Welcome back to the crypto world channel everyone, my name is josh and right now, bitcoin is beginning to break to the downside. Here the price has not formed a new lower low just yet on this chart right here. So, technically speaking, we are still in an uptrend, but considering the fact that bitcoin did run into some resistance at these higher levels. Just here that led bitcoin into this short-term cool-off. As we've been talking about on this channel over the past couple days, i'll be going over all of my next bitcoin price targets, important levels to watch out for and my bitcoin strategy right now so make sure you're watching all the way to the end, so that You'Re not missing out on any of this important information, and if that sounds good to you just before we jump into it, make sure to leave a like on the video down below if you're new to the channel make sure to subscribe to the channel.
With notifications turned on for more videos like this one, but with that other way, let's get straight to what this video is about. So right here on the bitcoin us dollar chart on the four hour time frame and straight away. We can see, obviously, that the price is beginning to break this support level just here, this upwards trending support, of course, and let's quickly, go back a little bit and recap my last couple: videos, first of all, just over a week ago now i was making a Couple videos on the channel right here telling you that we're likely to see a short squeeze sometime soon we're likely to see an explosion to the upside in the bitcoin price. And, of course, we saw that and then right at this stage here when we started running into this red zone of resistance right here. I basically let you all know that we are due for a short-term call-off. I would expect the price to pretty much head sideways here in the short term and potentially slightly back to the downside and once again that is what we are seeing play out right now now, obviously, if bitcoin could get bought up here and actually break above the 42 to 43 000 level, just there, the higher level of this range of resistance right now with strong confirmation.
Obviously, that will be very bullish, but at the time we're filming this video. We are trading below this level right now, by the way, this level of support was coming in at approximately 40 000 us dollars and zooming into the two-hour chart. As you can see, we have already seen one retest of this previous level of support, which is now acting as resistance for bitcoin. So in the immediate short term that can act as a bit of confirmation here of the break to the downside, but we are still also waiting on the volume to pick up here, because right now we are still seeing pretty low volume, as you can see, but Yeah keep in mind as i've been saying on the channel recently any bearish price action that we do see on the charts.
I would be seeing that as a buying opportunity to hold for the longer term, especially for the beginners out there. The best strategy for the beginners is simply to dollar cost average and hold for the long term. And so obviously, if you're someone wanting to buy into bitcoin, what you want to see is actually some bearish price action in the short term because longer term we are still looking bullish, but in the short term, this could potentially give us some good areas to actually Enter into bitcoin and, first of all, an immediate important level that we need to hold above in order to technically remain in an uptrend. Here is basically just the previous low right now that previous low is coming in at roughly around 38.3, k. So for. As long as bitcoin can remain above around 38 and a half thousand us dollars, then technically speaking, we'll still be in an uptrend, because obviously we're still forming higher highs here on the four-hour time frame and once again, we have not broken into a new Lower low. Just yet but yeah, if we do make it down towards 38 000 and even below 38 000, then of course that would mean that we are breaking into a new lower low just on the four hour time frame once again, so that could potentially be Setting up. Just a short term downtrend, and in that case, if we do break that low, the next major level that i would be paying attention to for bitcoin is coming in at roughly around 36 and a half thousand us dollars so yeah, really in between 36 And a Half to 37 000
There is quite a lot of support in around that price range just there considering the fact that we have already tested that level once as support. But if you were on the channel around a week ago, when we initially blasted up towards 40 000 us dollars right when bitcoin peaked at roughly around 40 000, just there, the first time rounds after the short squeeze, i did actually say around a week ago that It is very likely that the price is going to come back down to exactly 36.5 k and get a bounce along that level, and so that did a play out there. As you can see, and once again that's where i would be focusing on for bitcoin. If we do break below the previous load just here to form a new lower low and also something that i have been mentioning for quite a few days now on the channel, the subscribers will already know about this.
But as you can see just here in the rsi, the bitcoin rsi, on the four hour time frame, we have been starting to form a little downtrend here in the short term, as you can see, and right now, this is still continuing to the downside. The bitcoin rsi on the four hour time frame once again, so what that basically means for bitcoin is. It is actually likely for us to experience a little bit more of a cool off here in the short term. Once again, as i've said in my recent videos, i do not expect any major crash, there's, potentially some good buying opportunities here to accumulate some bitcoin before bitcoin begins to blast off once again, so yeah we'll be paying close attention to the rsi as well, because taking A look at the previous time, the bitcoin did actually run up into this red range of resistance, just here in between forty thousand and forty two thousand us dollars. That was about one and a half months ago in the middle of june. As you can see just here, we did actually get a nice bounce along this green zone of support just here and then after then,
We basically just went straight up to the red zone of resistance just here before we did find that resistance once again, but if you're taking a look at the rsi on the four hour time frame, the downtrend in the bitcoin rsi came before the downtrend in the Price just here so as you can see, the bitcoin rsi on the four hour time frame was starting to reach these overbought territories, as the bitcoin price was also entering into a massive range of resistance and then, as soon as the bitcoin rsi began, this downtrend here After the rsi had already started the downtrend here in the short term, the bitcoin price then started a downtrend after the rsi, so going back to the current price action right now, as you can see, there is some similarities right now we did get that bounce along The grain zone of support, just here straight up into the red zone of resistance and right now we are in a short-term downtrend in the rsi telling us that we're likely to experience potentially a little bit more bearish price action until the rsi finally starts to bottom Out here and head back to the upside, now switching back to that previous time, once again around the middle of june to take a look at what actually happened after we started this downtrend here.
