BITCOIN CRASHES AS MICHAEL SAYLOR STRATEGY GETS SUED! CLARITY ACT PUSH IS COMING!

**Tony Edward** (0:05)
Hey everyone, welcome into the Thinking Crypto Podcast, your home for cryptocurrency news and interviews. I'm your host, Tony Edward. On your way in, please hit that subscribe button as well as a thumbs up button and leave a comment below. If you're listening on a podcast platform such as Spotify or Apple, please be sure to follow and leave a five-star rating. Well folks, it is bloody out there. As they would say, there's blood in the streets because the markets are dumping right now. Bitcoin below $59,000, currently trading at $58,748.
So we've been talking about this over the past couple of months that we are of course in a bear market and we are in the bottom zone based on different metrics. However, no one can call the exact bottom as you can clearly see. The price can go down to 50K tomorrow or over the next week. We're just going to have to wait to see where we find the bottom. But the positive signs that we are seeing is that there is a bullish divergence forming on the weekly chart. And similar to the bottom in 2022, that bullish divergence with the RSI is ascending while the price is descending, but that doesn't last forever. It's probably going to go down a little bit more or maybe this is the bottom. And then we're going to see a bounce, right? Markets are cyclical. So we are, of course, in the depths of the bear market. And that's fine because we were in a bull market. I know the last bull market was a bit lackluster due to many different reasons, but we've covered that before. We want to look forward, and I believe there is a possibility for a strong reversal soon. Here's why I'm saying that. Bitcoin, with this move downwards, is in the oversold zone. So the RSI is below 30 So by the textbook, it is oversold. Now, the MACD on the daily did flip bearish, but it doesn't mean it's going to stay there for a long time. We've seen swings both ways. But I think, guys, we're going to be bottoming out soon, in my opinion. I don't necessarily think that we have to visit the 40Ks, as some people are saying that may happen in October.
I just don't think so. But hey, look, you never know, right? We're talking probabilities here. But, you know, I think the majority of the downside move is completed, right? Down from 126 down to 58K.
So this is where patience is important, and you want to have some sort of dollar cost averaging strategy. I've been telling you guys, I'm accumulating, buying a lot of altcoins, which are down even more than Bitcoin is. So this is the nature of the beast. Obviously, do your own research, but you can see clearly based on the metrics and the data, we are seeing similar patterns that we've seen in the past. So I like this bullish divergence that's forming on the weekly chart. Now, another factor I've been telling you guys about is a lot of Bitcoin in circulation. About 53% of that is now held at an unrealized loss.
So this is another signal that has flashed at the bottoms of these respective bear markets. And there's a bunch of other things like the Bitcoin MVRV 30 days still underwater, the 365, the one year is still heavily underwater. So eventually these things start to reverse, right? They don't stay in that same position forever. So this is where we want to again to be patient. Now with all this downward price move and Bitcoin being oversold, it does set us up for some sort of short squeeze, potentially. Not guaranteed, of course. Here's an article from CoinDisc talking about it, where it's highlighting that derivatives data is pointing towards a short-term relief rally. And the liquidation heat map shows a bulk of clustered liquidation risk above current prices, not below. That means that a move to the downside is unlikely to be amplified by a cascade of force selling. The real danger is for those positioned short. So, it's the same thing that happens, the inverse of what happens in a bull market, right? Where everybody gets super long and then they get liquidated. Same thing here, everybody's super short, because, oh, look, it's falling. Look at all the narratives, Michael Saylor, and we're going to talk about him in a bit. But, and then the short start piling up and then they get short squeezed, right? So, this is why you don't use leverage, but you can certainly use it as a signal, you know, is there a lot of longs or shorts piling up? And that could be an, I give you an idea of what may be coming next.