$BTC #Bitcoin Bulls in command? Quick market update 2/8/22
hey all right all right all right all right it is big chads it's tuesday it's the eighth day of february 2022. if you want to go ahead and give me a shout out and just confirm for me you can hear me i definitely want to say thank you i do appreciate that um let me know where you're watching from this is a worldwide thing and so let me know what you're doing uh where you are in the world we're all doing this together we're all part part of crypto so i appreciate that sound is good we hear your bra yes sir so folks like what's up with the dancing sheds why do you dance um like you know we tend to take ourselves too seriously i know i take myself too seriously um but doing this show it's fun to dance first it's fun to set the tone learning's hard i'm gonna throw some stuff at you some of it's complicated some of it's not i want to kind of get you in that right mode get you in that right mood and more than anything we're just friends we're all just doing this together so set the mood right and have some fun that's why i dance um i'll keep this brief it's not gonna be a long update there are a few things i want to say but i'm still saving a lot of my thoughts for tomorrow night uh bitcoin live just as a reminder let's get this going here you can find me on twitter of course big chads uh youtube so you may have heard of my book of course trading wisdom 50 lessons every trader should know i have a new book coming out later this year in draft form go to the playlist like if you can't afford the book or sometimes like even your country you like even if you want to buy the book you literally can't buy the book uh go to the playlist i have 11 of the 50 uh lessons for free eventually the whole book will be up there i do one every three or four weeks check that out if you're brand new to trading start with tutorials you know it's hard to know what to trust you can trust this technical analysis based on classical charting japanese candlesticks do yourself a favor watch the tutorials the book of course is on amazon i have four formats audiobook hardcover paperback and kindle plus i mentioned the free version as well on twitter um and if you're serious about learning check out bitcoin live i'm a founding analyst i've been doing two full market updates a week for years and i haven't missed one you can count on me i take it very seriously and uh what's nice is um my analysis is held up it's aged really well and i want to i'll talk i have a litecoin trade i want to go over with you uh in a minute but it's fun to go back it's nice to go back and to know like you know you said you said things that made sense and that kind of played out and that's because they're based on principles that go back 100 years or more with japanese candlesticks hundreds of years it's based on the psychology of the market it's not based on one coin or one project it's fundamentals right and it's trend analysis it's momentum so what are we doing here with bitcoin and so what am i showing you uh let's go it's a little bit easier we'll start out with this one's a little bit easier so what are we looking at so you know you know i nail obviously i nailed the top if you don't know that it's on twitter i i forecasted it ahead of time i told you the day of the top and i had like 30 tweets around that at the time so i nailed the top and it was it was based on clues that were there bottoms this bottom's a lot more complicated you know i don't know if this is the bottom yet but we do see a sign of trend weakening on the bearers part like bears have lost a little bit of momentum here and i'll explain that just checking out shout out to big chads uh pittsburgh all right what's up pittsburgh uh play some bee gees paintball for life i don't have bg's watching from nigeria that's wonderful poland indiana kuwait i saw kuwait in the house bangkok panama new york ukraine listen folks we're all kind we're all basically the same everything in society puts us against each other we're all basically the same with some some variations which make humanity beautiful but we really have so much in common bitcoin i caught i saw the top and since then it's in a correction if we kind of just step back we kind of set the table this is a correction in a larger trend we can switch from daily to weekly when in doubt zoom out we can just see this is a correction in a larger trend so you have the concept of dow theory turn of 20th century primary secondary trend and the question is when how long the secondary trend goes does that become the new primary and with bitcoin the primary trend has always been bullish it's been bull right it's a long term uh bull trend you know bears have never really gone below you don't see it on this chart never really gone below the ma200 in the weekly and never really held it for more than a little while couple weeks a few weeks at most it's a long-term uptrend it stayed that way so that's how you set the table so when you look at this and you understand okay that's qualcomm sorry but that when you look at this you understand this is a correction after a massive advance and the massive advance was spectacular we had signals we had entries and we understood that all this price action was in the context of the prior high i mean look i'm not going to go over everything you've seen me have talked about it all my youtube videos are there i don't have to delete them because they age well so go ahead and check them out you'll see how we got here we've been do a relief rally right what's a relief rally um even when it's incredibly bullish or even when it's incredibly bearish let's say it's incredibly bullish and we'll take the the bitcoin weekly chart for example all right so like a relief rally let's just see if i can get this going here a relief rally would be kind of relief rally for the bears in this case you get kind of a pull back to the ema 8. it's so bullish you get the over extension upper bollinger back to the