First of all, as you can see, the bitcoin rsi on the four hour time frame actually bottomed out during that time period in the oversold areas, just at the bottom of this purple band here, as you can see, i'm pretty much over the past two and a Half months throughout this entire time period, just here every single time that the rsi has come back down towards the bottom of the purple bench towards these oversold areas. What actually happens next for the bitcoin price? Is we actually head back down towards this green band? Just here, which is roughly around 30 to 31 000 us dollars, but once again that mainly comes into play if the bitcoin rsi reaches these oversold territories all the way at the bottom of this rsi band, this purple band just here so right now, of course, we Are not there just yet so if the rsi does continue to plummet here over the next few days, potentially over the next week, then it is possible that we could actually see some lower 30 000 prices again.
But, of course, those levels as of right now are not confirmed. I want to make that clear. We do have quite a lot of support in between where we are right now and those lower 30 000 levels. Once again, we have support in between these levels and speaking of support levels, one last support level that i'll talk about in this video. If we do break below that 36 and a half thousand dollar support level just there. The next major support for bitcoin is coming in at the golden pocket right here. The 61.8 fibonacci level, which is coming in at roughly around 34 000 to 34, and a half thousand us dollars right here. So those are the main levels of support that i am paying attention to for bitcoin right now and the main levels of resistance. Well, first of all, of course, we still have this massive red zone of resistance that i've actually been talking about on this channel.
For over two months now, if bitcoin can see a strong break above 42 000 with confirmation, so i'm talking a major spike in volume and preferably a re-test of those levels and confirm 42 000 as support. If that actually happens for bitcoin, i will flip very bullish and in fact i would be targeting the 21 week moving average right here. If that's the case, which, by the way, that's coming in at roughly around 45 and a half thousand us dollars as our next resistance to the upside, if we break above the 21 week moving average with confirmation honestly at that stage, i would actually be targeting towards The all-time high within the next one to two months, if, of course, we get a confirmed break above these resistance levels, first, so right now, we are definitely in an interesting time considering the fact that the bollinger bands right now do actually show some supports coming in
At the previous low just here as well once again, roughly around 38 and a half thousand us dollars once again. If we do experience some bearish price action, i would see that as an opportunity to accumulate cheap bitcoin for the longer term, because, in my opinion, from simply looking at previous bitcoin cycles, it is only a matter of time before bitcoin does actually start breaking to the Upside here and heading back towards the all-time high
So, if anything, the more bearish that we are in the short term, the bigger your opportunity actually is, and, as i said over on my twitter, there's still a lot of people that actually think that bitcoin is going to crash into the lower 20 000 price range And this does actually give us the perfect fomo setup after the short squeeze that we experienced around a week ago. Once again on the chance, there was a lot of people shorting bitcoin towards the bottom here, towards around 30 000. Approximately there was a lot of people entering short positions which was giving us extremely negative funding rates across all exchanges, and that was one of the main reasons that i actually used on this channel to predict the short squeeze ahead of time and right now. The fact that there's still a lot of comments in the comment section down below that are thinking that we're going to crash down towards around 25 000, 20, 000 and anything lower than that once again, the more bearish people like that, the better, because, of course, if We begin to head to the upside here:
All of those bears waiting for those much lower price levels will eventually fomo back in, which is obviously fear of missing out, because there will come a time where they'll eventually realize that those much lower price targets are just simply never going to happen, and that's happened. Many times by the way throughout bitcoin's entire history, in fact, switching to the daily chart just here, one of the most recent times that this has actually happened to bitcoin was right back here towards around september 2020. At this stage in the market at the beginning of september 2020, once again, when bitcoin crashed from around 12 000 us dollars down towards around 9.8 k, there were actually a lot of people in the market. At that stage right there waiting for bitcoin to crash down to 9.6 k, because at 9.6 k right back here in around july 2020, there was actually a cme gap and for the beginners out there, cme gap is caused by the cme exchange, which is a traditional Exchange so it only trades at the traditional business hours so in between each day and also on weekends.
Of course, when the exchange is not trading, that chart does develop gaps in the bitcoin price and once again we saw a gap at roughly around 9.6 k and all of these people back here in september 2020, waiting for 9.6 k waiting for just 200 lower than The bottom, just here completely ended up missing out on this buying opportunity and had to actually fomo back in at much higher prices. So the lesson learned here was basically don't necessarily wait for a specific price level lower than the current prices. The best strategy is simply to dollar cost average, especially for the beginners. So, basically, during that time period, just there, if you have just bought some bitcoin right there to at least secure some bitcoin at those prices, but not go all into bitcoin, so that if bitcoin does actually drop a little bit lower, you have some extra cash on The sidelines to put in at those lower prices, at least when you're, using that strategy, you would have secured some bitcoin at the very least at those prices, so that when the bitcoin price began to pump once again, you would have secured some profits.
At the very least, so, while those lower prices are technically speaking, not impossible, don't be the guy to wait around forever for those much lower prices. While we are experiencing these massive gains, because once again for everyone waiting for even like 25k to actually enter into bitcoin, you would have actually missed out on this massive 40 pump over the past couple weeks and by the way for the new viewers on the channel. I do actually store a portion of my crypto over here on my blog fight interest account by the way. I would not be sharing this if i didn't actually use it myself, because, as you can see here, this is actually generating passive income every single day, and already just from having my crypto sit on this block fight account. This has actually paid me over a thousand dollars in interest from doing nothing. This is completely passive income, so if you also want to get extra passive income on top of the crypto that you're already holding anyway, i do have a link to blockbuy down below it'll
Be the first link in the description and if you use that link to make an account, you can get yourself up to 250 worth of bitcoin for free when you're opening your account using the link down below once again and by the way all you need to Do to actually claim that free, bitcoin bonus is simply just to open your account using a link down below and also make your first deposit into the account within the first 30 days of you opening the account. And if you do that, you will receive that. Bitcoin. Bonus and the bonus that you do receive is relative to how much you actually deposit within that first one month of you opening the account