Transcription
[bell] Hey folks, welcome to verified investing.com. My name is Gareth Soloway, chief market strategist here. Now in today's video, I want to deep dive into Bitcoin. What's the latest? Because we do have a potential breakdown in Bitcoin. Again, overall, I've been bullish over the last few months, but it is at risk of breaking a key technical level. We're also going to look at the altcoins, including ETH, XRP, and Salana, and we'll discover what is going on there. Let's dive right in here, folks, taking a look.
And this is the concern of mine right here. Right? So, if we look at this, we understand, right, the basics of technical analysis. You have a move like this, and then you go like this. And sure, short-term this is an uptrend, but it's inside of a bigger macro pattern. That means the result eventually is a move to the downside. All right? And that's exactly what we've been forming here. Right? Here's that same move down, right? And then here's the uptrend that we've been in. But the problem is now is that we are now testing this bottom area. We closed below a couple days ago. We did not confirm yesterday. That's a positive. That's good that we didn't confirm the breakdown. We closed back inside yesterday and we're trading right on the trend line today. So, this is huge, guys. This area right here.
Now, ultimately, the bigger pattern is the dominant pattern right now. Again, we have to see if we confirm below here, but if we do, then you're looking at a move down with a potential for a drop on Bitcoin. Get this, guys. All the way down anywhere between 74,000 and about 69,000. All right. So again, you can see why this level is this level. We can see very clearly here that it's this low pivot here which will act as support and then you have all of these levels in here, right? All of these right here all the way right through there. And so that really gives us a firm basis if we do break lower of where Bitcoin could go.
Now, is it possible that Bitcoin could start to gain traction and start to rally up? The answer is absolutely, especially considering it hasn't confirmed a breakdown yet. Notice how I'm finding this parallel. It's very, very simple. I take the absolute low here to the secondary lowest point there. And then we obviously have right here, and then we do it right to these highs. And that gives us that beautiful parallel that essentially I mean if you just call it what it is, it's a parallel channel, but it creates the bear flag, right? I mean, that's the classic bear flag formation. Okay.
So [snorts] how would the bulls take back over? Okay, the bulls would take back over if we did rally up, right? And we get up here and if we can break above the parallel that creates the bear flag, then you have a failure of the bear flag, right? The bear flag essentially fails at that point. And that's really the key here, folks, is that again, we're kind of borderline breaking down, but we haven't broken down yet. Hope is not lost for the bulls here. But you got to watch closely here, guys. I can't stress this enough. You must pay attention right here.
Now, the other thing to pay attention to is in the bigger scheme of things, is this putting in a bigger head and shoulder pattern, which again could be very, very bearish and it's something I will monitor very, very closely and keep an eye on as well. All right. So again, something I'm going to be watching very closely here, you know, how does this play out? But let's just say this is that overall, as bullish as I've been on Bitcoin over the last couple months as we've been grinding sideways to up this. If we confirm below this level, the bears have full control again. So just be aware of that.
All right, we're going to get into some other coins here. Let's look at ETH and see what ETH is up to here. ETH is also at a borderline trend line. Notice again, this trend line's a beauty. It comes from this low here to these lows all in here, right? All through here. That is your short-term key technical support. Now, again, just like we were just discussing, just like with uh Bitcoin, it's right on here. Closed below, closed back above. Now, it's below. Which way is it going to go? Is it going to close below? If it does, we need to watch and see if it confirms. Does it confirm a breakdown? If that happens, watch out below. You're likely headed down to this major level here. And let me just clean up the chart a little bit. By the way, this gives you if you did rally back, your upside resistance, but right now, we don't have to worry about that. But essentially, you can see why this next level would be support. You have this pivot high and then it broke out and then look at how it respected that level. That tells me that we should respect the level here at 2100 if it gets down there. All right.
On the other side of the coin, let's just say ETH starts to rally up. Then you saw that trend line before. Essentially, all we do is just connect these points here. You have low pivot to right here and these lows and then that high. And that would give us our upside resistance, which by the way would also coincide with this area right in here. All right.
Let's jump into XRP. XRP has been all over the map. We had this beautiful short-term breakout on XRP here, right? You can see all of the hits along this level, hit, hit, hit, hit, and then breaks out, pops, and look at the retrace. Now, at this point, the only thing that matters, honestly, ignore that. Now, all that matters is this level here. And it's actually a zone. Let's be fair. Let's put in a zone because you have to respect the zone. It's a little bit of a level here. And honestly, it needs to go up a little to touch these lows right there and right there, then right there. And then again, we had our lowest point here and this low here. So that's your zone of support. As long as that support holds, bulls can buy according to technical analysis. But if this level gives way, then you've got some trouble, right? So again, in all fairness, XRP is holding up. It is right now, we'll have to watch and see what ends up happening there. Does it start to break to the upside? All right.
And again, just keeping an eye on this. This is your new resistance point. So, if we break up, look at the beautiful trend line here, uh, right around 220, $2.20. If we do rally, that's going to be first major resistance. So, now we have on XRP resistance is 220 that it's going to if it hits that, then it's got to we got to see if it breaks through or not. And then on the downside, this zone anywhere between really 177 and 161. This zone is I mean, in this, let me just stress this to the bulls out there, you got to hold the line here because if this breaks through, it's going to be nasty. And that's I mean, really below there, where's your next support? I mean, maybe a little in here somewhere, but it's not really anything significant till you get down to like sub a dollar on this, okay? So we'll continue to monitor there and see where it goes.
All right, and again, I will be monitoring with next. Let's move on to Salana, guys. What is going on on Salana here? Let's take a quick look. Salana was starting to perk up. It was starting to look good and then it just got pounded right back down. So, we're going to have to monitor this. I will show you my levels here. So, there is a key level of technical support here on the charts. Let's bring this trend line in right there. Notice connecting low to low right here. That is your key level to watch right there, folks. So again, we can see it very clearly, pivot low before this big move up, and then it goes up and then it comes down, hits, and goes up again. So if we come down in that level, that will be the spot.
Now, in regards to Salana, it's not the only zone level that I'm watching. So in addition to that, just below here, there's this secondary level from this pivot low. Right? So again, if Salana does come down, and obviously we have to break the low here first. But if it does flush, let's just say we start to get a flush, Bitcoin breaks down, ETH breaks down, this now becomes a major accumulation zone for me. Now, listen, I wouldn't go all in there because there's always a chance we could go even lower down to 77 or so. But this would be definitely that good port part to start accumulating nicely. Okay. All right. So, we'll go from there and see how things go.
But, as always, folks, um, yeah, this is great. This is this is what we want to see. And listen, you guys know me. I don't really care about the bulls, the bears, the motion. For me, it's all about charts. And that's how I'm able to really solidify. Not that I'll ever be 100% right because I've certainly been wrong many times in my career. But, at least I'm basing my decisions off probability. And probability at least puts the odds in my favor, right? It's not because someone on X said this or I heard this out there amongst my friends or, you know, I have a big position so I'm really willing it to go in one direction. It's what are the charts telling us, aka the probabilities, and that's to me everything. All right. So again, that's what I wanted to get to you guys. As always, here to give you my unbiased, just it is what it is type analysis. And I think that's what we are here at verified investing. It's no BS, just charts. You guys have a good one. I'll talk to you soon. Take care.