ema over extension back to the ema eight so you can have a relief rally i'll flip it up for you now you see what i'm saying right now look at this the relief rally relief rally and then at some point it stopped it put in a higher low it had a break and it you know it kind of did its thing so relief rally it's it's um it's a temporary reversion to the mean it's a temporary movement back to kind of the middle of whatever the trend is and so let's see bitcoin you know you you really never almost never stay below the lower bollinger that long even when bears have been in charge and they've been in charge bears you know bulls have been tired all the way down we've talked about that um you know and you have all that price action here at the ma200 you get the relief rally eventually stall it to ema 34. so when you're in this corrective mode and this is a review of what i talked about i'm just checking in the chat room can get a little bit on a tangent here all right everything's good everything's good afghanistan scotland canada london nicaragua indiana i love you folks when you're in this mode and you know your relief rally mode you're kind of thinking you're just watching where for for the watermark high watermark ema 34 high watermark ema34 so here you're kind of expecting it to stall here it didn't so that's point one right bears are losing some momentum here right what are the clues we now have two closes above the daily ma50 that's a big clue sorry right here this orange line right we weren't even able to tag it here weren't even able to tag it there forget about it this time and then there you go so after btc broke 40k it's panic time panic and flush time because breaking 40k brings kind of this whole channel the bottom of the channel you know the 30 to 33k area top of the channel right breaking that flush brings this whole zone into play it's panic but you still have the price in relation to the the bollinger band thank you john bollinger who's uh he's still on twitter check him out you still have the price relations the bollinger band it's due to mean revert it's doomed to do to kind of bounce back to lisa that middle line the m820 so now we're watching ma20 what do we see the brown line simple moving average 20 period rejected rejected wouldn't even wasn't able to make it there rejected you know rejected so you're watching for clues it's your job as a technician as you're analyzing the trend you're trying to understand the strength of the trend uh to see kind of what the trend is doing all right and ma20 we recaptured the m820 so here we have okay that's something right here let's clean it up you have all right that's something here we're kind of recapturing the ma20 but it's probably going to reject here at the yellow line because it rejected here and rejected here well what happened you didn't reject so you're seeing signs of momentum but it's in the context still of the channels the horizontal zones the bottom of support support support support support failed double eve i did a video on this the double eve there are a lot of fun memes about what i was drawing it's a double eave double rounded bottom okay that's the support so what is that going to be that's resistance right high wave spinning top just closed second candle above the ma50 but it's indecision volatility candle you kind of expect it to pause here because you've kind of been expected to pause here and it didn't and you expect it to pause here and it didn't so it's it's gonna slow down because downtrend goes sideways before up and there are there's always a switching over the the the momentum there's a seesaw to it and it's just two steps forward one step back even if we're gonna go to whatever 60k maybe you're gonna go one step back you know at some point so you're looking for setups looking for maybe we do a head and shoulders i've been looking i've been kind of looking for a bowl case here um and i started looking around here you see my tweet my twitter i put it to my twitter put my tweet out where i was kind of looking for a head and shoulders inverted here um you know the neck bass initially i was thinking right around here but we pushed through that so you know rule one and technical analysis and then uh is really you want to listen to the price we can see that's the level to watch right really the underside 455 46k where it was rejected your sole focus right now should be to watch really this level for confirmation that bulls are back all right pay close attention to that level you know back here i'm i'm not as clear where the support is is it ema 8 probable uh is it kind of right at this level what is that just at 40k also probable or is it kind of down here where the were the bounce initially rejected right also possible so it's a little bit unclear to me which of these is kind of the key support level i can tell you what the key resistance level is right so you think about with a chart a chart is a puzzle and you think about what you can you're filling in a crossword puzzle right you fill in what you know you can fill in in this case it's the resistance so we've kind of got that covered talk about litecoin litecoin is fun i've been talking about this trade on bitcoin live since um middle of december and some of my other you know colleagues were a little bit more bullish than i was now it's fine um but in my view you know we see where it kind of topped off um where it kind of had the up thrust or the failed bull move and uh rejected and kind of slow bleed and kind of in this context where we were back i think this is when bitcoin had i believe bitcoin had its failed head and shoulders uh inverted shoulders there it is right here yep and then we broke that uh actually no that was up here actually so i need to be more precise that was when we had the failed double bottom so it was kind of in that context where it seemed like bitcoin was failing to do that double bottom and you know litecoin had been bearish trends continued we were below the 200.
