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YouTube Video Transcript
[Music] hey this is David for big bits and I just wanted to cover a few things tonight I got to miss unfortunately the night of the big crash as you can see on the chart for Bitcoin I was really keeping my eye on that at the Bollinger pants back on here while I’m thinking about it see if this will cooperate but see is the stream still showing the intro video over and over no okay okay yeah it’s just bad I’m still getting used to the live stream stuff there’s such a delay on it but anyway back to the chart here I got to miss the giant crash here and as I was kind of expecting it stalled out at the 200-day moving average this is just the simple moving average and you can kind of get an idea with the indicator that I’ve been working on in the indicator development series of just kind of where this is and actually let me see there might be a new setting in here that we can use it’s really useful here it is I’m going to drill down into this chart let’s look at it on the hourly excellent okay so I made a few changes to the indicator we’ve been working on and now it’s gonna show the 200-day moving average here in the middle of the one-hour chart this is what you call [Music] specifying the moving average to a different resolution so on trading view they refer to the different time frames as resolutions in the code and we’re looking at a one-hour resolution right now you can see the 50 and 100 on the one hour but this is showing you the 200-day moving average on the one hour chart which is pretty handy you can kind of see how the price has written directly on that and it’s gonna continue to slowly creep up throughout the day and throughout the day so you can see the projection the projections not right I still got to fix that for the the indicator I’m working on but you can tell it’s probably gonna continue moving up like this until the price goes beneath it but you can see how it acted as kind of a support here which is what I was expecting now I will admit when it went pretty much straight down to here I had a lot less faith that it was gonna hold and in which case there’s a few other areas that people are looking at but I was pretty pleased to see that it bounced back and it’s holding here now I don’t know if it’s gonna hold this 200-day moving average and of course these are all just kind of my thoughts here but I don’t think it’s gonna hold the 200-day moving average but I would be very happy if it did a lot of this stuff were other indicators a lot of this stuff is oversold quite a bit it was already oversold honestly before we even hit that huge crash and what was the other one I like to use to cast a car si okay all right so you can see it was already kind of oversold before the huge dump and now it’s recovered and it’s been overbought but you’ve seen the prices actually kind of moved down so it’s just kind of in a consolidation area right now and we’ll see how it reacts but you know I’m not too convinced usually when there’s a major move on the MACD it’ll consolidate MACD move up slowly over time and then it’ll usually kind of make up its bond either a half way between halfway and zero usually to cross back down or right before it hits zero it usually shoots back up if it pumps back up on the price again so we’ll see how that does I am NOT looking for any position here personally i targeted 200-day moving average I might continue averaging in here I’d plan to average in here so I probably will but we’ll see I think there might be room beneath this and even if I don’t average in right now I’m still happy with where I am personally so all right let’s take a look at some other stuff that’s going on there were some other ideas out there with the Bitcoin price and some of these I gotta say they’re expecting a huge move i I don’t see I I think just some people really enjoy being like the ultimate bear or the ultimate bull on trading view or social media in general like they always have to be the person who says that bitcoins gonna be a million dollars or they got to be the person who says it’s going to zero reality is it’s somewhere somewhere in between for a very very long time until there’s a huge issue with Bitcoin or it takes over so I don’t understand these people call him for this kind of stuff I think they just want attention and that’s not my style obviously so as far as the title of the video the Bitcoin crash prevention that was the 200-day moving average for now of course it might not be what are these people calling for support this person is looking for the price to go down to here it would be a pretty huge deal if Bitcoin work to go back below 6.5 K I think this was so if it was to go back below that that’s a huge hurdle to overcome because there’s a lot of volume that traded in this area and if you go back below it it’ll probably act as resistance again coming up and that’s a that’s a hard one to beat and this one I don’t see how they think they’re gonna draw a trend like this after just one big move really you just have the one drawing here and trying to draw a channel out of it after one day it’s kind of ridiculous but you never know you uh this one I’ve read this one he’s just joking around talking about it going 2-0 but it is pretty bearish lots of bear signals of course after a major sale like that [Music] like I said I’m personally considering averaging in if this is a bull market again then I think as I said in other videos if it is a bull market the 200-day probably needs to hold I know a