Why CZ's Prison Release Will Save the Markets

What's up guys, welcome back to another video. Now with CZ getting released from prison at the end of this month, this is a really bullish event, especially for BNB. For those of you who don't know, CZ is the founder and CEO of Binance, which is by far and away the biggest crypto platform in the entire industry. Even though this is a really bullish event, nobody's really talking about BNB and nobody's really bringing attention to BNB. And so I think that this is going to be one of the very obvious plays in September that you can take advantage of, especially while it's still at a good price where, you know, it might pump a lot more than people expect. This will be one of those buy the rumor, sell the news events, so don't treat this as like a 6-12 month hold. This is very much a short-term close within 1 month with 50% profit type of play. So without any further ado, let's dive into BNB and let's take a look at BNB on the weekly chart first. And one interesting thing to note about BNB is that currently it is one of the strongest coins out there in the entire markets right now. And especially amongst the large caps, it is currently the closest coin to its previous all-time high at about 37%. Now that might seem like a lot, but then you look at other coins where they're 40, 50, 60, 70% down from their all-time highs and you'll know exactly what I mean. This is especially true in terms of the large caps, meaning anything outside of Bitcoin. BNB is pretty much your best bet. Now this is also following a damn near 50% recovery from the liquidation event that we faced just a few weeks ago, and this has truly been a V-shaped recovery with BNB being one of the strongest Recoveries post dip. So all in all, there is already reason to believe that BNB has strength leading into this month, especially with CZ getting released. That is just going to be another bullish catalyst to add on to the existing strength. And one interesting thing to note about BNB is that even throughout every other coin basically going through a 50 to 70% dip, BNB was one of the only coins that actually pumped while other coins topped. And in fact, BNB made a new all-time high around June when everything was pretty much down at zero, basically. So again, we already have reason to believe, and we already have proof basically, that BNB is doing pretty good. So without any further ado, let's jump into the lower time frames to see, you know, what levels we could potentially get into BNB at to take advantage of this CZ getting released play. Now of course, besides CZ, like, BNB is a solid token to hold nonetheless. Given its strength, there is again always a reason. And one of those reasons is definitely due to Binance's, well, overall dominance of the crypto markets. It is very unlikely that Binance is going to go through anything catastrophic. In fact, you could even say that if Binance were to go through something catastrophic, forget a bear market, crypto would change. Like, everything about crypto and the way it is is going to change in some fashion. Now, the first thing I like to do every time I hop into a lower time frame is to determine what condition are we in. And we can see that we have pretty much been trading within a range of this being potentially the range high. You could even say that is the range high till about here being the range low. And currently we have swept the range highs multiple times and we have swept the range lows about twice. Now something interesting to note is that price actually found the perfect bottom at the— this is not actually the true weekly open, this is all the way back from March, so this is very likely the true yearly open. And for those of you who don't know what this is, it's just something that is a part of quarterly theory. It's developed by a trader known as Trader Day. Very, very good concept to learn. I'm not going to talk about it in this video. Feel free to look up his YouTube channel because once you understand quarterly theory, you understand a lot about the hidden mechanisms about how the markets move. And overall, great concept. Shout out to Day. But otherwise, this became pretty much the perfect bottom. And currently you can see that price is at another quarterly theory level. This is the true monthly open of last month. Now, the true open of the month is actually the first day of the second week of the month. So given that we have only just started the month, we do not have the true monthly open yet. But given the fact that you are now bouncing pretty much 3%, and given the fact that you are bouncing from the true monthly open right now, leads me to believe that perhaps the bottom could be in. Especially if we draw a fib from this low to this high right now, we can see that price actually— true monthly open lines up with the 50% retracement within this price range. And this is very much not a coincidence. The algorithms that the market makers as well as the smart money are using are very much programmed on certain parameters. This is the reason why you always see the same moves in the market happen over and over and over again. It's why the markets always move from volatility to low volatility, and then from low volatility you're going to stay in a range for a certain period of time, usually 3 months for macro movements, and then you're going to break out of the range. All