Bitcoin Halving Explained and Crypto Markets Check In, Stock Market Bounce | Maxsi Market Review
[Music]
all right hey welcome welcome thanks for
joining us for another week of market
review here at Maxi I’m Max I’m joined
with Sid as always and we’re going to
dive straight in this week uh it is
Bitcoin halfing week so this on the 20th
this week uh April 20th the Bitcoin
block reward was cut in half this is an
event that happens once every four years
and uh I mean I’ve been around for this
is like my fourth third having now uh
but it still raises a lot of uh
questions and a lot of confusion in the
community so we thought we’d start by uh
clarifying A little bit what happened
what does it mean and and what uh is the
implication moving forward from this so
uh to to dive straight into that well to
understand what the Bitcoin halfing is
we kind of have to understand how
Bitcoins come into circulation and so
Bitcoin uh is is a network and the
network is maintained by know people
running their computers and contributing
this computing power to you know
Safeguard this network on a global scale
and in exchange for that computing power
every time a block is added to the
blockchain uh there is a minting event
triggered where new Bitcoins are created
out of out of the network out of nothing
effectively and given to the the miners
or the computing power that generated
that block from the very start of
Bitcoin
this has been a fixed rate so when
Bitcoin first started back in 2008 I
believe is when the Bitcoin Network
first spun up and started running every
10 minutes when the new block was found
mathematically on average so obviously
you know a little give or take there but
every block every every mathematically
averaged 10 minutes 50 new Bitcoins were
created out of the protocol out of thin
air and distributed to the people Supply
uh supplying the computer power to the
network in that way 10 minutes at a time
one block at a time every single Bitcoin
was created and distributed to the
participants of this network so it’s a
very much planned and a very fair and
participat and expected distribution
model for how these coins are created
and then distributed anybody can
participate by simply adding their
computer to the network and adding
processing power to this uh
activity and anybody can you know get
lucky and find a block if they if they
uh you know beat the mathematical
average so every from the start every 10
minutes new Bitcoins come into existence
50 at a time every four years that 50
got cut in half so you know after after
that first four years in 2011 I believe
we had um yeah we had the uh block war
cut down to 25 and then you know again
and again and now with this most recent
block reward happing we are now down to
just just north of
3125 yeah 3.125 so that’s 3.125 new
Bitcoins are created out of this mining
Pro process every 10 minutes uh if we
now look at the total amount of Bitcoins
in circulation
2.125 Bitcoins per 10 minutes now shows
us that the Bitcoin inflation rate so
the rate of new Bitcoins being created
and entering the circulating supply of
existing Bitcoins is now below
2% uh apy so two less than 2% of
existing circulating Bitcoin are being
generated each year now uh four years
from now it’s going to get cut again
down to like 1 point you know you know
less and less but basically um this week
on the 20th we had the block halfing
event uh since the 20th of April the
amount of new Bitcoins being generated
by the network that you know the mining
of Bitcoins by the network of
participants is now reduced by 50% and
will never be higher than it currently
is never be more than 3.125 every 10
minutes and because of that Bitcoin has
kind of crossed a threshold here where
its effective inflation rate is now
lower than basically every other asset
out every other cash asset out there so
you know under 2% that’s that’s cheaper
than you know Fiat currencies government
dollars that’s cheaper than basically
anything so this was a big time planned
event everyone knew it was coming since
the very beginning of Bitcoin so
everyone has been kind of excited about
it I’ve definitely seen some confusion
people thinking that you know uh it it
you know means the you know the supply
gets cut in half or something happens to
like coins that you currently hold none
of that uh will affect you if you’re not
participating in actively mining
bitcoins you won’t really no a
difference the only difference is that
the miners are now getting less and what
that means is they have less ability to
sell new Bitcoins and so the the idea
here is that you know the reduced Supply
with a consistent demand so as long as
the demand for Bitcoin doesn’t drop more
than the you know Supply then the price
should increase and that’s why a lot of
models out there from like these big
analyst firms are anticipating a a run
up in bitcoin price in the coming years
uh and that run is
basically uh a product of this Supply
demand model where now the supply is
being reduced while the demand is
