 Hey everybody, welcome on back here to another video where we're going to continue the breakdown of Bitcoin, the charting, the technical analysis, and the volume aspect of it all. Once again, my name is Josh Levitan for anyone that's joining us new here at Sebertron University. I'm the senior instructor alongside Fausto Puglisi. And hey, if you're not subscribed yet to our YouTube channel, just do me a quick favor first before going any further here. If you're interested in crypto trading education, stock trading education, we ended up just doing our first crypto video formally at least back two weeks ago, back on January 22nd. So if you're interested in seeing more videos like this past one, this one right here, and any further is just make sure that you hit the like and subscribe buttons right here on this YouTube video. Our YouTube channel is youtube.com slash cyber trading you. But with that, let's hop right back into it, folks. I want to pick up right where we left off back from that last video on January 22nd. So back from the 22nd, we were watching Bitcoin continue to fall and actually break below a major critical support level at the time. You know, the two red lines right there where my cursor is roughly at 40,000 and just a little under 41, I think that's 40,750 there to be exact. You know, I drew those two lines there quickly just to show a critical support level that held back from late September before Bitcoin continued to push up and break a new all time high. And those same levels were formally resistance going back into the spring and early summer of last year too. So that was a key range to work with. Well, going back into the end of January, we ended up seeing Bitcoin completely break below that support level. And much like we teach with stock trading, you know, anytime any symbol ticker crypto Bitcoin stock, you name it, anytime we see a key support level get broken through. Initially, at least I'm expecting that support to turn into resistance. So that was the most broad aspect of charting that we started with. But alongside that though, the other talking point I addressed during that video back from the 22nd was simply that Bitcoin ended up recently breaking under the 500 EMA. The orange line here on my daily chart, some ads right there, the orange line right here on my daily chart ended up acting as a major support level alongside the horizontal lines at 40,000 and 40 plus. So once that ended up breaking, we ended up seeing Bitcoin shake around briefly, you know, at the time I actually had the same lineup here. This is simply the midway point between past major support, 40,000 and 40,750 there. And the next major support level back from June, July of last year at 29 this dashed red line was just simply the midway point. Now, I was not guaranteeing that this would ultimately be the bottom, the bounce level here. I was expecting a retracement shortly afterwards and to see this begin to test that major resistance now, that 40,000, that 40,750 and the 500 all together. Well, it took a little while. It took a couple weeks, right? And now here we are Friday, February 4th, right? So with that in mind, we're seeing Bitcoin make a pretty strong reaction today on the daily chart. So much so, it's basically right at that line, right at the top line here, 40,750. So this is where I'm expecting resistance to initially hold. Not only is it breaking above these lines here right now, but it's also breaking the trend line that we had back from midway of November of last year. This is essentially a three to four month trend that was holding. It ended up trying to break the trend line here going back into the end of last year back in late December. You can clearly see although it broke above the white trend line, it ended up holding under, that is, I believe, the 50 EMA on my daily chart right there in green. The 50 EMA it held basically underneath and then it continued its drop off, right? So here we are now just about a couple of months or about a month and a couple of weeks from that point. And we're seeing Bitcoin begin to re-break this steady downtrend line. I'm expecting technicals to prevail here and for this to initially hold as resistance. That means I'm expecting a pullback down, a consolidation at least from that point. Now from then, do we begin to see Bitcoin retrace back down, perhaps even pullback under the white trend line that we have here? Or does it continue to consolidate and then eventually retest resistance? Because should that happen? And if we happen to see some consolidation after this resistance being tested and if it gets tested again and again and again, the more times it's pitting at that resistance, eventually I'm going to expect momentum to lead this to make a big pop. Essentially a bottleneck effect to where we'll see this begin to really turn bullish again. Just look what happened going back into August and or late August of last year. We ended up seeing the beginnings of this breakout, some consolidation. It wasn't exactly to where it popped above these resistance levels and ran. It was about a week and a half, almost two week period to where once it re-broke right here, that's what led to the next leg up. It used it as support at that point and then it led to the run afterwards. So that could very well be the same pattern that's building over time here on Bitcoin. Alright, now one other thing I wanted to address because this is something I ended up noticing back maybe a couple days ago. Just for all of our students inside the Cyber Group Trading Room, every Monday, Wednesday, Friday when I host our afternoon meetings there, I do a bit of a Bitcoin analysis there. I'm going to stop doing that at least for those meetings and I'll just do more of these specific videos going forward just so you folks know. But one thing that I noted at least over the last couple of days and this actually plays into the resistance that was being built. But I'm going to place a couple of lines here and these are actually going to be points of interest based off of the 50 and 200 EMA lines crossing each other. Essentially a Golden Cross and a Death Cross. We have a couple of them to work with here so I want to plot those in particular. I mean they're pretty much right at the same levels