of this is par for the course. And Fibonacci levels, you know, one of the reasons why they work so well is because guess what? The algorithms that are delivering price on a minute-to-minute, second-to-second, day-to-day basis, they are programmed on these exact parameters. And one other thing to note, now that we're on the topic of smart money and algorithms and all this stuff, is the concept of liquidity. One of the reasons why I believe that the price is probably going to find its bottom either here or very close to this level. I'm going to talk about this lower level in just a bit. One of the reasons why I believe that, you know, the bottom's very likely in, outside of quarterly theory, which is also very much rooted in smart money concepts, is the fact that if you take a look at this wick right here, you would have taken out every single person that went long at any single point here, and they would all been stopped out if they set their stop loss anywhere here or If they would have gotten liquidated, then, you know, the majority of the sell-side liquidity would have already been taken out. And if you now look at the buy-side liquidity, not only do you have some relatively equal highs here where a lot of people very well could be placing their stop losses above, as well as this previous level, as well as anywhere just in the all-time high category, anywhere just within the all-time high territory. All I'm trying to say here is that the probability that the market goes lower to take out the next bit of sell-side liquidity, which is going to be located at this wick here at around $360, to potentially about $340 is that, well, there is a long way away from price currently. And unless Bitcoin and the entire crypto markets takes a huge dump during this month, which is not totally out of the possibility, it's just a low possibility, then it's very unlikely that BNB is going to retrace all the way back there, especially when you consider the bullish catalyst that is CZ getting released from prison soon. At the end of the day, the trading is a game of probabilities. And if there is one thing certain about the financial markets is that nothing is ever certain. If you can simply learn to play the probabilities and always take the higher probability move, then it's very likely that you're going to win. So let's talk about this lower level as well. So essentially right now at $500, it is a pretty decent price to buy. Of course, if you were to buy here, then your stop loss is going to have to be, you know, pretty far down because the only true level of invalidation is going to be below $400, which, whoa, you know, it's really far away. It's like 20% away from current price. And I will give you the better solution to maximize your risk to reward later. But this again, right, this is the true invalidation. If you were to trade below this level, it would very much make sense where price would, you know, really confirm, you know, bearish market structure on the higher time frame. But until this happens, you can still very much take a bet that, you know, this is going to continue going to the upside, especially because when we look at the higher, higher time frame, you can see that pretty much we have been forming higher low to higher high. And, you know, maybe you can consider this as the higher high, higher low, but essentially until like this level is broken at, you know, $300, we're very much still in a bull market. I know it's not very helpful, which is why, you know, we're doing more of the analysis on the lower time frame rather than the higher time frames, because BNB just moved way too explosively, way too quickly for us to make any sense of the higher time frame. So let's talk about this lower level first before I move on to a better way to maximize your risk to reward. So on this lower level here, you can see that this lines up with the candle body liquidity. You have the wick I'm sure you guys have heard the term fill the wick before, and this level right here at $460 would exactly be filling the wick. And this also happens to line up with the 0.705 of the Fib retracement if we were to draw it from here to here. Again, this is not a coincidence. This would be my— personally, if price were to retrace like more, this would be my ideal level because now instead of going from a 20% retracement, now you're pretty much almost halving that to about 11%. And this also means that whatever risk to reward you have now instantly just doubled. Of course, this is still not going to be ideal, but before I get into the ideal way of maximizing your risk to reward, this is essentially the kind of setup that I would be looking for— just a sweep of these levels. Now, why do I say sweep? It's because if you take a look at the— well, for example, let's say that we're on the daily chart, which we are. This is the daily candle, and in every daily candle you have, just to put it into context, we have 1,440 1-minute candles. And the way that that's going to play out on the lower time frame is that you're going to have the majority of the volume concentrated within these areas here, and then you're going to have, you know, wicks that go above and below. And that's how you get these wicks. And one thing you need to understand about the smart money is that they have in their control a lot of money, and I'm talking billions to tens of billions to hundreds of billions