Dangerous Bitcoin price action on a 6000 mark.
Now, over the last few days, you probably aware that bitcoin not only went to test 6,000, the key 6,000 level of support, but also went below to 6,000 levels, which is certainly very interesting and when you look at a chart like this of Bitcoin, you might be reminded of that nineties pop song by fragment. I think it's called, the miracle is going to need a miracle, is going to need something to rescue it, and what it needs is more demand than supply. In other words, what it needs is buyers to come and rescue it. Now, I should just say that's just a few days ago I posted this ascent is to my members and this is my premium members and I send them this chart in our premium service and I talked about bitcoin and here's what I said. I said, ask for Bitcoin. Here's what the charts and the wave counts indicate, and I showed this chart of the wave counts and what I said about this chart was this.
As you can see here, I said the shorts indicates that the recent bounce and that's the balance we had last week has been corrective and that's the keyword here, corrective which means an ABC way for correction. In other words, this bounce we had here was an ABC way for correction, which means that a likely way five is looming and that wave, the wave five move could likely result and then retest of 6,000 or lower and that's the projection that I showed in my premium updates last week and that's exactly what we saw happening in the last couple of days. As you can see here. If I. let me just change this to a four-hour timeframe and this actually makes a lot more sense on a four-hour timeframe and there it is. So last week we saw bitcoin plodding going to grinding slowly higher and I think a lot of folks probably got their hopes up thinking, well that's probably a reversal and a bullish rally.
No, it wasn't actually from the pattern and the way it was moving. It clearly looked like an ABC wave for correction and this is the next wave lower, which looks to be like a way five. Now, whatever a wave it is, doesn't really matter. The bottom line is that we're below supports. We're below the key levels. In fact, actually just mentioned one more thing as I'm making this video, bitcoin is making a rather strong bounces. You can see here this green bar, senior, so rather a strong bounce. Now I wouldn't put too much into it. Okay, because I'm making this video on a Sunday and something important you should be aware, which is a lot of activity that happens on a weekend on bitcoin and cryptocurrencies should be treated with a lot of caution because a lot of this activity on weekends, it's done by bots and algorithms now and like a separate video about this for you, but essentially what you need to remember is that a lot of the activity that happens on Saturdays and Sundays should be treated with a lot of caution because a lot of this activity is driven by bots activity.
Not Organic actual trader activity, but a lot of it's done by again, bots and algorithms designed by institutions to manipulate the price and of course to manipulate investor behaviour, so you've got to be very careful when you look at a chart that includes we can action, which is why you often see me using a chart that excludes weekend activity, which is often actually more reliable, but bottom line this guys, as I'm making this video, you can see that bitcoin is comeback retested. The previous lows will essentially the previous lows off February. It's gone even below that level. As you can see there, it's gone below that level, certainly below the 6,000 level and of course below the key. April knows these levels are now holding as resistance for Bitcoin. We're below these levels and the only miracle that's really going to help bitcoin is the kind of miracle that gets bitcoin above those levels.
It needs to be rescued by buyers, so there must be more demand than supply and we need to wait and see if the price gets above those levels. Only if that happens can there'll be some hope and potential rescue for Bitcoin, in which case we could see up renewed rally in Bitcoin, but at the moment we've got nothing. All right, so certainly we've got a nice bounce here. Now I'm sure a lot of folks right now are thinking about buying bitcoin simply because it's dropping, but as I mentioned before, is the dangerous thing to do. Yes, it is true that Bitcoin is near just below support or resistance and it, yes, it is true that Rsi is telling us that we've hit also very oversold, oversold levels. Okay, but remember that in a downward trend when a market's dropping heavily in a strong downward momentum movements oversold levels like this can be ignored by the market.
SpOkay? And often that often happens, so just be careful about that. In fact, just take a look at light coin. Here's the chart of light coin and I warned about this a couple of weeks ago, two weeks ago, you may remember from my video when I talked about light coin being on the edge of a cliff and I said, look, light coin is dropping right now. Be Very careful, and when I made that video, price of light going at the time was here, let me show you. There it is, and I warned him. I warned very strongly against buying light coin at that time because I said, look, it's breaking market structure. It's breaking support and just buying simply because prices falling, you know, just buying Willy Nilly. That's not a good reason. That's not a good enough reason for buying a market.
The buying an Bitcoin asset, okay?
It doesn't, it doesn't matter what it is. And you can see since that time I made that video and since it broke, the key level light coin has continued to drop. So anyone who bought light Quanta that time near the 110 level, well they're sitting in a loss right now. And I want to bring this to your attention because in one of the best books ever written about the investing and trading, which I recommend everybody should read this book, it's called market wizards by Jack Schwager, one of the most classic and best books ever written about investing and trading. In that book, there's an interview with a trader, Cold Bill Eckhardt or William Cards, one of the best top traders in the world. And here's what he says, the interviewer, Jack Schwager, asks him, this is the question, are there any natural human tendencies that you think tend to sabotage success in trading?
By the way, that also applies to investing to in this instance, here's what Bill Eckhart says. Look at his answer. He says, there is what I refer to as the call of the counter trend. Okay? He said there's a constellation of cognitive and emotional factors that makes people automatically countertrend and their approach. People want to buy cheap and sell. Dear. This by itself makes them counter trend, but the notion of cheapness and dyrness must be anchored, must be anchored to something. People tend to view the prices they're used to as normal and presses removed from these levels as aberrations. This perspective leads people to trade counter to an emerging trend on the assumption that prices will eventually return to normal. Therein lies the path to disaster. Guys, if there's one thing I recommend you do is take that quote, copy it, I don't care what you do with it, but just stick it on a piece of paper in front of the computer and read that before you place the next trade because what Bill Eckhardt says there and that particular quote is absolutely spot on.
A lot of traders only learned this after making tremendous mistakes. They think the meaning of the word contrarian means you just buy just because prices are falling or going against the trend wrong. You have to combine that with other factors. For example, at timing technique, some kind of reversal signal, and I talked about this in two of my videos. I talked about it in this particular video here. Three things not to do when bitcoin is dropping and also this one over here. Three easy timing strategies for buying Bitcoin, so putting what Bill Eckhardt was saying, I'm sure there's a lot of people out there who when they saw bitcoin dropping here, they thought, okay, as a country area and they're going to go start buying, doing the opposite. Everybody else wrong. I've already explained in my previous videos why there would be a very disastrous decision to just start buying willy nilly just because prices are falling.
No, you got to use something. In addition to that, some kind of timing techniques, I'm going to reversal signal, so remember you can't just simply enter the market and start buying just because prices are falling. Anyone who did that as sitting in a loss right now and similarly, just because prices have come down to the previous levels we've tested does not mean there's good enough reasoning here to start buying either because there is no evidence at this point that tell us that this market is not ready to fall further, lower, and that means this guy's. The next few days for bitcoin are going to be absolutely important. I would say this week coming, this particular week is going to be the most important week for bitcoin because unless some kind of miracle can save Bitcoin, if buyers can get in, if buyers can rescue vehicle and get it back above those levels, then great dangerous potentially averted, but if it cannot do that, if bitcoin continues to struggle to get back above those key levels, then brace for impact. We're heading lower.