I drew. So the green lines that I just drew represented points where the 50 and the 200 EMAs ended up crossing each other. This here is essentially a Golden Cross where the 50 ran over the 200 EMA. That's a very bullish sequence but otherwise that point right here could be used as a technical level and it did. But otherwise here this is where we saw the 50 break under the 200. That's what's called a Death Cross. So that in comparison to a Golden Cross is more of a bearish sentiment bearish signal. It ended up breaking down from that point but eventually held the 500 and then continued in the bull market at that point. But either way it's to say both of those points the Golden Cross and Death Cross easily become new levels of support or resistance to work off of. But it's just that they're so close to where I already had the lines it just kind of goes hand in hand with each other. Actually so much so that you know the Golden Cross that we had back from the end of last year. This actually held extremely well as a clean resistance across the last week, week and a half. I was realizing that this wasn't exactly making the push up to 40,000, 41,000 yet. I was wondering why and there could be a slew of different reasons. But I found that pretty interesting pretty timely to where once we ended up seeing right here. The 50 EMA in green break through the yellow 100 EMA on my daily chart. That's a Golden Cross so from that point that actually created a bit of resistance in its own right. And now with this beginning to pop we'll see what comes of this. I'm still expecting like I had said originally for 40,000 you know maybe we'll up it to 41,000 40, 41,000 just that area here. I still expect this to be a resistance in the short term. Now the question again that we're going to have to find out over time you know going into next week the week after. Is Bitcoin going to begin to needle these red lines again as resistance much like it did back in you know late July early August here again. This is exactly what you would want to see happen across the next two to four weeks if anything with Bitcoin. Before we finish up folks I just want to go over trading light. This is essentially a heat map that we show every now and then to show the larger orders that are visibly out there across some of the bigger exchanges, whether it be Coinbase, whether it be FTX or any of the other major ones that you work with Binance etc. So here I actually have Coinbase and then we'll show the FTX futures the perpetuals at least for Bitcoin. So with that I want to show just a quick pattern because again much like a stock or any ticker that you would just read a chart off of it's to say that support becomes resistance. We had major support break at $40,000 we had about four 300 to 400 Bitcoins here from the Coinbase exchange. This was going back into early January. So once that liquidity ended up getting broken through well it took a bit but once it re-broke it led to a big drop. Support turning into resistance that's what I'm expecting at first at least so that plays further into my prediction as far as this acting as resistance and for this to at least come back down to see some consolidation and then we'll react from that point. But something else caught my eye and this was more shown on the FTX perpetuals here. So pretty interesting. This is just back in late November but we had a stack of volume on the Bit right over 50,000 just about 50,000 to 50,000 flat 50,200 just and keeps going just a nice stack of visible icebergs on the Bit here for Bitcoin. Well that liquidity didn't get broken through it actually got pulled it got removed from the book. So once we ended up seeing the liquidity get pulled well it took a while but it we ended up seeing a big crash afterwards. The talking point though is this and it's not perfect but for a pretty good extent this year acted as resistance 50,000, 50,250 right around here granted a couple of pops you know a little bit of a false break here but once it re-broke under it and held under it well it led to the next leg down right? Well at least with 40,000 we had volume on the Bit that was there that got filled from Coinbase. Pretty interesting that this liquidity from the FTX perpetual side this is like futures so a lot of people trading on leverage some of the bigger traders out there are trading on FTX and they're trading futures like this. So you're seeing this liquidity not get broken through it's actually getting pulled from the book. They were anticipating for this to at least get broken through here over time and certainly for it to begin to break lower. Well it certainly did now I would anticipate again for that 40,000 area 39,950 to act as a big top to act as resistance. So as we zoom in here we know what happens we saw already what happens here to a great degree you know right around 39 flat held as resistance for a while you could say that golden cross price that we you know identified from the Bitcoin chart here acted as a pretty strong resistance here right? On top of that it was the liquidity that was pulled from the book from FTX right around 39,9 right around 40,000 here. So that's a big talking point we'll see what comes of this 40,000 area 40,000 40,750 again the two red lines that I drew on this basic chart you know that's primarily what I'm following as the next local top for Bitcoin granted one week from today when I do this next video likely if we happen to see Bitcoin continue to pop and explode hey that's all the more better for me we'll try and improvise from that point perhaps and anticipate for this to now turn into support should that be the case. Alright folks but aside from that like I said we're going to try and do more of these videos you know going forward if not every week then you know why weekly otherwise but hey if you're interested in learning more with crypto crypto trading education just make sure to hit the like and subscribe buttons right on our YouTube channel once again that's youtube.com slash CybertradingU and again if you wanted to learn more about Cybertrading University in general feel more than free to go right down to the link on the banner below this video here that you could see CybertradingUniversity.com and you could learn more about what we offer.