 Guys, it's over. China has banned Bitcoin sending prices tumbling down. Oh wait. No, this is September 2017 Guys, it's over. China has tightened its claws on Bitcoin and oh Wait a minute. We're still September this is still 2017 Guys, it is over. China's top Bitcoin exchanges have suspended trading. Oh wait We're still in 2017 how many times has China banned Bitcoin? Alright effort. Let's just look at the charts Guys, it is over. China has banned Bitcoin You can see all the red as Bitcoin has dropped to the low 3000s Wait a minute. This is still September 2017 Guys, look how far we have come Sent that first ban the first ban in 2017 of Bitcoin in China. We're at $3,000 now. We're at $42,000 China has yet again Reiterated their ban from 2017 does a crypto market care at this point So let's not waste any more time and jump into today's video Hey, what's up J 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 the community with the knowledge and Resources to get you up to that next level. So if you guys are new here don't forget to subscribe to the channel and turn on the notifications and Also smash that like button to everyone that's watching this video right now today We're talking about the new fud from China banning Bitcoin again We will do an analysis on the current market structure for Bitcoin in ethereum And then we will jump into some trade setups for the weekend. So let's dive right in So the People's Bank of China today announced its ban on making Bitcoin illegal. Does this sound familiar? Well, it's because they've banned Bitcoin so many times by now including back in September of 2017 which sent Bitcoin's price tumbling down to back to the $3,000 area before three months later taking off to brand that the Before three months later taking off to the all-time highs of that bull run to that $20,000 area now here. We are yet again. It is September We are in the middle of a bull run and China has yet again banned Bitcoin Does this ban mean that next real big leg up is coming possibly the finale of this current bull run Possibly a hundred thousand dollars only time will tell so this ban is in fact Simply a reiteration of the People's Bank of China's existing Restrictions in place for the past four years last time this happened in 2017 with the original banned Bitcoin's prices fell only to recover to its original levels within weeks and Set a new all-time high of $20,000 less than three months later Also, don't forget all the times they have Reiterated this in the last four years history doesn't repeat itself, but it sure does rhyme So now that we've covered that let's go ahead and jump into the analysis for today So as you guys can see here on Monday's video We spoke about that $42,000 area and you will see that on Tuesday We actually breached that area for the first time since back in July August before we broke out of it and we you know We tested that $40,000 area, which is another support there and we had a nice bounce back to a high of almost $45,000 overnight. So you'll see that today the high is actually in at 45,000 119 before of course we got the fud from China and Set sent the crypto markets down to a low of 40,000 once again testing that level and once again rising out of the fire rising out of the ashes like a phoenix and Right back above that $42,000 zone. So we've been talking about this $42,000 level And you guys can see why it's so important. It is a very very strong level there We have a lot of support. So as long as this holds up This should be the bottom of this current trading range So this is the perfect spot to enter those long trades for swing trades To try to ride this up back to the top, which is around that $50,000 area Now this is not guaranteed that we're going to go to $50,000 because as you guys can see the way that the chart is currently set up on the daily here We have the high then we have the low then we have a lower high a Lower low. So if we need to break this high right here to continue up and to break out of this current Descending channel here descending resistance here that we've created with these lower highs and lower lows and so that we don't place Another lower low because if we can't break above this and we set up Another lower high that means that we're going to set up another lower low and that next lower low could possibly be around That $35,000 range. So this weekend. We are watching this level right here, which is right around that $45,000 area We need to break above it so that we can break this here What's currently happening right now in on the chart break the lower highs and lower lows and we need an end Of course, we need to break above this level here, which is that $48,000 area So that's another very important level that we must break in order to break this right here We don't want to stay in within this channel because then that just means that we're gonna continue kind of doing like this and Retesting this bottom channel right here, which we don't we really don't want to retest if we retest that then there's possibilities And there's some case scenarios where Bitcoin drops to lower than 35 down to 30 to $28,000 range once again, and it ends up testing the lows that we set back here So it is very very important right now guys this weekend and for the next week that we do break above this Descending channel and set up a higher highs over here Now, of course the next big thing that a lot of people have been speaking about in crypto We've been getting a bunch of questions about this is this possible head and shoulders Pattern that we have here in the market currently with the neckline being kind of around Let's say right around here. That's around that $44,000 area so if this head and shoulders pattern were was to play out the Breakdown from this pattern would be around It would be around look at this guys It would be around a 20% drop and it goes perfectly with this $35,000 Fibonacci level here So that is a case scenario here if we basically if we fall below $40,000 $42,000 and $40,000 again, that is the bearish case scenario where we would drop about 20% down to around this $35,000 area and the issue with this $35,000 area is that it although it is a support It's not a very strong support So if we hit 35 there is a case for dropping back down to 30 and 28 Which is why we don't want to see that play out But we have to be aware of what's currently in the market so that we know What to expect going forward for the rest of this month now that could also be bullish And that could be its final flush basically of all the weekends where we drop back down 35 We test it one last time before then Taking off and you know setting new all-time highs in within basically the next three months as you guys know October November and December are usually very very historically are very good months for Bitcoin And we already know as we've you know covered it many times over September Is overall a bearish month? We spoke about this September being a bearish month last month We were preparing