potentially actually increasing as
institutional players are trying to you
know take market share of the ETF space
really exciting yeah so so I guess we
look at it from a so from a market
perspective then I mean in the past to
like after the halfing yeah uh is when
you see sort of like the the height of
the bull market yeah after the halfing
historically has been like The
Millionaire Maker bull runs uh that we
see so we have had a pretty aggressive
Bull Run already it looks fantastic and
if you’ve been trading with our uh Maxi
trading buddy indicator like what you
have uh on on your chart there you’ve
probably done extremely well since we uh
had our bull signal there we flipped to
green and we bought pretty close to the
bottom of this bare Market just south of
25 thou uh
$2500 per Bitcoin
so yeah this is like uh pretty good
around like 20,000 so like 2,000 yeah 20
20 to 24 or something you know it seems
like a decent sized range it’s like a
20% range but man it makes you look like
a genius today so yeah like 24 whatever
yeah so we bought spot like our
indicator print signal bow and then it’s
just been on a tear like the whole
Market has been on an uptrend this we
got Bitcoin on the left side ethereum on
the right side of the chart and what’s
interesting is that the last few weeks
uh the stock RSI which is another
indicator I’d like to use it looked kind
of top so it had to it looked like it
was going to cool down which it did and
we saw this drop and then last
week uh it kind
of uh so so what’s also interesting is
that I noticed that uh
it’s in a potential
Parabola and if you see the price Wicked
right right to the tget like right to
the Target and like it’s it’s held there
so my guess is that and ethereum has
done something similar too and ethereum
has
this these two candles yeah tweezer
bottom where like basically both the
wigs are close to equal so that’s and
this is kind of like a falling wedge
with the queer bottom so yeah and that
like long long DOI is also kind of
indicates the change of a Direction so
this is looking
bullish it’s looking bullish so or at
least like the potential bottom so like
if this this might have been a good time
to to add to our bags which I mean we
did yeah we we did we so we’ll see got a
little bit if yeah this I mean it worked
out great so far because we’re already
up and but but the interesting thing is
that the parabola like you have these
different bases so this seems to be all
the pullback was doing was creating a an
additional base before the next leg up
so for it for us to confirm bottom and
reversal we need to see a higher weekly
candle so that will confirm that that
we’re breaking out of this like downward
Trend so that’s so if we if we start
closing above 74 75,000 for Bitcoin then
that would indicate not only like you
know a reversal on the chop there that’s
the that basically indicates a
successful base for the par Parabola
breakout which if we do get that then we
can run pretty
good yeah so I think like
71.5k is for Bitcoin and I think
ethereum like would be like 3.8k like
you know once it basically makes a new
higher weekly candle then that’s when
you get a confirmation but what it’s
already looking like if it were to stay
on this Parabola then like I think this
is all and you’re noticing too that the
srsi there is is approaching the
oversold side of its uh of its range so
we definitely want to see some more buy
pressure coming back to cool off or heat
up I guess again the SR side get that
back off the floor back into the like
you know nice blue range there hopefully
push it all the way to the overbought
and give us a big pump but ites it is
looking very very like bullish in the
sense that like the recent chop here in
the market does not seem to have broken
the model of the parabola just yet and
it does give us uh it gives us the sense
that we’re building a base for the next
takeoff and that next takeoff should be
uh like either this the blowoff top for
this Parabola which you know which takes
us pretty high up can you zoom out on
that chart where do we where do we land
on this one yeah so like um I didn’t
want to I I was waiting for the the for
us to leave the base to like then share
the Target because like we need a
confirmation but because the wider the
base goes the higher the target becomes
too is what you can get exactly so
so from where we are right now like uh I
think like you know like BTC I think
like maybe that’s a little extended but
like you know at least for ethereum like
around 10K I think here I think like I
think 10K would be more like 10K is
definitely possible for like ethereum
and for Bitcoin it’s actually like about
aund
$112,000 Dam so that would be around 112
113 like around there so we’re that
would be the targets yeah we’ll have to
keep an eye to see that this Parabola
stays intact and then like you said what
we really want to see is that Weekly
close higher so that we get the
confirmation of the breakout exactly so
like once once we have that then the
then the targets can be drawn more
