This Is HUGE For Bitcoin: You Need To Know This

Hello, hello everybody. Welcome to this week's Bitcoin update. If you want to figure out exactly what you should be doing this week for Bitcoin and the exact trade that you should be taking, plus a piece of fundamental news that will really, really help you out as a trader in deciding what to do this week, you're going to want to stick around until the end of this video. But first off, let's talk about this daily higher low. I don't know if you guys remember, but last week I mentioned that until Bitcoin fills in $22,600, which is this daily fair value gap right here, it was not going to continue upwards, and I said to expect a higher low to form at this daily higher low and for the price to be able to retrace all the way as low as $21,500, and we would still be bullish in terms of market structure. Currently, we have gotten just that. We have confirmed the higher low, and this is a great case for the bulls. With the confirmation of this higher low as well as the break of market structure at this high right here, we have essentially confirmed the fact that Bitcoin is going to at least hit $25,000 and it will be very likely to hit $28,000. Now why do I say that it's going to hit $28,000? Well, for those of you who are new to this channel, for the last few weeks now I have been mentioning about this BTC CME futures gap. Now here is a pro tip that you can take away from this video: every time you are trading Bitcoin or Ethereum or anything that has a CME futures or a traditional market, you're going to want to make use of this knowledge. Now the reason why I bring up the traditional markets, because most of the time people believe that there is zero correlation between crypto and the stock market, but that is simply not true. For example, Bitcoin is highly correlated to the S&P 500 in the form of the E-mini futures. So usually what happens in the E-mini prior to the market open, or even during the market open, can give you a lot of knowledge about what Bitcoin wants to do. For example, if the E-mini is going down, well, expect Bitcoin to go down for that day as well. And this, my friends, is where we get on to this pro tip, which is the CME futures. On the CME futures, you will be able to see gaps. For example, this gap right here. If I just move this thing away, you can see that there is a gap over there. Now, what a gap is, it's an imbalance. And imbalances are essentially created when the market makers are repricing the asset downwards, or upwards for that matter. Sometimes they do it a little bit too aggressively, and then that leaves like, you know, an imbalance of buyers and sellers over here. For example, people that wanted to buy here, for example, may not have gotten filled. And so eventually these gaps always get filled. For example, the people who were following me for months and months on end knew that I predicted the Bitcoin bottom to come exactly at this gap right here. Now take a look at that, right? That gap happened in— let's see here— at the end of 2020, and it was not until almost 1.5 years later that it got filled. So gaps always get filled, and gaps are so powerful because, like, check this out, you have this gap right here Right? This predicted this, the bottom of the Luna crash again, right there. That's the power of gap. For example, over here you have another gap. Bam! It predicted the bottom of this dump right here twice, in fact. And this, my friends, is the power of gaps. Imbalances in the market— you can quote this— imbalances in the market always get filled. And it might not happen immediately, but it happens sooner or later. In this case, we have, you know, next obvious point of imbalance is right here from $27,350 up to about $28,700. Now, this is important to understand because, well, simply put, there is no further gaps below that needs to be filled, which also means that until price hits $28,000, $28,750, give or take, we're not really going to be putting in lower lows and switching market structure into bearish. Because simply put, this basically just means that until price hits $28,750-ish, price is likely not going to be switching into bearish market structure and going even lower as many of the influencers on Twitter or YouTube might lead you to believe. Because simply put, there is an imbalance here. The market makers are people that are hungry for money. I mean, probably 99% of people in this world are hungry for money. Nobody's going to complain about having lots of money, but that is besides the point. The market makers, well, they are especially greedy. And when they know that there is an abundance of orders that were not filled here and there exists an imbalance, well, they're going to want to go and fill in that imbalance, right? If people are willing to buy here, then they're going to oblige. And once people buy here, they're going to reverse the price. Simple as that. And the market makers who reverse the price are going to go short, and that's how they profit. Now forget about the market makers. Even if these market makers did not exist, we can talk about the algorithms that these market makers use. Because all of these algorithms that deliver price action— which, by the way, another fun fact, almost 80% of daily trading volume is accounted for by algorithms. So most of the time you're trading against robots, you're not really trading against people. And these algorithms are literally programmed on the basis of trying to find equilibrium in the markets, right? They want to make sure