 So yesterday the entire market dropped based on news from Gemini saying that they had two separate service disruptions. Apparently this was caused by Ethereum as it broke $4,000 and set new all-time highs up at $4,200. People of course started to FOMO in and YOLO their life savings. This caused two separate service disruptions on Gemini's and although it was resolved rather quickly and they assured that all customers funds were safe, people began to panic. It was too late. The damage had been done. When there's panic, there's selling. When there's panic and selling, that means the price begins to fall. When the prices fall, that means that traders begin to stop out of their long positions, which means that they sell more positions, which means that the price drops more. Now as the price continues to fall, overleveraged traders that did not use the stop loss start to get liquidated. When they get liquidated, it completely closes out their positions and sells more, which causes of course an acceleration of the selling pressure. Now with the price falling extremely fast, people panic even more and sell more. This is usually what causes such big drops like we saw yesterday. Ethereum had about a 13.5% drop in a matter of an hour. It is the perfect storm. But on the bright side, dumps present opportunity. You can either cry and whine about the price falling or make the best of this opportunity by the dip and make more money, especially with the $5,000 milestone so close by. That's what we're talking about today. Hey, what's up, Jay here and welcome to Bitcoin Daily bringing you guys the best tips, tutorials, and ideas to help you guys become profitable and successful investors. The goal of this channel is to empower you guys with the knowledge and resources to help you guys get up to that next level. So guys, make sure to smash the like button guys. And if you're new here, don't forget to hit that subscribe button as we're on our way to 10,000 subscribers. So as you guys can see over the weekend, we broke that $4,000 mark. Last week, we broke a $3,000 for the first time, then we consolidated here for a bit right underneath that $3,500 area. So after a little bit of consolidation under that $4,000 mark, Ethereum said, all right, I've had enough, I'm ready to go and popped right above that $4,000 mark running all the way up to $4,213 as a new all time high. Of course, after that, we got the news yesterday, which was an overreaction for sure, because we dropped 13% from basically $4,200 where we were all the way down to about $36,50. So that was a huge drop for no reason. Luckily, very quickly, we bounced right back up. I know that a lot of people were able to grab some really nice profits during this opportunity. Ever since then, we've kind of been consolidating a bit overnight. And then this morning, we've slowly been grinding our way back up, currently sitting above $4,000. So $4,000 for sure is going to be a good support level here. I like entries there. Anytime it goes back to that $4,000 range, I'm setting up new entries and I'm taking profits on the way up. However, for the big picture, that big picture number that we're looking for right now is $5,000. Not much really stands in the way of Ethereum honestly going up to that $5,000 mark. And that's going to be a major, major milestone. So $5,000 is going to be halfway to $10,000 where a lot of people are saying that Ethereum's going to go during this bull cycle. So because of that, halfway there is a big psychological number that a lot of people will probably be taking profits at. So we can expect a lot of selling pressure at $5,000, right? Now another thing that's kind of, I've been watching here, I've gone back in history because looking at the way that Ethereum's been moving lately reminds me a lot of Bitcoin back in 2017. So I was wondering, I was like, hmm, I wonder what Bitcoin did at the same exact levels because this feels so much like deja vu of Bitcoin in 2017, right? So of course, what I did was go back to 2017 when Bitcoin was at the exact same price range as Ethereum is right now. So this is Bitcoin on the top back in 2017. And this is Ethereum right now. You can see here when Bitcoin was just under $3,000 that it was just kind of consolidating and set up this little bull flag here and then finally had its breakthrough at $3,000. If you look here at Ethereum, it kind of has a very similar price pattern where it was just kind of consolidating had a bull flag here, which propped it up back right up to that 3,000 level and then boom, that big green candle. So look at this big green candle. Look at this big green candle, very, very similar moves there. After that, you can see that there was a little consolidation and then a move up to that $4,000 level. If you look here, you can see kind of the same thing, a bit of consolidation and boom, another big green candle up breaking that $4,000 level. So after the break up to $4,000, you do see that there was a test right here, right? After we're already at $4,000. Now, this one ran up a little bit higher. So it looks like Bitcoin ran up to about $4,500. We ran up to about $4,200. And then there was a drop back down to that $4,500. Let's see what it was, $3,550. So Ethereum ran up to $4,200 and had a drop back down to $3,650, right? Then we had some more consolidation here. And eventually we got the pop back up to $5,000. And that's currently where I think we are right now, right after this dip down kind of what happened right there. And then some consolidation as it grinds its way back up until we eventually hit that $5,000 mark, which would be around here. Now it looks like the time it took between the time it hit, it had this dip to the time when it hit $5,000 was around a little over a week. So we use that same timeframe, we could say that maybe around the 20th to 21st could be the time when we would hit that price, right? And that's obviously could be way different. I'm just going as far as what Bitcoin did to try to have an idea of what we can see. But the timing could be completely different. Now what could be the same is this reaction here. Look at this drop. So Bitcoin was basically just moving up, up, up, up, up, if you even look at the RSI, they're kind of similar in their