for this and we're trying to get everybody in that mind state of the pullback coming in September And it's exactly what we have gotten so far in September as you guys can see if you pull up the monthly chart here On the month Bitcoin is currently down about 10% So for the rest of this week in here, we're just going to be watching this level We need 42 to hold we need 40 to hold here and we need to see the price action move up So, you know over the weekends is usually not a lot of volume So there's not there probably won't be too much price action But going into Sunday when futures market, you know is live again China wakes up Even though China's banned Bitcoin many many times That's when we can expect some more volume coming into the market here in the crypto space and possibly seen some Movements we we just need this support here to hold if not then that scenario is $35,000 would be that the next level and possibly the bottom of this next move down Any theorem pretty much the same thing guys as you guys already know we say it all the time It pretty much follows Bitcoin, you know Move for move as you can see today a theorems down about 8% while Bitcoin is down about five and a half percent So pretty much the same thing guys a theorem is just a little bit more volatile and more exaggerated So whatever Bitcoin does a theorem exaggerates in the same directions Most of the time not old and that goes the same basically for the majority of outcoins as well Of course, there's always exceptions to that rule So the main level here for a theorem is of course $3,000 if we drop below it that next support is around 2,800 and then below that is of course $2,500 is a major level here You guys can see that a theorems also getting that same Possible head and shoulders the neckline being around that $3,000 levels, which we're currently under that potentially gives us a Drop if we saw a drop in the market and we saw the head and shoulders play out pretty much gives us a drop of around 36% Estimated of course that means that we would probably retest the $2,000 area at that point before Bottoming out and potentially moving back up This is of course I'm talking about the scenario where the head and shoulders pattern plays out if you guys are wondering what a head and shoulders pattern is It is basically a reversal signal and you can see back here in April before the massive drop We had a head and shoulders pattern here You can see the head the left shoulder the right shoulder and then you can see the drop if you've got the top of the head down to the neckline, which was right around the $50,000 area and He moved it to the break of $50,000 which would be the neckline you would see that it gave us a target of a pullback down to around 36,000 and we ended up basically going down to that and staying in that range for a while for that drop So it was pretty much pretty accurate there with the drop now What we see going lower is just a continuation down once we got in that different pattern We were basically in a falling wedge after that which is again a falling wedge is another reversal pattern a trend reversal pattern Which then gave us the move back up which are currently in as of this moment and then now That's why we're bringing to you guys this head and shoulders pattern yet again here because it is a possibility That we have a drop similar to the last time that we got the head and shoulders pattern So our estimate if we see that drop if the pattern does play out You know is a retest of that $35,000 area for Bitcoin and possibly around $2,000 retest for Ethereum. So let's dive into some possible trade setups here So the main levels that we're watching here is 42,000 and 40,000 if those those levels hold here We like those areas to enter the market now on all long trades as of this current moment We're risking a very very minimal amount We're risking 1% or less because of the current market structure because of the current patterns We want to Risk as little as possible at this point now if you're a long-term Hodler if you're holding, you know for your long-term portfolio Then the way to hedge this drop is by shorting, you know if we fall below certain levels So you can use either $42,000 as an area to short or a break of $40,000 as an area to short now, of course There are many many fakeouts as you've seen over this past week So make sure to use stop losses So like that if it's a fake out and it bounces back you close out your position at a minimal loss So the long entries are 40 and 42,000 bounce back entries That means that we're entering not while it's dropping But when it bounces back if you would have done that at 40,000 You would have been able to write that all the way up to basically $45,000 if you did it at 42,000 again, you would have been able to write that up to $45,000 and if you shorted at 42,000 which is I believe it's a trade that we gave last week Break down entry below 42 you would have been able to write that all the way down to $39,000 so you can play the market in both ways Now the next breakout entry if we do get a bounce back is of course above 45,000 and the next short entry would be below 38,000 So if 42,000 seems too risky because it's a lot of you know Up and down there you could try 40,000 if that seems too risky you could try 38,000 It's all up to you any theorem pretty much the same thing We're watching that $3,000 area as a breakout entry We want to enter as that breaks above that $3,000 area and that next level would probably be around 2800 but we're not even going to play that you know the next level for us would be more like 2,500 and again, you know it there is an area that you can possibly short here But because we're already setting up short entries in Bitcoin We're not also going to set up short entries in Ethereum You know, we're fine just holding and just shorting hedging on the Bitcoin side just you know letting a theorem ride However, once we will consider shorting below $2,500 so if if the price were to reach that area if we do get a bounce back Of course 3,000 is the first level watching above that is going to be $3,200 as that next breakout entry that we're looking for There any theorem that's it for today guys. I hope you guys have had a great week I know that the markets been pretty much down all week, but that's okay guys There's always next week and remember September's is almost over We spoke about September being historically a down month or red month. It's almost over guys We're almost back into October November December, you know, that's when Bitcoin loves to run So of course it's up to you how you guys want to deal with these dips. I'm buying the dip You know you guys decide what you want to do. I'll see you guys on Monday's video Make sure to subscribe to the channel if you're new here and turn on the notifications Don't forget to like the video guys And if you have any questions about anything that we covered today drop it in the comments I'll see you guys on Monday as always peace and love You