that the markets are balanced. So if there exists an imbalance Well, the algorithms are programmed to literally bring the price back to rebalance the markets before the next move, whether that be down or continuing up. We don't know that yet, but I've been talking about a pump to $28K for literally a month, maybe even 2 months at this point. Just, that's my take on it. Feel free to disregard that, of course. But as of now, not only is the 4-hourly market structure confirming this, but the daily structure is confirming this as well. So that was a little like 3-minute excursion into what was hopefully a really good tip for all of you guys. If you guys appreciated that tip, I want you to comment down in the comment section below, CME. It helps the algorithm out a lot. And drop a like on this video. That really tells me that you enjoy this kind of format where I'm sprinkling in some tidbits of pro tips every now and then in what is otherwise an analysis video. So perhaps in this case I should not put the TP2 here and I should move it all the way up to $28,700 because that is where the CME futures gap exists. So until this level is filled, I do not expect Bitcoin to fall. And daily structure confirms this because for those of you who have not already subscribed to my newsletter, you're going to want to do so because every week I literally give you a breakdown of everything you need to know for the upcoming week, and I even give you trade ideas right there. Like, it takes a little bit of time to make a video, but every Sunday without fail I'm going to get out a weekly Bitcoin outlook that tells you literally the trade you need to take for that week, and I'll give you all the other pieces of information that you need to know heading into the week so that you have an edge over the markets. If that sounds like fun to you, there will be a link in the description box below to sign up to the newsletter. But otherwise, given that this was the previous daily high that needed to be broken Currently, as this high is taken out, notice how we have not only confirmed the higher low on the daily chart but a higher high as well. Now, this means that in the event of a pullback, you should be looking to buy like immediately. And the target for this is at the minimum going to be $24,700 as well as $28,700. And for those of you that followed along with my trades back down here, that is going to be my first target, right? I'm not taking profit yet. That's going to be my first target. So now that you understand that market structure is incredibly bullish and the targets that Bitcoin is going to go for, what if you're not in a trade right now? What if you did not take my advice and you are not in a long right now? Where should you get in? Well, simply put, I'm going to be looking for some kind of area of value for a retrace in order to buy Bitcoin. And in this case, the 4-hourly doesn't give me a very clear picture, so I'm going to go on to the 1-hourly chart. And honestly, I would say the first level that you can realistically expect to buy some Bitcoin is going to be at $23,750, which is at the previous daily high. Now usually previous highs and previous lows tend to be an area of liquidity. And talking about liquidity, this brings me back to another pro tip, which is the markets always move in the direction of where the liquidity lies. Where there is liquidity, that is where the markets are going to go. Because again, for example, if you're going on a long, right, how many times have you recalled placing your stop loss beneath a recent swing low, right? And trust me, like, you're not the only one that's thinking of that. If you thought of that, there's probably like a million other people who are thinking the same thing, and the market makers know this. So wherever there is previous swing highs and previous swing lows, there is an abundance of liquidity there in the sense that everyone's placing their order at a very similar level. So what you will often find is that after you take out previous swing highs, you will tend to reverse. Like for example, in this case here, you can see that there are a lot of equal lows over here. What happens after you take out that level? Bam, you reverse. Why do you do that? Well, because simply put, a lot of retail traders are going to be fooled into thinking that as price breaks this level, price has broken support and it is going to go down. So everyone will start shorting here. Not only that, but the people who were long at any point over here would have gotten stopped out by this move if they placed their stop loss Beneath these recent swing lows thinking that it was support. All of a sudden you have a lot of orders that are filled, and if you are the market maker and everyone is going short, what do you do? Well, you reverse the market upwards. So everyone that got in here would have been trapped essentially. They would not have been able to get out of this position unless they closed the order in a loss. And for everyone that loses money in the market, guess where that money is going to? That's right, market makers. Hopefully this little pro tip gives you an insight into how the markets move. And once you understand just this simple little thing, trust me, it's such a game changer. So first level that I would look to buy Bitcoin at is going to be $23,700, give or take. The second level that I'm going to be looking at is over here at $23,350. And for this case, I'm going to hop back onto the 4-hourly chart. Now if you buy Bitcoin at any of these 2 levels, expect You