Bitcoin Sell-Off Continues BELOW $26,000.. What’s Next?

Bitcoin continues to break down lower Today plunging into the 25 000 price range and while we've seen a Huge momentum shift with this last crash Yes Bitcoin is broken below its 200-day Moving average we know this yes Bitcoin Has broken below its 200 week moving Average we know this too but also BTC Has weakly closed below three key bull Market moving averages losing all of Them as support so also the 21 week EMA And the 50-week EMA and what was once Support could then act as resistance if At any point BTC rebounds it's possible That these moving averages could act as Resistance to reject price so with the Fear the market is feeling today let's Talk about what's next for Bitcoin Bitcoin looks the most oversold since The covet crash key indicator suggests So we're looking at bitcoin's 14-day RSI Relative strength index which has not Flashed around these oversold levels Since the pandemic Black Swan bitcoin's 14-day RSI has dropped well below 30 Indicating oversold conditions a reading Below 30 implies that the price has Dropped too quickly relative to its Recent average as opposed to a reading Above 70 indicates overbought conditions Now just because something is flashing So oversold does that mean you should Buy today well in March 2020 in Retrospect the answer was yes yet keep

In mind one of the mistakes that most Rookie Traders make is to consider Oversold and overbought readings as Advanced hints of an impending bullish Or bearish reversal but that's not Always the case if anything the latest Below 30 or oversold reading on the RSI Is a sign of strengthening bearish Momentum and as the old saying goes Indicators can stay oversold longer than Dip buyer virus can stay solvent so Again we need more information and just Looking at the data from coinbase Provided by crypto Quant somebody's Buying the BTC price premium on coinbase Is up three percent so it's either Number one a whale entity is dumping BTC On binance or other exchanges or two Coinbase whales are buying the dip we Can also look at realized price for Bitcoin which is different than actual Price for Bitcoin and get a better Understanding of where we are today what Is realized price Bitcoin realized price Is the value of all Bitcoins at the Price they were last transacted on chain Divided by the number of Bitcoins in Circulation so many people say that this Is a more accurate way to Value the Network because unlike the current Market price which tells us the price of Bitcoin right now realized price tells Us the average purchase price of all Bitcoins in circulation so the price

That those big Bitcoins were last moved Today while the actual price is around 26 High 25 000 the realized price is Around twenty thousand what's that tell Us well just looking historically it's Actually rare that the actual price dips Below the realized price for any Extended amount of time we were below The realized price for months about a Year ago let's keep tabs on this in These next few months because of looking On chain we see that whales are buying a Mysterious wallet has just become the Third largest holder of Bitcoin in just Over three months accruing over one Hundred and eighteen thousand BTC worth Around 3.08 billion some entity went From having zero Bitcoin to being the Third largest holder of Bitcoin is it a Small country is it BlackRock is it the Next entity like BlackRock that we Haven't even heard of yet showing us That somebody is being greedy while the Rest of the market is fearful and the This affects you coinbase has just Acquired a stake and stablecoin operator Circle behind usdc as usdc adds six new Blockchains so in layman's terms Coinbase is acquiring a minority stake In circle their Center Consortium which Governed the usdc stablecoin is being Dissolved and circle is bringing the Stable coin fully in-house meaning Circle Now controls everything and now

Coinbase has a minority stake in that Everything and also six new blockchains Will integrate with usdc taking the Total to 15 though not identified polka Dot near optimism and Cosmos are chains Circle said it had planned to add in 2023. yeah this is interesting I mean Obviously the addition of additional Blockchains stands out right having Native usdc on various layer 1 networks Is pretty catalytic for a lot of these Networks right you want to have that Stable unit of account that you can use To zap around money natively on these Chains rather than having to rely on a Bunch of sort of like you know duct tape Bridge situations so um that I think is Super notable but I think also like There's clearly some interesting I think Behind the scenes here as to why uh Coinbase wanted to you know get in on This a bit more actively right I think If you looked at the low to no interest Rate environment that a lot of stuff Took place in You know in the last three four years Suddenly these reserves are probably Thrown off a good chunk of change Sitting in some bank account somewhere Um you know generating interest Generating returns right so I could Imagine why coinbase would want to be Closer to that because it might Represent a decent uh business line

Right Circle these are dollar backed uh Stable coins they're sitting in reserve Somewhere they're tokenized and then They're you know zoomed around the Internet and they want to cash them out You get that dollar back right so um I Think the business sort of Economics of Being a stablecoin issuer have certainly Changed given the high interest rates uh That we see we're also seeing L2 Blockchain base explode in a huge way Friend dot Tech hype sees bass surpass Rival L2 blockchains an average Transactions per second and the average Daily TPS on base has risen by 156 Percent in the last week so base is an Ethereum L2 that's backed by coinbase And it has officially beat not only Ethereum but rival L2 blockchain's Arbitrum and optimism and as we've Shared with you before a big reason that Bass is taken off a big reason that Investors are flocking to base is to Gain access to friend.tech which is a Social Market that allows users to buy And sell shares in public figures now Renamed the keys in public figures Friend.tech has more than 100 000 users Just days after its release and whether Or not friend.tech is just a flash in The pan if it's going to go away or Whether it's here to stay nobody really Knows base the underlying L2 is reaping The benefits the total value locked on

Base has risen to 188 million with a Decentralized exchange of Base swap like Uniswap but base swap and cross Chain Bridge Stargate scooping up the majority Of traffic also Sam bankman freed today Was in court again SBF pleads not guilty To latest indictment so specifically he Pleaded not guilty again to fraud and Money laundering charges and the FTX Founder was arraigned in the southern District of New York courthouse after a New indictment accused him of using Customer funds for everything from Buying personal real estate to political Donations the charges were from the Original indictment filed last December And the purpose of this and why SBF has To plead not guilty again or show up to Court again is because the prosecutor is Trying to fold a campaign finance charge Into other allegations after prosecutors Said they couldn't explicitly bring the Charge due to treaty obligations with The Bahamas meaning a technicality with The Bahamian government made it so New York couldn't charge SPF for donating so Much two political figures campaign Financing fraud prosecutors are now just Folding that campaign finance charge Into other allegations so they will be Able to go after SPF for this and Finally to answer the question buy Bitcoin now or wait Truth is I don't know what Bitcoin is

Going to do tomorrow and neither do you But what my plan has always been and What smart money has always done dollar Cost average in on the way down meaning Buy as we go lower Buy on the way down Just like dollar cost average out on the Way up take profits on the way up Nobody's gonna catch the exact bottom or Top as I get more info I'll keep you Updated hit the like button and I'll see You tomorrow