 Guys, it has been a rough few days in the crypto market as of late. Let's have a recap of what's been going on for the past week. So this all started with the inflation news that spooked the stock market causing the stock market to fall and Bitcoin kind of followed at that point. At that point, we're more or less right here at this tipping point at that $58,000 level. And that was followed by this Elon Musk tweet stating that Tesla would no longer be accepting Bitcoin as a form of payment, but that they would continue to hold Bitcoin. So as you guys can see, we already had selling pressure on that day. And once that that tweet went out, which was after four straight red candles on the four hour chart, once that tweet went out, then that's when we got this huge drop right here in the market. That was also on the 12th of May. Then on the day after Bloomberg reported an exaggerated report is what it was. I'm saying that Binance faced a probe by the US money laundering and tax sluice. So this was just made up to continue the panic in the market and, you know, continue the push and the selling pressure to the downside. You can see that the market kind of went down there. And then when people realized that it was not true, it started picking back up a bit again and we were able to write it up to about 51,500. So at that point we were we went into the weekend and we were hanging around just above $48,000 basically and just under $50,000 as you guys can see here before Elon Musk started tweeting. You can see this tweet was yesterday. Somebody tweeted Bitcoiners are going to slap themselves next quarters when they find out Tesla dumped the rest of their Bitcoin holdings with the amount of hate Elon Musk is getting. I wouldn't blame him. And then he just replied in deed. So a lot of people took this as if he was implying that either one they sold Tesla sold all its Bitcoin holdings or two Tesla was going to sell the Bitcoin holdings that it had. Of course this had a huge impact in the market overall as you guys can see here. We had another huge drop basically from around the $49,000 area. We dropped all the way down to about what was the low here $42,000. So we hit $42,000 for the first time in months. And that was an all Elon continued to tweet at people and kind of attack Bitcoin to people that were trying to defend Bitcoin and including this tweet right here saying hey cryptocurrency experts ever heard of PayPal. It's possible that maybe that I know more than you realize about how money works. So he pulled out the PayPal card yesterday. Also Michael Sailor had replied to him where basically Elon Musk just replied back Sailor Moon. And then he told Michael Sailor that he should wear the outfit for Halloween but with Bitcoin tattooed high on his thighs. So this all rocketed the prices of Bitcoin to a new low of $42,100 on Bybit. I'm not sure on the other exchanges. And suddenly we got a bounce back to the upside. This was due to this tweet here where someone tweeted Bitcoin is down 20% since Elon Musk started posting. And you wonder why some people are mad. Then Elon Musk tweeted to clarify speculation Tesla has not sold any Bitcoin. He tweeted this basically at around 2am Eastern Standard Time. So that's when we got the bounce back up. We went up as high as $45,876 from the $42,000 low. And then of course the equities market opened again this morning and equities have been red. Wall Street has been down. So that's also been affecting the Bitcoin price. Remember that when we started this drop it all started because of the stock market being red. So with the selling pressure continuing in the stock market, the stock market continuing to be in fear and uncertainty. It's also been affecting the Bitcoin price. So when does the selling pressure stop? Where do we go from here? We're going to dive in and see if we can kind of figure this out together. Stay tuned. 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 get up to that next level. So make sure that you guys smash the like button on this video. And if you guys are new here, don't forget to subscribe and turn on the notification bell. So looking here at the chart, you guys can see what we spoke about on Friday. That was this head and shoulders as you guys can see here a pattern that popped up on the chart. And we spoke about it. We said that this level right here was what would tell us which way, you know, in which pattern would play out on Friday's video. So we had pointed out the head and shoulders and we pointed out this double bottom here. You can see it tried. It was going for that double bottom bounce. But we got with with all the tweets from Elon, there's just so much selling pressure, so much panic, fear and uncertainty in the markets that it's now dropping in further. Basically claiming that that the head and shoulders pattern is the winner here. So we have to look at this now from a head and shoulders pattern perspective. So based on this head and shoulders pattern, what can we expect? So based on the head and shoulders pattern theory, the way it works for price targets, once you know, it breaks down in favor of the head and shoulders pattern, you're supposed to measure from the neckline, which is around here all the way to the top of the head. So if we measure the neckline to the top of the head, that gives us this right here, which I already put over here, you can see from the breakdown at the neckline all the way down to the bottom, which would be the price target, which is a measurement of this right here. So what does that give us? That gives us a price target of around $30,000 if this pattern plays out fully. Now patterns don't always play out, you know, 100%, it might, you know, start down and somewhere find a bounce, you know, depending on many, many other factors. But just solely going off of this exact pattern, that gives us a price target of between $32,000 to $30,000 if we continue down and if we continue following the price target for the head and shoulders pattern. So now you're probably asking, but Jay, like, is this it then? Like, are we going down to $30,000? Is there no bullish case scenario for us to get a bounce and get out of this mess? I'm so glad you asked. There is a bullish case scenario still that we have found here and we will go over it right now. But first, make sure to smash the like button on the video. The more you guys smash that like button, the more this bullish case scenario can come true. So on the count of three, we're all going to like this video. Are you guys ready? One, two, three, boom. All right, you guys also make sure to subscribe to the channel if you guys are new here and turn on the notification bell. All right, so looking for the possible bullish scenario in this situation, what we can see, we can see something similar here that we saw before here when we had that breakout there. We also saw it again over here. So it's not something that's a surprise. It's not the first time that we see this pattern. Now what is this pattern you may be asking? So this is a falling wedge pattern. You can see here that the falling wedge pattern is a bullish pattern. You can see here that the falling wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. So if we look at some images here of falling wedge patterns, you can see the similarities. If you look at this here and then you look back at the pattern that we're currently looking at here, very, very similar patterns. Now when trying to project and predict the breakout and the price target for the breakout, what you're doing is measuring the bottom of the