 So, this morning I woke up and of course looked at my phone and I saw that Bitcoin was down. But then I realized I've been dollar cost averaging for years. So before going right back to sleep, I bought the dip and then took another nap. So yes guys, the market is down today. And no, not just the crypto market, the entire market. The crypto was down, the stock market down, Hong Kong's stock market was down, everything is red today. But why? So apparently it is related to the Chinese property development giant China Evergrande or Evergrande, I don't know how to pronounce her name, something like that. So how does this affect Bitcoin and how will it affect Bitcoin going forward? That's what we're going to cover in today's video along with Bitcoin market analysis and some trade setups that we will be watching for the rest of this week. Hey, 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, the beautiful Bitcoin community with the knowledge and resources to take you guys up to that next level. So if you guys are new here, make sure to subscribe to the channel and turn on the notifications. If you've been here before, don't forget to like this video. Also if you have any questions, of course, drop it in the comments. Let's jump into today's video. So let's start off with an overlook of what the market has looked like today in the last 24 hours. You guys can see that the total market cap is down by almost 8% over the last 24 hours. So yes, it is a red day overall in the market. You see Bitcoin is down around 7.5% over the last 24 hours. Theorem's down around 8%, Cardano down about 9%, Binance down about 11, XRP down about 12. You see that everything is down a little bit more. The further you go away from Bitcoin for the moment. As you guys know, outcoins are always a little bit more volatile than Bitcoin itself. So that's why you will see those down more than Bitcoin when Bitcoin goes down and you will see them up more than Bitcoin when Bitcoin goes up. So what has caused this breakdown today in crypto? So and it all goes to the same thing that's affecting the rest of the markets, which is this news here. So who in the world is the China ever grand group? So do you guys remember the Lehman Brothers from 2008? They're basically China's version of the Lehman Brothers. Now quick history lesson on who the Lehman Brothers are. If you look on Wikipedia, you see that the bankruptcy of the Lehman Brothers on September 15th, 2008 was the climax of the subprime mortgage crisis. So this is the largest bankruptcy filing in US history involving more than $600 billion in assets. This bankruptcy triggered a 4.5% one day drop in the Dow Jones industrial average. And of course, this prompted a financial panic in crisis. So now that we know who the Lehman Brothers are and what happened when they went bankrupt in 2008, let's go back to the China ever grand group. So this company has over $300 billion in debt, placing the company as the world's most indebted property developer. The company has already warned on multiple occasions that it could default on its debt. So although this is not directly related to Bitcoin itself, if a company of this magnitude defaults, it's going to affect the entirety of the financial system, not just the crypto markets, not just the stock markets, not just China's Hong Kong's stock market is going to affect trickle down to everybody, including the crypto markets. So there have been a lot of rumors about this affecting Tether directly. You know, Tether is always in all sorts of rumors anytime there's any type of fight, of course. And Tether put out a statement saying that it does not hold any commercial paper or other debt or securities issued by ever grand and has never done so. So this only seems to be one of the first cracks happening as other Chinese companies, other Chinese home builders are also drowning in the same issues. So news like this always happens occasionally. There's no way to ever know when it's going to happen or how it's going to directly affect the markets. This is why we always tell you guys to dollar cost average. Dollar cost averaging is the most effective way to invest for long term in Bitcoin. If you're a long term investor, then this shouldn't really matter too much to you or affect you too much as you're not worried about the day to day, week to week, even a month to month. We already spoke about September being a bearish month historically for the markets. So I'm not really too worried about this, even though if they did default and went bankrupt as you guys saw what happened with Lehman Brothers back in 2008, of course it could have a significant impact in the market and everything could drop really. I mean, there's no way to get away from it unless you're not in anything, but it would affect of course all the markets, not only crypto markets, but the stock market as well. But at the end of the day, remember that Bitcoin, this is kind of the whole reason why Bitcoin was created to solve issues like this. So even though this might affect Bitcoin in a negative way, I believe that long term this should shed more light on Bitcoin on why the world needs Bitcoin. It was no accident that Satoshi Nakamoto created Bitcoin in 2008, right when all of this was happening with the Lehman Brothers in the financial crisis. So make sure to keep thinking about that as this story continues to develop. So let's go ahead and take a look here at what's going on in the markets today. As you guys can see here, we're currently at $43,000, we're right around that area. We basically, this candle opened up at $47,268, and from there it's dropped down pretty much $4,000 on the day. Currently down over 8%, we had a low of $42,400. So as we stated before, $42,000 is a very strong support here. As long as we stay above $42,000, we should be fine. You can see here that once we broke out above $42,000 finally, right here was the breakout. Any time we've dropped it back down, you can see that $42,000 has pushed the price right back up. And today's low here, today's actually the lowest we've been sent. We broke out on the 6th of August here above $42,000. And you can see before, after we dropped below $42,000, is when we had a huge drop and when we got close to $42,000 again, we would get rejected. So $42,000 is a very, very strong support and resistant zone. There's a lot of activity there. You can see that it was a previous all-time high. It's been support on multiple occasions and it will continue to play that role here for now. So that's why $42,000 is such an important level for us. I know some people are talking about Bitcoin closing above $44,000, but I believe that $40,000 and $42,000 are much more important levels than $44,000. Yes, of course it's great for us to close above $44,000, but I still believe that closing above $40,000, even if we close below $44,000, as long as we hold here at $42,000 and we close above it, we're fine. We can still see $50,000 and above at some point soon. But if we break below $42,000, I think that we could see something like this where you can see just how big this red candle was here and it dropped us all the way down to the lows of $28,000. So I think if we were to break below $42,000, we could potentially see the levels of $35,000, $30,000, $28,000 again, which is why it's very important to not break below those levels. But like I said, there is a lot here at this level. So as long as we hold here at $42,000, we should be fine, guys. We have a lot of support here at these levels, so we just need to hold here because if we break below, that's when there's basically a huge drop-off where we could see those levels that I just previously mentioned. So for me personally, this is another opportunity to buy the dip here and we could potentially see the prices go back up to that $48,000 area. It might take either this whole week, might not see that till next week. I'm expecting probably a choppy week going forward for the rest of this week just because it's going to be fear and uncertainty and doubt in the markets over the rest of this week. Unless we get some really bullish news, I think that we'll probably just chop around in this area. Again, as long as we stay above $42,000, I have no issues with it and I think we're still looking good overall. So of course, the support here for Bitcoin currently is going to be $42,000. And it's going to be $40,000 and beyond that is when we get into riskier numbers where it could be like $38,000 and then probably $35,000. So that's why we need this level to hold here so that we can remain bullish. This is the bottom of this current trading range that we're in and the top of this trading range is of course $50,000. So that'll be the top of our range as long as we stay above $42,000. In Ethereum, you guys already know that Ethereum is going to follow Bitcoin and it's usually an exaggerated move of whatever Bitcoin is doing. So Bitcoin is down 8% today. So Ethereum is down 9% today. So if Bitcoin moves up, Ethereum is going to move back up with it and the percentages, the gain will be a little bit more than Bitcoin. Just like the drops are always a little bit more of Bitcoin. So at $3,000, remember we spoke about it on Friday's video. I told you guys $3,000 is where I am looking to buy Ethereum. You can see here how many times it's tested $3,000 and how many times it's held up. $3,000 is a strong support here guys. I am definitely buying here and entering some bounce back trades here. I'm still not going to be risking a lot here but I'm definitely using that $3,000 support as an entry here with $3,500 being the top of this current trading range that we're in. So hopefully you guys are enjoying this video. So far next we're going to talk about some trade setups that we're going to be watching for the rest of this week, including one short trade setup in case we go below these levels. We will be opening some short trade setups here. So let's go ahead and jump into it. Before we do make sure to smash that like button on the video guys. Make sure to subscribe to the channel if you haven't done so yet. We're almost at 11,000 subscribers guys. Thank you for you guys who have already subscribed. Also if you have any questions about anything that we're talking about today, drop it in the comments. Let's jump into these trade setups. So in Bitcoin the first thing that we're looking at is $45,000. Now what are we going to do with $45,000? That is going to be a breakout entry level for us. So you guys can see that every time it's bounced above $45,000 been able to go up here when we drop below it. We bounced above $45,000, went all the way up to $48,000 up here. And we're expecting if we get a bounce here we should be able to break above $45,000 and hit that $48,000 range again. So that's currently the main breakout range and breakout level that we're going to play. Now for a bounce entry here $42,000 is going to be the bounce entry we're looking at. But you have to be careful because if we'd fall below $42,000 we could see something like this where it just dropped really, really hard. So that's why I'm if we drop below it and we bounce back up on that's when I'm taking that trade. I'm not taking the trade if we're consistently dropping down. So that leads us to our short position in the event that we break below $42,000. So if we in the event we break below $42,000 we will be opening short positions like the same way we enter breakouts. We're going to enter a break down here below $42,000 with our stops above $42,000. And if we break down, for example, like this where the price just drops below and then it bounces back up, we will be closing out our short entry and we and opening up a long entry to play the break the bounce back entry that we just mentioned before. So if you have any questions on how to execute this trade, drop it in the comments and we will be more than happy to clear up any confusion that you might have with this. The next short entry would be below $40,000. So those are the two short entries that we will have set up here in Bitcoin this week. We gave you guys the long entries, which is above $42,000 on a bounce back and above $45,000. In Ethereum, we're not going to play the short entry just because it is more likely to have many fake outs, you know. So we don't want to be in two different short positions and it's a fake out and get stopped out of two different shorts. So here we're only playing that $3,000 level as a bounce back entry. And then above that, we're going to play $3,200 as a breakout entry here. So we're entering trades above $32,000. You can see that last time it broke back above $32,000 and went all the way up as high as $35,000, $3600 there. So we're kind of eyeing that same move there in this chop. And then of course above $3,500 will be that next trade. You can see that last time we got above $3,500, we went up almost as high as $3,700. So that's what we will be watching for the remainder of this week if we get any rallies back to the upside. That is it for us today, guys. I hope you guys have enjoyed this video. If you have any questions about anything that we covered today, make sure to drop it in the comments. We're always happy to answer and get back to you if of course we have the answers to the questions that you're asking. On days like today, guys, don't get too much into the daily movement of the prices. Just kind of relax. Don't look at prices. You're a long-term holder. Don't look at the prices. Don't look at your portfolios for the rest of the day, maybe even the rest of the week, right? Just go ahead and enjoy your life, guys. Enjoy your time with your family, your loved ones, your friends, and go about your days. And if you do want to be interacting with your portfolio, what you should be doing is buying the dip and adding more to it. Don't sell during panics, guys. You buy during panics. You sell during euphoria. So thank you guys so much for watching the video. Make sure to subscribe to the channel if you haven't done so yet. And don't forget to like the video, guys. It costs nothing to like our videos and it takes us a bunch of effort, so it is very well appreciated. It helps us out a ton with YouTube and its, of course, algorithm. Thank you guys for tuning in today. I will see you guys on the next one. As always, peace and love.