know, some kind of retracement lower, because currently I don't really see an area of value where you can get in. In fact, if I'm just totally honest, you're probably not going to have much of a retrace at all until you take out $24,650. So in that case, we might not even get a pullback at all. But if you do get a pullback, then these 2 are going to be superb levels to get into Bitcoin. And again, this is my TP1. and $28,000 is going to be my TP2. And of course, everything that I've been talking about in here, like for example, I recently shared a mega thread on how to read market structure and everything, and it's for free on my Twitter. Like, just making market structure simple, how I look at the market. If that sounds like fun to you, make sure you follow me on Twitter at _TheArtOfCrypto. I've been really active here and people have really appreciated the amount of advice that I've been giving on the Twitter. So now we get into the bit of news that you need to know this week because this is really, really important. Like, if you stayed until this point in the video, which many don't, then this is where you're going to get the greatest benefit because we're going to be talking about the Federal Reserve now. On Wednesday the 10th of August, we are going to get another announcement of the CPI report. Now this matters for 2 reasons. Firstly, the Federal Reserve has openly admitted or committed to the fact that they are not going to allow interest rates to go above 3.5% by the end of the year. And given that we are already in August, we really only have about 3 more FOMC announcements until the end of the year. Currently, interest rates are sitting at about 2.5% at the moment, and with this schedule in mind, it could be reasonable to expect that perhaps the next FOMC announcement is going to Announce an interest rate hike of about 50 basis points, while the following 2 FOMC announcements are going to announce a 25 basis point hike for the interest rate. And this is really bullish. For the last few months, we have seen at least 75 basis points in terms of an interest rate hike consecutively, multiple months in a row. And that is really, really bearish for the markets because when interest rates are going up, money becomes scarce. People do not get easy access to money. Because of that, liquidity in the markets tends to dry up. And that's why you saw that over the last few months, like, as the federal interest rate was going up and up and up aggressively, you can see what— how the markets have reacted, especially in risk-on assets such as Bitcoin, such as the stock market, such as all the equity markets. This is what happens. And not only that, but you're getting a ripple effect in the forex markets as well, because since the US interest rate is so high, that makes the USD stronger than almost every other foreign currency out there. So for the people not going long on USD right now, they're really losing out. So this is affecting literally the whole world. And given that they have committed to this 3.5% number, this is really bullish because it also means that we will have a chance at seeing inflation peak within the next 3 months. Because if they are able to slow down the interest rate hikes, that means that inflation might not be as big of a thing anymore. And secondly, the reason why this is bullish and why this matters to all of us is as the Federal Reserve becomes less hawkish— and the Federal Reserve being hawkish simply means they are trying to do everything in their power to combat inflation— and when they switch from a hawkish stance to a dovish stance where they are not as aggressive fighting inflation anymore, then this is really bullish for the markets because then it means liquidity finally has a chance to come back into the markets. Maybe the fear is going to stop and people can jump back into the markets. So while I would like to say that all of these pieces of news is going to lead to a $40,000 Bitcoin by the end of the year, I simply do not have the data for that yet. In fact, the first realistic level we need to overcome first is to get to $28,700. If we do not get there and we break daily market structure, that means that the markets are going to continue downwards and it's going to go way below $18,000. And if there are any updates to that whatsoever, make sure you subscribe to this channel if you appreciate such an in-depth breakdown of exactly why the markets move the way they do and how these fundamental news are going to affect the markets. But for now, $28,000 remains level. I'm not really going to talk much further than this week because honestly it doesn't really matter. Once $28,700 gets hit, then we will observe market structure and perhaps we might even go into $30K for Bitcoin, but that is still a ways away. And if you appreciate these in-depth breakdowns like this, then you're really gonna love the private Discord group because not only are you going to be able to follow along with all of my trades as well as my market updates, but my team as well. In the process, you're going to get access to a trading course that will really speed up your learning And if you just want to get started off on the right foot, this is going to be the place to be. People are making money literally every single day. And what can I say? This is a skill that after you learn is going to stay with you for a lifetime, so it will pay off. That sounds like fun to you? Head over to the link in the description box below. Until then, may the gains be with you, my friend. Bye-bye.