exactly and then uh so that’s the crypto
Market we had a big development we had a
nice you know we had our uh we had our
halfing event happen and the sell the
news kind of event is chilling out and
then here’s the stock market so last
time we looked at it we were looking at
it being a bit on the over uh bought
side it had it had been you know kind of
flatlining you can see on the SR side
there and in the past few weeks we got
that to cool off which is exactly what
we expected so yeah and pull back right
to the Target too the that you had there
four 495 like yeah literally to the T
right to the te and like of course our
indicator like it basically signal a
flip and Trend right at the top so see
you can see went bear with the red band
and then price just started dropping set
on The Daily and then the weekly you can
see we’re actually staying above the
band so the weekly the longer term Trend
still not like flipping super bearish
exactly and actually you know cooling
off and finding support kind of on our
on our strength band which is where the
support should be in uptrend so this is
still looking bullish which is which we
uh which we also shared I think like
last a few weeks ago last week that
price is trying to Sr flip the
monthly basically so kind of like the
alltime high price from the previous
Bull Run is like the is the monthly like
support resistance Target now so I guess
it’s the monthly resistance we’ve broken
through it already but now what we
really need is for it to fall back to it
and bounce to move up again that way
confirming that it’s no longer
resistance but it has in fact become
support and that’s that’s what we want
to see here and it does start to look
like that like especially looking at the
the weekly chart uh the srsi is looking
more over uh
oversold the chart is still green still
north of the of the band uh and staying
above our our support lines so yeah so
for it to continue in a bullish trend
price has to try to stay above the our
indicator strength band yeah like it can
briefly dip and then go back up yeah
fine but like it shouldn’t it shouldn’t
uh start making lower highs
and lows a big way that we like to uh
track the indicator is you see how it
prints Bull and Bear right on the chart
but it also has that uh the band there
that changes from red to Green so if we
do get a bull print we want to see the
bull print along side with a green band
so you can see yeah like for example at
the very bottom of this QQQ chart there
or or the Spy you can see uh we had that
bull print during a green band so it was
like oh this bull print is bullish
whereas after that you see we got that
bear print that looked like it would
have been a fake out we would have
gotten we would gotten like our our
milkshake drink and what happened you
know what happened there is uh we got
the bear print which which is bearish uh
but we didn’t get the color flip on the
band and that color flip is what
confirms our our indicator’s signaling
so we were able to ignore that bare flip
entirely and not get you know a bear
trapped because we want you know to see
a bear flip with an indicator changing
color uh and dropping it so you can see
like the QQQ even though we have uh now
in the last two weeks or so a big like
red candle you can see we’re still on
the green side of that and all of this
price activity although it was pretty
dramatic like that’s a long candle
especially for the QQQ you know this is
that’s a volatile week I think uh Nvidia
lost like 200 billion dollars off its
market cap or something yeah they didn’t
do well with earnings and like Tech
earnings we have a bunch of tech
earnings this week
too yeah but like it it already looked
like it was in a downtrend so despite of
Nvidia or not so like and of course it
didn’t help it like because media makes
up the Q and even when we see such a big
candle in one day like that know it can
shake us out and be like very scary but
so that’s another thing that I really
love about the indicator where it’s like
okay yeah it’s big but this is still
like very clearly part of a bullish
Trend like we have’t flip we’re not
below the band like this is you know
while the world is on fire this is fine
like the little dog picture who’s
drinking his oh yeah the meme yeah yeah
exactly well you know the kitchen’s on
fire but it’s it’s fine yeah so like so
like if you look at the so we were
expecting a retest yeah pump to happen
and that’s what’s happening because the
stock RSI seems over yeah very over
oversold so you know that should like it
should go back up so but what price is
going to try to do this is a daily chart
is that it’s going to try to retest the
strength band yeah and then you know
which is where resistance is also so
like if clear this yeah go on yeah if if
we clear this and then then we can uh we
can say that okay we’re going to start
making new highs after that right if not
we we this and then like we then we
retest the bottom again exactly so yeah
and and then like like you see where
where Sid has those um support