lot of people were looking for the 21 day EMA that didn’t hold it was somewhere up here and it didn’t hold so price drop below that now if you’re hoping for a bull market then you probably really want the 200-day to hold the 200-day doesn’t hold then I think the best we can hope for is probably a sideways market for the rest of the year but I don’t know and there’s really no way to tell and that that kind of leads me to my next point with that crash was the price sliding $1,000 in 30 minutes and and most of it is related to pit mix margin calls now if you were watching the price you’ll notice that it shot down really quick and just kind of continued going and at one point coinbase had a 500 or so dollar premium over most of the other exchanges I think that has a lot to do with the fact that coinbase is trading real money and bit Mex is you know paper margin for the most part up to 100 times so when these people get liquidated on bit mix the exchange has to sell off if they were long it has to sell off their position to close it and when they sell off a position if the position is too big for what’s next in the order book it’s just going to continue to eat down the order book as it liquidates the position and what happened was there was a huge amount of liquidations you can see over 600 million dollars in liquidations even at 100 times margin that’s six million dollars and I doubt they had a hundred times margin that they get liquidated most were probably 20 to 25 times margin which would make this what what’s a quarter of like 150 mil at least that much money just liquidated most likely and that’s but the the effect is though on the order book that the price gets pushed down on this exchange with those liquidations that’s six hundred million so even though these were using leverage there might be a lot of smaller orders beneath it and that’s why when the liquidations occur the larger liquidations if there aren’t large orders to fill the large liquidations it will just kind of continue to push the price down and down until eventually all of the liquidator liquidated orders get filled now there could be like a doomsday scenario for the exchange if the order book was just so thin that the price just kept dropping and it cleared out the order book that’s that’s happened before on other exchanges that it’s gonna happen on bit mechs anytime soon just cuz they have so much liquidity in the order book but it’s just something to keep an eye keep in your mind when you’re dealing with these huge consolidation periods like with Bitcoin go back to the one day chart all right there’s a lot of consolidation here went on for months and then it finally broke there’s a lot of people who went long you know with a lot of leverage all throughout this consolidation period who hadn’t left their position because they thought it was still gonna break up and go to $20,000.00 well when it broke and it went short I went it was when it crashed all of these people who were holding onto their positions with high leverage got liquidated and like I just discussed the liquidations kept pushing the price down and down and it kind of finally found the crash prevention area at the 200-day moving average thank goodness but yeah that’s a huge effect on the market when you have something like that and back to my point coin base was trading at a 500 dollar premium probably because they didn’t have the leverage that bit makes does and I know a lot of other exchanges followed bit mix actually and followed the bit mix price and they stayed down with bit mix and eventually I think they all kind of caught up the coin base now some people can claim certain exchanges or leaders or are not leaders but in the end it usually kind of balances out so even though coinbase had the premium and the others were much further ahead the other ones came up to coin base but corn base also came down to them and the premium it got wiped away eventually so I can’t really say which one’s a leader or not but definitely coinbase staying higher with that premium did have an effect I think if coin base and was at the same price at this low here it might have kept going because the people on bit mix would have continued to shorted because they would have seen you know all the other exchanges are down here but when you’re already down this low on a single day and you see another exchange is still 500 dollars behind and it doesn’t seem to want to move lower then you’re gonna be a lot more hesitant to short down here a huge percentage move it’s probably gonna be hard to short down there anyway but you see another exchange a major exchange with huge volume that still staying way above you you’re gonna be pretty hesitant to to short still that’s my idea that’s my thought okay so that covers that one some other news that happened I don’t have the article pulled up or anything but the House Committee met regarding cryptocurrency and all kinds of stuff the sec met with the house committee they talked about crypto hester peter said she would like a safe haven for utility tokens which personally I think is a great idea the others don’t really seem too thrilled that especially Jake Layton the Commissioner he doesn’t really seem like he likes it he says they’ve had a lot of discussion on the topic but who knows they definitely want to get involved and it’s just funny when you watch the legislators on the committee talking to the SEC chairs they are only really concerned with Libra they don’t care too much about these other crypto currencies or tokens all of the