movement. So currently when it hit $4,000, it was oversold kind of the same thing here when that oversold territory now. And then eventually when it got way up there to $5,000, it was very overbought. And then that's when it saw it's dumped down to oversold territory before it continued up. Now we could see we could have a similar reaction here where the price at $5,000, we see we get a lot of selling pressure, we could drop down. Now I'm not saying we're going to see a 40% correction, 41% correction, but we can see some sort of correction at that $5,000 mark which shoots us back down. You can see here for Bitcoin, it actually shot it back down to basically the $3,000 level, $2,900. So I'm not saying that Bitcoin's going to go to $5,000 and drop down to $3,000 or sub $3,000, but we can see some sort of reaction where we get a correction here. It might be a correction back down to $4,000, might maybe a correction back down to $35,000, $50,000, $36,000, $50,000, it could be so many different case scenarios. The main idea that I'm trying to get through and I'm pointing out for you guys is a possibility that that $5,000 milestone we get a reaction like this where we have some sort of correction pullback before the price can continue up. And the reason why is because there's several things that are coming up in the charts right now for Ethereum. So before we jump into the chart of Ethereum at the different bearish things kind of pointing at a possible correction at some point here, let's go ahead and make sure that you guys have smashed that like button. So if you guys believe that Ethereum will hit $5,000 on the count of three, we're going to smash the like button. You guys ready? One, two, three, boom. Alrighty guys, now that you have smashed the like button, don't forget to subscribe to the channel if you guys are new here. Also turn on that notification bell so you're notified as soon as we post new videos. Alright guys, so if we look here at the four hour chart, right? And we pull up this RSI, you're going to see something a little off, right? So you'll see that we have a higher high here, right? And a lower high. But if we look at the price, we had the high, we have a lower high and a higher high. Do you remember what that means guys? That is a bearish divergence signal. If we pull up the definition here on what bearish divergence is, it says that it occurs when the RSI creates an overbought reading followed by a lower high that matches corresponding higher highs on the price. So that is exactly what we're seeing here right now. We see that the trend on the RSI is going down, but the trend on the price is going up, meaning that the price and the momentum are not agreeing with each other. At some point it has to correct where they're both in sync. That could be a consolidation that could be a correction, you know, it could be a lot of different things. It doesn't necessarily mean a dump, but it means that something at some point has to happen either consolidation for a period of time, or there has to be some sort of dump off to reset the RSI and reset the price, get them back in sync. Now, if you look at it from the daily standpoint here, you can see that we are definitely overbought, we're in overbought territory. And, you know, it hasn't really been agreeing, it hasn't been matching with the price. You can see here went from a high to a higher high, but here it did not go from a high to a higher high. It's just kind of been in the same range, right? And then finally, if we pull up the weekly chart here, you can see that this goes from a way overbought signal way up here all the way down here, right? So that's definitely a higher high and a lower high. And if we look at the price, the price is way off because this high was way down here. And look at where the new high is. So it's definitely not agreeing with each other. So now we definitely do not make decisions, trading decisions based on over bought signals or bearish and bullish divergence signals alone. This is basically things that you get and you have to put it, it has to make sense with other movements in the market and other things going on in the market to kind of, you know, it has to be a part of a bigger story. It is not just that one signal means that it's going to drop, right? So that's why I'm telling you guys that the first signal is that $5,000 milestone is huge halfway to 10K I'm expecting selling pressure there, right? Number two is if we that right now Ethereum is looking a lot like Bitcoin back in 2017. Then when we looked at Bitcoin back in 2017, we saw the price reaction that it had at 5,000 when it was at similar levels and it dropped down 40%. And then number three levels in the RSI are very overbought right now at different timeframes. And as you can see, there is bearish divergence in both in the four hour chart, there's a bearish divergence in the daily chart, there's a bearish divergence on the weekly chart. So there are three different things that kind of point to the same scenario, you know, kind of telling you was trying to tell you a story is trying to tell you what could be coming, which is some sort of doesn't have to be a pullback, but it could be a consolidation period, or it could be some sort of pullback before it can continue on its way up. So I think if we do see something like that, it will happen at the $5,000 mark. That's just my personal opinion. Of course, it is not financial advice guys. So do your own research and then, you know, do with with this information what you would like. So I hope you guys have enjoyed this video. I hope it opened your mind up a little bit and you could see things from different perspectives, even though I'm very, very bullish on Bitcoin on crypto on Ethereum, I try to keep an open mind for all case scenarios so that I don't make decisions based on emotions, but more on logic and you know, what makes sense. Thank you guys so much for watching this video. If you guys are new here, make sure to subscribe to the channel and turn on the notification bell. If you guys have been here for a while, make sure to smash that like button. Don't forget, let's get this video to over 100 likes. Alrighty guys, I will see you on tomorrow's video. As always, peace and love.