and you know it's almost always bounced off that hundred range 100 range 95 to 105. so i started talking about a trade and i took it and nobody you know you don't want to touch it at that point and the market's super blood red um but you know entered it basically at like a 102 ended up just holding on to it because my stop-loss was 95 uh we didn't quite get there kind of hung around um i will be honest i'll be completely honest and even on my bitcoin live videos i said that where it's like i don't know i might have to cut here may not you know it may not make the target but it ended up doing it it was nice that was up here i envisioned to drop down to support dip below a hundred psychological level scare people and bounce and where are you bouncing right back into the underside right right back into the underside of support and that's the same concept here in bitcoin where we are potentially going to bounce right back into underside right i'm gonna check with the chat room real quick hi from hawaii uh this is a rough call hey but it worked out it was a rough call but it worked and not great i saw it just made sense sometimes it makes sense uh greetings from australia so listen i want to talk about volume there's a there's this um there this meme going around is completely wrong and that's the thing so first of all be really careful about like oh you don't know what a pattern is just like googling it or especially at an image this is completely wrong all right there's several things you need to need to know about volume and i've talked about this i talked about this on my my latest tutorial i have a new one coming up i've talked about it on twitter many times everything i've ever done anywhere so let's look at uh like for example let's look at this second one um price increases uh you know price increases and the volume decreases what you need to understand is um every single pattern starts out with high volume and then it will slowly trail off until the pattern completes right every pattern starts out with high volume and it's it will slowly trail off until the volume completes so like for example the price is increasing let's say you're doing uh like a bull flag but it's not like a down sloping really a bull rectangle and even a slightly rising one price decreasing doesn't matter right that would have that would be counter trend force right every pattern starts out er you've seen in every single pattern an ascending triangle bull flag you always start out with high volume and then the volume will trail off and then and then basically you um you know the pattern will the channel will break let's go back to that image uh what are we doing here so the yeah i'm bouncing around here i gotta find it so the point is right there so ev you have you have all this you have when the when the trend is moving in a direction you don't need volume is what you need to understand right when the price is moving uh in a certain direction you don't need volume right because there's already an imbalance in the supply and de in the supply and the demand you've already got momentum right so volume will come when the trend is challenged volume will come when the trend meets resistance right volume will come when the trend gets to a point where it it's gonna battle it's kind of battling so you know the context here was uh let's go like the bitcoin daily chart we're looking at the bitcoin daily chart and we're looking at the fact right here where we've got kind of the price rising and we've got kind of you know some some falling volume maybe you have some falling volume right it's already bulls have already kind of started the relief rally at this point and we knew uh we knew that a relief rally was afoot right we knew that a relief rally was happening um you know at that point because we were below the lower bollinger band we have been overextended and we essentially had the spring we talked about this i did this in one of my recent videos where we already had the spring right with the spring at that point so we were back above that low that was already given some bulls had some momentum and then you started to get lower high brakes and you're just trending you're trending you don't need volume and really when you see the volume declining you know what that's going to point you to is when that channel is going to end that points you to when that consult when that chapter in the price accident going to end and you got it here excuse me you got it here you got the volume here when it broke out right you got the volume there the channel broke boom nice volume on the confirmation so you want to look for volume when a pattern completes when it breaks out and when it confirms but when it's in the middle of the channel it doesn't matter like like like rising price and falling volume like it's just not a thing it just doesn't matter it doesn't exist and what you want to focus on is where the volume is if there's volume on the breakout that will confirm it okay um if the prices and it's what you want to look at is where the volume hits let me try to find a good example of this it's not just volume but it's volume on which candles and where they appear kind of in the channel so let me try to find like an example of something that to make my point here okay just a quick random one i'm going to find something really clean