of dollars. And it is super easy for them to manipulate the wicks In this way to trick retail into thinking, oh, you know, you're breaking out to a higher level or we're breaking down below to a lower level. But all in all, you have to understand that the majority of the volume is going to be concentrated at around the candle bodies. That is also the type of level that the smart money is going to be looking at. And if the goal is to trade alongside the smart money and to try to understand what they're thinking, then the candle bodies are going to be the levels where you want to be looking at. And so a candle body sweep plus 0.005 retracement plus, you know, sweep of the range low kind of setup. Is just the ideal setup if we were to get there. But if not, then the only other solution would be to momentum trade. And so now we get into the part about how to maximize our risk-to-reward ratio, and that is going to be to hop onto a lower time frame like the 4-hourly or even the 1-hourly chart, to where instead of setting limits on these levels and just setting a stop loss, which, you know, is a really far stop loss, we trade, you know, in the moment to moment. Instead of setting limits, we are essentially momentum trading. Essentially buying high and then selling higher. We're not really worried about catching the bottom because we know that the potential for BNB is to go by about 50%, right? Even if you were to just break your all-time high by just a tiny bit, you're pretty much sitting at 45% already based on current price. And if you were to start counting this from below, you're looking at more than 50% gains. If that is the potential, what is missing out on 5 to 10% of pumps so that you can get a high probability entry and selling higher? Like, that's not gonna really affect your top line by a lot. Might affect your bottom line by a bit, but again, you got to take into account the probability. Are you willing to take a bunch of losses trying to catch the bottom and lose a lot of money in the progress and also have, you know, a lot of anxiety and a lot of headache? Then you could just really wait for a more certain market condition and jump right in once your confirmation signals are in. And at least in the case of the 4-hourly chart, what you're really looking for is some kind of change of character, essentially breaking above a previous swing high. So something like this, and you're going to wait for a retrace and then go up. And your stop loss in this case is going to be here because the invalidation for this trade is if the market breaks below this low right here, it means that it's probably going for the lower level. And similarly for the lower level, once you have done this, you just want to look for some kind of change of character, essentially higher highs, higher lows to form. And then you want to place your invalidation around, for example, this level. So again, you know, you're going to be missing out on, let's see here, potentially 5 to 10% worth of pumps, but In return, you get a really high probability setup and you maximize your risk to reward by a lot. Even a trade that looks like this, just to give you an idea of how much you are really not missing out on if you were to, you know, wait for a confirmed entry, is that even the lower one might not necessarily overtake the higher entry, right? The higher entry here, just as a hypothetical scenario, is worth about 6:1 risk to reward ratio, and the one at the bottom is potentially 7, potentially 8, maybe 10. Again, not a huge difference. It all depends on how tight of an entry that you can get once your confirmation signals are in that, you know, you're good to go. In terms of targets for BNB, I'm not really looking for more than a 50% pump, but assuming that BNB continues to go higher, which it will throughout the course of this bull run, here are just, you know, 2 further out targets for you in case you want to hold BNB for a much longer time. Again, the premise of this trade that I'm sharing with you right now is very much one that is short-term. It's just taking advantage of the bullish catalyst known as CZ getting released from prison. And so for me personally, I'm going to be taking profit at the previous all-time high and potentially just around that like a flat, you know, 40 to 50%, or as soon as the market structure starts shifting bearish, which means that, you know, the news has already been done and people are starting to sell the news. And, you know, at that point I'll just get out, right? That's the exit criteria for this trade. For those of you who are holding BNB for the long term and you don't really care about the short term, you just want to get a good entry and hold for, you know, eventually BNB reaches $1,000, then these are going to be 2 potential TP targets for you, which is at around $900, i.e. $880 and around $8,040. If you enjoyed the information that you've got from this video so far, it would really help me if you drop a like. It truly does make my day. And a lot of these ideas that I'm sharing in the videos, I actually share 1 to 2 weeks before in my private Alpha group. So if you just want to follow along the trades that me and my coaches are taking, or just get some coaching on how you can do this yourself proficiently, then click the first link in the description box below. But otherwise, I'll see you guys in the next video. Stay safe. Bye-bye.