resistance line drawn out uh it’s right
now it’s a bit below where the indicator
is but obviously it’s not going to jump
up that straight to there in one day or
very quickly so over the course of like
a few days or weeks the band is going to
come down and it’ll likely line yeah I
was say it’s going to line up very close
to that like 512 uh 513 kind of range on
the Spy or the 437 for the QQQ there so
yeah that’s that’s kind of what we’re
watching for here is uh you know it’s
look it’s looking a little bit more
bullish now uh which is a bit of a week
this week for exactly a little bit of a
green week it doesn’t mean necessarily
green week doesn’t also mean that we’re
going to go into like a green month or
something so like like Sid was saying we
want to see us you know retest that uh
resistance and then break through it to
flip it and then get our Sr flip
confirming the breakout at which point
of course new all-time Highs are back on
uh on the table for the stock market and
then of course in crypto we did get to
take a look uh quickly at the chart
turning more bullish again the parabola
that has been in play for a little while
but that we just shared uh to kind of
keep an eye on here and hopefully give
us a breakout into those astronomical
all-time highs uh you know six figures
for Bitcoin uh five figures uh for eth
so we’ll hopefully break those
thresholds uh fingers crossed on that
big time and then we also had our
halfing event which is the block reward
for Bitcoin was reduced 50% moving
forward and it’s now below 2% in
inflation uh for the Bitcoin total
Supply out there uh that is something
that everybody had been talking about
the news was like reporting on but it is
also something that isn’t necessarily
super intuitive easy to understand so we
wanted to cover maybe the implication of
that which I think the most
straightforward understandable way to uh
digest that information is the supply of
Bitcoin is being reduced moving forward
and the demand is not necessarily being
reduced so the idea on a general like
101 economics understanding is lower
Supply constant demand equals higher
value price yeah um but we’ll obviously
will have to see it’s clearly not a 101
you know super simple uh price Dynamic
kind of equation there’s a lot going on
in these markets but but we we’ll trade
the chart and right now it looks like it
might have bottomed and we starting the
next it’s looking good and we were able
to jump in on nice little like entry
Target there when uh when the market did
sell off but stayed within our uh weekly
kind of price trajectory of course uh
volatility was obviously expected on the
lead to such a big unknown event such as
the halfing uh I would also throw in um
let’s continue to expect volatility post
halfing and also given the situation uh
you know in in the world right now the
uncertainty out there and the um the
unrest in you know many parts of the
world that obviously uh we’re not you
know following the news directly uh as
far as our trading motivations go but
we’re aware of the news and aware of um
you know as Traders and as as people
participating in these markets we’re
going to be aware that volatility can be
more expected when these when these uh
tulous events are unfolding and uh while
that’s happening I hope everybody stays
safe and uh is you know is able to uh
participate in this stuff uh you know
safely and and not kind of get shaken
out by just some bad news or just some
you know uh crazy volatility because it
is expected
[Music]
We look at what the Bitcoin halving is and check in with the crypto markets. We also take a look at the stock market as we expect a bounce this week.
Get access to our Maxsi Trading Buddy indicator that calls tops and bottoms for any asset (stocks, crypto, ETF, forex) : https://www.maxsi.io
Follow us on:
YouTube: https://www.youtube.com/@maxsi_official
Instagram: https://www.instagram.com/maxsi_official
Facebook: https://www.facebook.com/maxsiofficial
Twitter: https://twitter.com/maxsi_official
TikTok: https://www.tiktok.com/@maxsi.official
Disclaimer: All of the information contained in this video is for entertainment and educational purposes only and is not to be construed as investment or trading advice. Any reliance on the material in this video is at your own risk. Opinions and projections included in this video may prove to be inaccurate, and are subject to change without notice. We may share links to articles and information which is interesting to us. It is in no way an endorsement by us or by anyone associated with us. Users should not treat these materials as advice regarding legal, tax, or investment matters. No recommendations are made to invest in Digital Assets nor any other investments. Past performance is no guarantee of future results. Trading is extremely risky. You could lose a lot or even all of your money, Digital Assets by trading.
#foryou #stockmarket #bitcoin #technicalanalysis #stocks #btc #crypto #cryptocurrency #ethereum #trading #tradingindicators #finance #investing #forex #viral #Maxsi