that will make my point see here what do we got oh that's ada huh volume there let's see you're looking for like a really clean breakout and then you want to see the volume right out right here all right so this one this is what you're looking for and this is maybe it's a bad example because it didn't work out the way i wanted that you would think initially but what you look at first is here you have the volume right all this accumulation and then you look at the red candles you're starting to look at what's the volume on the red candles and there's kind of medium and just mild selling off there wasn't heavy selling off now this chart actually continued down so it turned out that that wasn't you know this wasn't as good information in this case but it's one of those all these principles are like 65 75 percent of the time they work right that's 70 of the time they work and you're always looking for little clues and when you have a big move uh like here it worked out better here and you can kind of see it better here where you have the green volume on the acceleration and you're looking at these candles these two red candles you're looking at it's called the counter trend volume you look at these red candles there's light volume sometimes you get a big green up candle with light volume and then heavy candle on that like red candle right after it that's a really bad sign so it's not it's not just in general like up down up down you have to understand the volume will trend start out heavy and then you'll volume on the break you're going to understand you have volume at the top and the bottom of the chart right that's that's a pretty common that's a pretty uh unders well understood con um concept and it's you want to look for volume the counter trend volume you want to see where you're getting the volume that's you know that's why things like the obv come into play like the obv is adding up the buy and the cell volume and that's how you get a trend and that's why the obv you use something like the obv to confirm the trend right um it's funny though these days i don't even look at those indicators all right what's going on here i'm going to say a quick what's up to everybody in the chat room uh to see how everybody's doing what do i do besides trading well i'm writing i'm working on a book right now it's called um it's it's it's called trading quotes and it's essentially the quotes from my book um about half of the quotes from the book the best stuff and then all i went through like six years of my stuff on twitter and found some really good stuff and then everything since i'd published the book i had a bunch of really good quotes um and i put the whole thing together actually it's gonna be one a day it's 365 quotes so that should come out later this year i'm working on that i'm writing i love to garden but it's cold right now um i love to play basketball but it's cold i love to fish but it's cold so i'm playing video games right now and i'm working on the book to be quite honest and i've been working out recently too i think that's helping out um and chad's dances when he's when he's um what do you do let's see how do i how can you start trading as a beginner yes go to my youtube go to the tutorial playlist and watch these videos that will teach you how to read a chart from there you know you're going to have to figure out an exchange and go trade at the exchange and you know and do whatever you're going to do there uh let's see a couple more in the chat room see everybody's doing yo yo from jordan what's up dean how's it going hey chad i'm a little confused you can play duh great explanation awesome you are the men thank you croatia what's going on um all right cheers from amsterdam and netherland it's great i'm really glad you folks came here tonight i'm just gonna remind you of course i'm on twitter i'm at big chads i hope you enjoy my feed i enjoy interacting with you uh you can find me i am a founding analyst at bitcoin live the best in class educational platform for quit crypto twice a week full market updates uh from me i do not miss one it's really important to me and you get access to everybody's content when you sign up so it's really something that you should do if you're if you're serious you really want to learn and and you know you're sick of of of making mistakes and and having trouble uh the books on amazon of course there are four formats kindle audiobook um hardcover and paperback i actually have the hardcover here too um but like if you can't buy the book or you don't want to buy the book just go look at the free version it's on my youtube channel and by the way thank you for watching please hit like and subscribe um go to the youtube channel check out the playlist i have the whole thing for free i've got a great long form interview series i have four i have another one coming up this week i've got some like podcasts and stuff a lot of stuff coming up so keep an eye on this on this on my page quick market updates like this check that out um that's it so like i told you earlier you know what level to watch we really want to watch 46 that's the key level 44 45 46 we definitely want to also continue to close above um you know the ma50 i think that's going to be incredibly important as well all right folks big chad loves you alright never forget that you
2022-02-11 00:45
