything like this to actually happen there have been other countries looking at a national digital currency or a national cryptocurrency tethered to their national currency with reserves held and a central bank somewhere but they aren’t the world reserve currency so they can take a little bit more risk even though they are taking their time the the US dollar means to be protected and I know that sounds weird coming for someone in crypto but it does because it holds up a lot of the economy and throughout the world so having a smooth transition from where it is now until digital currency is a great start and I think it would ease a lot of the concerns people have about Libra and other projects like that because I mean all Libra is essentially as it’s just tokens I mean I don’t really understand what the big deal is about any other type of coins they’re essentially just tokens or the dollar I mean I don’t see what the difference is if you were to go into chuck-e-cheese and by quarter tokens and then hand them to somebody else and they start using them as a currency for some reason other businesses start accepting chuck-e-cheese tokens who cares I mean personally but definitely something very interesting to keep an eye on like I said this is gonna take a long time to get to any actual advance on it but something kind of related to that is the coin base is gonna start offering interest on the USD see stable coin excuse me now the USD see stable coin is or let’s just say it was created I think by one of their partners or owners something like that I think it was square who I believe owns coin base it’s hard to keep up with all the companies involved with crypto and who owns who but essentially there’s a connection with coin base and us DC and if you hold us DC on coinbase you’re gonna get paid one and a quarter percent interest on what you’re holding and I think from what I read it’s gonna be once a month so this is probably your average percentage yield over the year divide that by 12 is essentially and you know that’s what you’re gonna get monthly so if you had $10,000 1% when you’re getting what divide that by 12 it’s a few bucks so it’s not huge money but if you’re holding a ton of money it’s better than nothing and if you’re parking it on an exchange riding at a bear market it’s probably better than nothing and coinbase probably needs a way to compete with other exchanges this is probably what I think this is coming from is that you have all of these other foreign exchanges like finance who coined Hubie that are all offering some sort of dividend or bonus for holding their tokens but what was coinbase offering you that could compete with that nothing and this probably isn’t enough to actually compete but it is enough to draw some attention and probably keep some people from being tempted to do to those other foreign exchanges I know if I had a ton of money and I was wanting it to be available to trade at any given time I wouldn’t want it to be earning as well so if you had a ton of money sitting on coinbase I mean in the past what you would probably want to do is you would probably want to draw it put it somewhere where it would earn money while you’re waiting then transfer it in and then purchase what you need so doing this kind of kind of incentivizes people to keep their money on the exchange and it also incentivizes people to actually use the exchange so it’s probably a very good thing for point base that they’re doing this I’m interested to see what anyone else thinks if they think this is actually a good idea or not all right so we have one more thing here and this was the article it’s too soon to write off bagged and I completely agree and I’ve covered this in the channel before people are rushing to say that it’s a failure and so forth and I’ve already shown you that based on the volume with just one product the u.s. value traded with that one product on the very first day of its launch would have made it to one hundred and thirty fifth and rank crypto exchange in all of the world with one product and what most people consider a failing launch as far as volume is concerned it wasn’t terrible and it hasn’t really improved much but with these things you you’re opening the door for these to be done in a regulated manner in the way that if you do want the the institutional investors to come in this has to be there so if you think back as a failure and you think back was stupid we shouldn’t have done back then you know that’s your opinion but if you’re actually one of those people who want institutional investors to come in and you want them to start buying up the Bitcoin then you need something like this to be there so you have to take the good with the bad and these things can grow over time a lot of people who are doing the institutional investing the people who are on these platforms probably don’t even know what bitcoin is well they’ve heard of Bitcoin and they think they know a Bitcoin is but they probably don’t so you’ll see a lot of inexperienced people probably taking their time to learn about it and like I said these people will probably think they know what Bitcoin is but at the same time they’re not gonna rush into things these people are smart they’ve made a lot of money that’s why they’re in the jobs that they have they’re gonna take their time they’re gonna learn about what’s going on here they have to learn this is an entirely new thing and if they’re gonna have to learn Bitcoin then I’ve really learned Bitcoin they’re probably gonna have to learn a theory they’re gonna have to understand what a smart crunch like this they’re gonna have to learn all about it because some of these other products are probably gonna end up coming there too but I really appreciate everyone for watching I’m gonna take a break for a short bit on the live streams I have some contents ready to roll out over the next week or two and that’s gonna keep things busy for the channel I have to do some traveling so those videos for the scripting tutorial are going to cover the content for the channel for the next week or two and you can check out my profile on tradingview to get the source code for the scripts the smooth RSI this source code isn’t available but you can get the indicator add it to your charts if you want I personally think it’s pretty interesting definitely not recommending you trade off of it this is just something I kind of developed for fun but if you want to take a look at it and play around with it for yourself you’re more than welcome to it’s on trading view just check out my profile big bits IO I’m trading you you can see all the stuff that I’ve done now thank you once again and I look forward to seeing you all again thank you you you