falling wedge and the top channel of the falling wedge. Then the breakout usually happens towards the end of the falling wedge. So if we were looking at it here, that would basically mean that the breakout could happen in the next what two, three, four days. So it would have to happen sometime this week for us to get a bounce to the upside. Now if you were to measure the bottom here of this falling wedge with more or less where the top would be, this would give us a small move right now at the moment, but it would give us a move up possibly back to that 54, $55,000 range, depending where the breakout happens. If we were to say that it could happen today, that would take us up to about that $58,000 range where it's basically where we started. If it happened tomorrow, that could be around the $57,000 range. If it happened the day after that, it would be around 55, the day after that, it would take us to 53 and then the day after that it would be around that $52,000 range. So the price target from a falling wedge all depends on where the breakout happens, but it is a bullish signal and it is a reversal signal from a fall. Now you have to see what else is in confluence with this pattern. So the next thing we're going to look at here is the 42 to $40,000 support zones. You guys already know $42,000 at one point was a previous all-time high as you guys can see right here. And this is pretty much because it was all-time high, it is a good support here. So this is pretty much what's been holding the price at its current support levels here. We have to look all the way back to January when we hit that all-time high $42,000. So we have the pattern, the falling wedge pattern, we have a support level there that's holding us as well that previous all-time high and the $40,000 mark, which is a big whole number, big psychological number. What else do we have for this bullish case scenario? That next thing would be we're oversold on the RSI. So RSI levels are currently entering that oversold territory right now. Last time that we were oversold, which was at some point last month, we did have a move up. It basically went from $47,000 and moved all the way up to about $59,000, almost $60,000. So that was what, a $12,000 move. The time before that that we were at these same levels was as far as the RSI on the daily chart wasn't even any time. It was the last time that we saw this level other than these two times, right? We saw it once here in September, which you already know after September is when we reached a new all-time highs. And before that was, look at this, in March when we had the pandemic news that the entire market sank and this was right before it took off here. So that's three things now that we have in the favor of a bullish case scenario argument, right? Now as always, that's not really enough still. You want to look for more confluence in the market. You want to look at market sentiment. You want to look at a lot of different things. So another thing here, we look at the fear and greed index. We're at 27. Fear yesterday, we actually were even lower. We were at 20. If you look at the past year, that's the lowest, that's the most fear that's been in the market in a year. Last time we hit 20 or under that was during the pandemic last year in March in April. April was the last time that we hit a number like 20, which we hit yesterday. You guys know how that old saying goes, sell when there's greed in the market and buy when there's fear in the market. So this definitely presents itself as a good opportunity to buy for long-term positions. If that's not enough for you guys, you could always zoom out and look at the weekly chart here and guys, what pattern is this? This is a bull flag here. So you can clearly draw a bull flag pattern here on the longer term time frame. You can see that the RSI is no longer oversold on the weekly, it is now neutral. And if you go even further back to the monthly timeframe, you can see kind of the same thing here. RSI was very oversold and now for the first time during this run, it's going back into the neutral territory. I know at this point a 35% drop seems like the end of the world, but if we look back in history and we look back to see what happened during the 2017 bull run, we can see that this was the normal. So many of you might have forgot already, but even back in January, we had a 31% correction. Then if you look back at 2017, we had corrections of 30%. We had corrections of 41%, 39% and 33%. That gives you an average of about 35.75% average drawdowns on corrections. And that's pretty much exactly where we are on this correction, 35% pullback. All right, guys, so we're not going to cover any trade setups for this week because we believe that right now you shouldn't be entering short term trades because there's so much uncertainty in the market. It's better to right now doing dips, this drastic to add on to your long term positions. So this is the opportunity that you guys have been waiting for. If you haven't bought it yet or if you bought in really high, this is your chance to add some more to your long term portfolio to average down that cost. If you've taken profits along the way, this is your time and your chance, your opportunity to add to enter again at lower cost for your long term portfolios. Now, remember, always take calculated risk, always have an exit plan and don't put all your money into it all at once. Don't put money that you're going to need right now or anytime soon. You know, you want to invest money that you're willing to lose, you're willing to risk because at the end of the day, this is an investment and it is risky. You can lose your money. Thank you guys so much for watching this video. So the main level that we're going to have to reclaim here is we're first all, we have to stick above 42,000, right? We have to stay for sure 100% above 40,000 fall below 40,000 could take us to this $30,000 price target here. So we must stay above 40 and if we can above 42 to be safe. And then we need to see a break back above $48,000. We still won't be out of the woods, but we'll be possibly out of that $30,000 target. If we can break that, it'll also be a breakout here on this pattern, the falling wedge pattern, and that should lead us back over 50K. And then the main level we have to break once we're over 50K is 52,000. 52,000 could potentially lead us back to that 55 plus range, which could potentially take us back to to test to retest is $60,000 level that we've had so much trouble with to potentially then hit 65,000. So you see a lot of things need to happen in the right order in the right way for us to get back there. But you can't think of just the end goal. You just got to take it one day at a time, one step at a time, you know, so that you won't get overwhelmed. So that's pretty much it guys. Everything else in the market right now is just following Bitcoin. So we're only looking into Bitcoin today. If you guys have enjoyed this video, guys, make sure to smash that like button, guys. It helps us a ton with the YouTube algorithm and for us to continue being able to grow our channel. If you guys are new to the channel, make sure to subscribe, hit that subscribe button, also turn on the notification bell so you're notified when we either drop new videos or go live. If you guys have any questions about any of this, drop it in the comments. I'll be happy to answer those questions for you guys. Alrighty, guys, so let's see what we get for the rest of the day today. And I'll be with you guys with another video tomorrow. As always, guys, peace and love.