questions about cryptocurrency were pretty much related to Libra and how it’s going to try and tackle the dollar somehow and it’s funny because I don’t think Libra is even trying to do that so much as Bitcoin is one I think one of the legislators mentioned that you know it’s part of the the crypto culture to want to kind of take over the dollar which you know maybe it is and maybe they see it as a better system I’m not really sure what my opinion is on that in the long run but the point is they aren’t really looking at the markets that we’re looking at if you’re following my type of channel they’re not looking at these altcoins they have no idea what an altcoin is they have no idea what a token is on the etherion blockchain they don’t have any idea what’s going on they have no idea what to even ask of the SEC the SEC seems a little bit more but they seem to be really hesitant to take any action I think Hester Pierce was the only one who really wanted to be proactive so much on the issue the other ones say they want to be proactive but I think she’s the only one I’ve ever seen actually try to be proactive on the issue but yeah that covers that meeting some other news today was that BitFenix can stop turning over documents to the New York Attorney General that probably is a very good thing for them I didn’t bother to read the article essentially they were being investigated by the New York I forget what district it is but whatever they were being investigated and having to turn over all kinds of documents the fact that they don’t have to do that now and they can stop it’s probably a really good thing I think they filed an appeal so that they could essentially dismiss the case because they say they don’t serve New York customers and they have blocked US citizens so maybe they aren’t going to the links that they need to but I think they’re doing what they’re saying they’re doing they’re trying to block them maybe it’s not enough but they have gotten the approval to stop turning over documents which is probably a good thing for them very good thing for them and since they are tied to tether that’s probably good thing for tether and BitFenix and potentially a bull market because if you remember in the last bull market a lot of tether was printed or minted by people or bid Phoenix buying into crypto itself they would print tether and they would buy crypto with it I don’t know who bought the tethered to be printed or what or whether it was bid Phoenix I don’t know the whole story behind that but it seemed like in the last bull run in 2017 whenever a ton of tether was printed since I get all went back into the market pretty quick and then when the bear market started seemed like there wasn’t any tether to be printed so maybe that’s a good sign that that’ll kick back in again whether it’s legitimate or not I have no idea another piece of good news as far as adoption so phi is starting to allow you to buy cryptocurrency on its app there’s actually a little thing where you can get $25 in Bitcoin on your first crypto trade of ten dollars or more it’s actually pretty good but the problem is you’re gonna have to be a part of their app and I’ve really seen a lot of advertising from so far I haven’t really looked into a lot of their products but any financial organization who advertises as much as that to where I hear about them so often that I know who they are and I know about their different products without even trying I don’t really like it but you know maybe they’re good but if I first heard about him a couple years ago I think it was a couple years ago they were want to do student loan refinancing and a lot of the student loan refinancing that’s been done in the last few years has been pretty predatory I have student loans myself and I will get calls all the time you know hey we can refinance your student loans your student loans might be eligible for forgiveness call here the thing is I I’ve already set up everything I need to with my student loans with my student loan knife-cut loan servicer so there’s a lot of predatory stuff going on I don’t think so fowl necessarily was involved in the predatory type things but it’s hard to put that past any sort of financial institution that could be as big as that just my thoughts I don’t think there’s really anything wrong with it but the fact they are doing crypto and bringing more adoption it’s kind of like Robin Hood where it’s it’s putting it in front of the faces of these people more often eventually you know you’re gonna get the so Phi app for your student loans for example but you know two tabs over from your student loans you’re gonna see invest in crypto or you know buy crypto and transfer it to someone to make a payment eventually it’s just going to kind of leaked over one over the other and you’re gonna see you know pay your student loans with a crypto that could very well happen we’ll see but definitely very good news even though I have mixed opinions about sofa but that will do it for the video today I think that covers everything I really wanted to and you know just have a good one thank you all and check out the trading view profile I have I think posted some more scripts and if you’re following along with that series you’ll want to check out the new one that I posted with forecasting has actually posted out there now and I’ve started on with the one that I cannot teach you with earlier that has the the resolution specific for each moving average so thank you all for watching and look forward to seeing you all again have a good one [Music]
