The Wall Street Bitcoin TAKEOVER is ACCELERATING | EP 1535

**Nico** (0:01)
Yo, Bitcoin crashed to 58,000 yesterday on the largest liquidation event in 6 months. And everyone is wondering, what comes next? The bears are pointing to BlackRock, sending another 300 million to Coinbase, as well as the massive options expirations happening as we speak today. But the bulls are pointing towards the whales buying, and Charles Schwab rolling out Bitcoin trading yesterday. But before we get into all that, let's listen to this quote unquote Bitcoin expert on CNBC to hear what they think.

**SPEAKER_2** (0:37)
Strategies founder and managing partner and CNBC contributor. I'd like to talk about a lot of different things, Kate, even gold. But let's talk first about Bitcoin, because 59,000 for months has been something that you said was important. And this is how many times have we seen it test 59 as a support?

**SPEAKER_3** (0:57)
Probably the third test. Is it going to hold?

**SPEAKER_2** (1:00)
And if it doesn't, I was talking the other day about if it didn't hold. And it wasn't you, I don't think, but someone told me some terrible number about where it could go if it broke 59

**SPEAKER_3** (1:08)
It's not to say the bottom drops out, but the next support, the next major support, we're talking low 40s.

**SPEAKER_2** (1:17)
I heard someone say even worse than that.

**SPEAKER_3** (1:18)
That can't be unheard of for Bitcoin, knowing the volatility, it's down about 30% after failing right at that 200-day moving average. It's almost perfect right there as resistance.
So that continues to be resistance. It's obviously trending lower. The good news for Bitcoin traders or investors is that we have a long-term oversold condition, and it's been in place for a duration at which it usually starts to impact the chart. So we're looking for stabilization. Ideally, it does happen in this range because it is a key Fibonacci retracement level, below which oftentimes a full retracement happens. So we're hoping to see it. 60,000 is also a key level as well.

**SPEAKER_2** (2:01)
Okay. So it's down 60% from the high or 50 and change?

**SPEAKER_3** (2:06)
It's pretty close to that.

**SPEAKER_2** (2:07)
So not 80 And other drawdowns before it was as institutionally accepted, and there were no ETFs. So a lot of people, the bulls that we have on say, this might not be a full drawdown like we've seen in the past, and we could be near something now. You think there's any merit to that argument?

**SPEAKER_3** (2:24)
I think we can still see those 75-80% drawdowns, but as a technician, I almost see the volatility as opportunity.
And when we do have those big drawdowns, which we can avoid using those trend falling gauges, then of course you have an opportunity to ride the relief rally, and those can be just equally violent as you know. So I'm a Bitcoin bull from a very, very long term perspective. I'm not really on board with these four year cycles. I don't have enough of them to feel confident in them, but I'm always looking for signs of downside exhaustion for that opportunity.

**SPEAKER_2** (2:58)
And it's just human nature.
You could use this in any market, but at 125, it's like, oh my god, it's too high. I can't buy it. I'd love to buy it. I can't buy it at 125 I'd love it. At 60, it's like, I'm not buying it.

**SPEAKER_3** (3:11)
It's market psychology at work.

**SPEAKER_2** (3:14)
People that wanted to buy it at 125 are afraid to buy it at 60

**SPEAKER_3** (3:17)
It's really hard to buy it into weakness, but it is often the right thing to do. We like to see a little convincing shift in momentum before adding exposure. And because support is being tested so hard, ideally, we see even a couple, three weeks of stabilization here before feeling convinced it's holding.

**Nico** (3:36)
All right. So we're at the part of the movie where CNBC is even bringing, you know, quote, unquote, technicians or analysts on legacy media, and they're trying to essentially chart boy or chart woman in this case, you know, where the price of Bitcoin is going. The only part I fundamentally disagree with her on is the how she mentioned the four-year cycle, even though the four-year cycle theory is the only theory that has remained intact. And for some reason, most of the community has been very against that theory. I've been saying this since October. Like, I think the four-year cycle is in play. It's playing out like it always has been. This time wasn't different. That was a whole the- there was a whole theory as to why this was different, because the institutions are here, because of the amount of Bitcoin that Michael Saylor was buying, because of the approval coming from the White House, the approval coming from the administration. But if you look at the facts, if you look at the data, four-year cycle is intact. But we're going to get into more of that in a little bit. But before we get to that, I did mention liquidations in the beginning of the show.