What price will Bitcoin stop falling and where it can possible to reverse?
Is it possible Bitcoin to recover from such a fall and will we see any Bull run this year?
So in this video we're going to discuss the huge drop we saw in bitcoin yesterday and what this could potentially mean, how bad is this and what are the implications for bitcoin in the next potentially next few weeks, next few months, which is obviously going to be very important. Uh, let me just first of all, start by showing you this. I don't know if you saw this in my video yesterday, but it's quite important to mention this as I was making my video yesterday afternoon, you might've noticed something quite interesting and it certainly caught my attention, which is the pulse signal. Now, you can see at the time I was making my video a bitcoin was a 6,262. Oh, five. Okay. As you can see, and this happened on the pulse indicator, look at that. So the red dots suddenly turned from red to blue. This is something we've been waiting for many weeks, at least for a few weeks.
And finally it happened yesterday as I was making my video. And I have to tell you, when I first saw it, I couldn't believe it. Uh, but as you can see, I've written it down here. The pulse appears to be firing to the downside but not confirmed yet, but what that pulse actually meant was it a potentially big move was going to happen on bitcoin. It transitioned from low to high volatility and of course because the momentum, was that a downside? We're expecting the movement to be to the downside as well. By the way, let me just say this, that we had no reason to be in bitcoin in any case because as I mentioned to you in my video yesterday, so let me just show you this. Just a few days ago on the 13th of November. Okay, this is what happened. Take a look at this.
So on the 13th of November, Bitcoin, this is a bit stem chart. Bitcoin closed below 6,300. Well, now why is that level important? Because as you can see it close below the last lte velocity position, one of the most important mathematical rules we have in trading is that when price closes below the last lot of velocity position with absolutely no reason to be in the market. Why? Because it increases the risk of further movement to the downside as we saw yesterday. So when you think about it, the market was giving us plenty of opportunity to protect ourselves against risk. So this is one of the most important rules we have in trading. Certainly it is true that my perspective on Bitcoin. Let me just tell you what my perspective on Bitcoin was. So as you probably saw from my video about a few weeks ago, I said, as long as bitcoin remains above 6,000, I remain bullish.
The smart way you should try to start Bitcoin trading with small amount of money
Now, of course we did change this level from 6,000 to 6,300 just recently. Now. Yes guys, it is without a doubt that my perspective on Bitcoin, my bullish perspective on bitcoin and my expectation that bitcoin was going to rally from October to December, that turned out to be a wrong call. And indeed I admit that. Uh, let me just say there are some people on social media and on Youtube who never admit to the wrong calls and predictions. Well, I am not one of them. Those people out there are sociopaths and narcissists, as I'm sure you know by now, if we make a wrong call here, we admit to it, and that is because you as a professional trader know by now that the markets are giving us probabilities and not certainty are guys. So as you heard there in my previous videos was that if bitcoin was to drop back down to its previous levels like 6,000, 6,000, 100 and of course 6,300 and my recent videos, then the odds will change.
The odds will massively change and we have no choice but to change our minds, we must change our minds if the facts change. When we saw the price of bitcoin going below, below the lte velocity going below 6,300, we had no choice but to change our minds and that is how professional traders can in fact limit their risk and not end up being in this situation. And that brings me to a very important point then guys. I know how it works on Youtube and social media. I know some people will scroll through the video at the most important points, but guys, I highly recommend if you're watching this video, you want to learn and learn a deeper truth about the markets. Please don't fast forward this part. All right, because it's so important. In fact, I highly recommend that those of you who want to take this seriously buy this book you see here called trading in the zone by Mark Douglas.
It is a fantastic book. It will change your life and I think as a first step if you want to become a professional trader. Here's what Mark Douglas says in this book. Read this part over here. He says, trading has nothing to do with being right or wrong for the traders. We have learned to think in probabilities. There is no dilemma, and he says that professional traders know that trading doesn't have anything to do with being right or wrong because we know that deep down the markets are all about probabilities, not certainties, and that is why guys, a lot of folks on social media, they want the impossible. They want certainties when in fact the markets are based in probabilities and uncertainties and also in this book is there something interesting? He says, we need to be rigid in our rules, but flexible in our expectations, and what does that mean?
It means that if you're following a system, if you're following a methodology, you must stick to that method, but be flexible in the outcome. Okay? Because the markets can change our minds very quickly and that explains why as professional traders, we must be prepared to change our minds. Okay? So when the market goes below a certain level, like the lte velocity position, we must as a result, change our minds and protect ourselves against risk. And of course the people who do not choose to follow these rules end up losing more money because they ignore the risks. So one thing I would say this right now, guys, is this, at the moment bitcoin has taken out the key support level. The key support level right now is 6,300. All right? And, and you might even say the key support level of 5,800 as well. So we have broken below this level, the unthinkable has indeed become the reality.
So we have indeed broken key market structure and as a result, this is very likely heading down to the $4,000. Now I don't think it's gonna end at 5,000 levels. And by the way guys, just to give you some context, the levels we're at right now are about the same level as we were at October of last year. I think we're about 50,000 October of last year. So do I think that's going to go potentially lower than 5,000? Yes, absolutely. And of course we'll cover that in a separate video, but I've already mentioned that the fabric of market structure, a break of support is likely to lead significantly to lower levels. And I think we are getting down, I think we're potentially going to head down to the 4,000, $4,500 in the next few months. By the way, one important thing I am keeping an eye on here is the Delta Vortex. Because notice this, notice the delta vortex suddenly is now rising. Now why is that important? It means that when the Delta Vortex gets above that line, we could potentially see an orange and a blue signal like we saw over here and when we get that, we could see a potential long or indeed a reversal or by opportunity right there when that time comes. So there is something very interesting happening here on the Delta Vortex and we can just be patient enough and wait for that to happen in the next few months.
Right guys, thanks very much indeed and I'll see you guys in the next video update.