 Okay, folks welcome to an impromptu video with regard to the price of Bitcoin. The price is at current this Sunday declining pretty rapidly. This is a 30 minute short. So what we're going to talk about on this commentary is whether or not Bitcoin is a bubble. Does it correlate with inflation or not? And we'll talk about where we believe that there is going to be support on Bitcoin at which you're going to have a better risk reward entry point than where we're trading at current. So before we begin, let's talk about our brand new sponsor and they are BlockFi. Earn up to 8.6% APY on your crypto. Start earning interest. Crypto is finally going mainstream and this is the new way that we're going to be doing business in the future. Crypto back loans. Take out loans against your crypto. Trade crypto. And these are the names that are involved with BlockFi, Morgan Creek Capital, Coinbase, Susquehanna and the Winklevoss twins. And if you act right now, get up to $250 in Bitcoin when you deposit $25 or more in crypto. So please take advantage, click that link below and you'll be taken to their information page and give a gift to a friend or family member by sharing that link with them. Let's get to our technical analysis of Bitcoin. Okay, so let's talk about where we are present day with Bitcoin. Today we are down over 6.5%. It appears as though we may head a little bit lower here. So the question now becomes, is this a bubble making Bitcoin noninvestable? And if it's not in a bubble, where is the best risk reward entry point? So let's address the question of whether or not it's a bubble or not. To do so, we need to go to the monthly chart. And I've mentioned this to members and viewers on our live streams. And by the way, we'll be live tonight Sunday evening, 6pm Eastern Standard Time. Please join in, click the bell button to get notified. There's a link below to get my five part free video tutorial of my five most powerful candlesticks. That's free to you. Enter your email address. You'll also get an alert 15 minutes to a half hour prior to it was going live. There's also a link where you can enter your email address just to get the notification of when we go live, 15 minutes to a half hour. Let's get back to Bitcoin monthly chart. All right, so Bitcoin on a monthly timeframe, I warned last week, beware, we have RSI, which was at that time above 90 since then, it's pulled back quite a bit. But we still have an elevated RSI 88 spot 34. That does not make it a bubble. It makes it susceptible to selling pressure due to it being technically overbought. You could see that last month, we flashed a very large wick shadow topping tail called a cupcake. It doesn't matter. All it implies is that we have sellers above and we have the same thing this month forming. This is the final trading day of February for Bitcoin. And this usually does not end well. Case in point, go back to the last time we had a correction. What type of candlestick preceded it? Very similar candlestick. But then we dropped back down into a trading range. Then we broke out. Same thing occurred back here in December of 2017 that marked the top and we pulled back. So what I think is setting up here is the beginning of probably a multi-week to a multi-month consolidation. We want to relieve this overbought condition much as what we did back here. So frankly, it's a really good time to think about that offer with BlockFi. If you're going to buy and hold, you might as well earn some interest on your crypto position. Now, here's the good part. We did this analysis several months ago. And what I have here is the reason why I believe longer term that Bitcoin is going to continue higher. Therefore, I do not believe it is a bubble. And the reason is this is that overlay here in gray line is Bitcoin relative to the correlation to the CPI. That's a consumer price index, basically inflation, which is on the rise. It trades roughly 75% of the time in lockstep with the CPI. CPI has now broken out to new higher highs. You've seen the stock market buckle of late on rising yields. Why? Because there's a fear of rising inflation. And in past history, the Federal Reserve would be stepping in right now and raising rates. They will not be doing that. They will be continuing to print money, diluting the US dollar, thus causing more inflation. So I think that right now what you're seeing is technical selling on Bitcoin. And we're going to be setting up for a higher low versus this prior low. I don't think we're heading back to 10,000. I predicted that we would break out, pull back, retest 10,000. We got that. And it was off to the races. Now, overlaid here to better illustrate the lockstep correlation is also the CPI, the consumer price index. And you could see they trade for the most part in tandem. So if you believe that there's going to be deflation, then you don't want to own Bitcoin. If you believe, as the CPI is screaming right now, that we will have inflation, you want to be an owner of Bitcoin. Let's also take a look at Bitcoin on again, a monthly timeframe. But this time we have versus the Prings Inflation Index, basically an index that tracks inflation. So this is just simply validating what we're seeing on the consumer price index. Above in gray, we have the correlation of Bitcoin relative to the Prings Inflation Index. And you can see they trade in lockstep 72% of the time, as noted here. Overlaid, again, the Prings to better visualize that they trade in tandem. This is off a little bit because it hasn't been updated for February as of yet. But you can get the drift that the Prings is rising. We've had a clean breakout here, what also broke out at the same time as the Prings Inflation Index. You guessed it, Bitcoin. Now let's talk about price support levels. I think what we'll use is a weekly chart. And as you can see, we were technically overbought on a weekly timeframe trading above the two standard deviation Bollinger Band, nearly kissing the third standard deviation Bollinger Band. We've been here before, it didn't end well. So I believe that what we're going to do here is we're going to set up a couple of support levels. Support level number one, we're very close to, that's at 42,000. The last tick on Bitcoin was 43,512. So a stone's throw away from that support level. If it fails, we can get a more dramatic pullback to 28,800. It sounds like a very dramatic pullback and it certainly is. But I think that that's going to be an extreme pullback. And where we may split the difference between 42,000 and 28,800 is right here, roughly 32,500. That's a price point where I would be very, very interested in stepping in, looking for bottoming action on Bitcoin. We could also take out our Fibonacci retracement tool and see whether or not any of these support levels I've drawn correlate with the Fibonacci retracement tool. And you can see here that the 50% retracement level oddly enough, or not oddly enough, is that it's right at 32,500 per coin. That's the 50% retracement point making it again. I think we just validated that it's a fairly attractive, I don't like red. It's a fairly attractive support level at which to add or to open up a new position. But I would show patients here, generally what happens is, is that you get an overshoot to the downside. And then what you're looking for is a reversal. We can show you what that might look like. Because you saw it before we leave here, take note of your double top, lower high, and we've broken down to a new lower low on weekly RSI. So we have more downside to go here. It's just a question of how much and how skilled we are in our ability to identify bottoming action. So what we'd be looking for is a candlestick similar to this, seeing the week of January, the 25th, where we overshot to the downside, but we reversed to close back above that 50% retracement mark at $32,500, give or take $100 or so. So in closing, folks, I do not believe that Bitcoin is in a bubble. It became technically overbought. It rallied due to the fact that inflation was on the rise. I've provided you with evidence using the Prings Inflation Index and the CPI data, which is produced by the US government, and completely underestimates inflation. That there is a huge correlation, roughly three quarters of the time, CPI and Prings trade in tandem. Inflation is only going up higher. We're seeing a reaction from an overbought condition. My guess is that tonight, when the futures market opens up, we'll see a pullback in yields and a rally in bonds. And that'll be a catalyst for further downside on Bitcoin. If I'm wrong and bonds drop and yields begin to rise, well then the fear of inflation may remain front and center as it did last week when we began to sell off inequities. So join in 6pm tonight. And don't forget, if it's your game plan to hold your crypto, why not get paid interest on it by opening up an account over at BlockFi. Visit their information landing page using the link below. And why not? I mean, I think it's incredible that you can now use crypto to take out a loan as collateral. You could trade here, get paid interest, and why not get paid up to $250 in Bitcoin when you deposit $25 or more in crypto. And with that folks, please join us again tonight at 6pm Eastern Standard Time. Like, subscribe, you know the deal. Everyone have a profitable trading week and be well.