A Major WARNING Sign for Bitcoin from the Oldest Trading System

A Major WARNING Sign for Bitcoin from the Oldest Trading System

hi this is Le I hope you’re well in this
video I want to talk to you about the
chart of Bitcoin as you can see this is
the pattern we’re dealing with right now
the chart of Bitcoin so I want to take a
look at this chart and explain to you
what my good friend Manuel blly Trader
Manuel BL a dow the is saying about
Bitcoin and one key signal which if it
triggers could be very important for the
crypto all right guys join
me all right guys welcome back before we
dig into the chart of Bitcoin let me
just tell you briefly where I am I’m in
Central London by the tames river and in
waterl uh very soon I’m going to be
listening to 6 hours of German music
more specifically it’s 6 hours of German
classical music is the music of Richard
Vagner it’s the fourth part of his ring
cycle the Twilight of the Gods anyway it
should be quite interesting okay let’s
talk about Bitcoin now as you can see
here Bitcoin since March has been
consolidating in the sideways pattern as
you can see what could be potentially a
corrective ABC pattern but with the same
things happening on ethereum as well
it’s been consolidating here as well and
what could also be an ABC corrective
pattern anyway so far both Bitcoin and
ethereum are holding above the April
lows now recently I had a chat on email
with Trader and analyst Manuel BL the
Dow Theory who by the way I think is a
fantastic analyst and is someone whose
opinion about the markets I really
respect now what Manuel BL said to me
recently was this that if Bitcoin and
ethereum if both of them drop and close
below the April lows that could trigger
what’s called a dow Theory bearish
signal or a dow Theory sell signal now I
should say as I’m making this video
neither Bitcoin or ethereum have dropped
below the April lows So currently both
cryptos are holding above their
respective April lows for example the
April low on bitcoin is about 59k or 60k
however what manual Dow theory is saying
is that if if both cryptos both ethereum
and Bitcoin were to drop and close below
their respective April lows below the
lows they made in April that could
trigger what’s called a dow Theory
bearish signal now let me explain to you
essentially what that means very briefly
a dow Theory bearish signal is formed
when Bitcoin for example and ethereum
drop by at least 15 to 20% against the
dominant Trend dominant Trend being
upwards so because both markets have
dropped by at least 10 to 15% from Pak
to truff from March to April that is
what’s called a secondary reaction
against the dominant Trend then the Dow
Theory requires a bounce a bounce of at
least 10% on both charts on both
ethereum and Bitcoin and then the third
criteria the third part of the rules is
if both markets if both cryptos ethereum
and Bitcoin were to drop and close below
the lows they made before the bounce
which in this case would be the lows
they made the support they made in April
okay now again let me just repeat this
point neither chart neither Bitcoin nor
ethereum have dropped below the
respective April lows it’s only if if
both Bitcoin and ethereum were to drop
below the lows of April that could
trigger a dow Theory bearish signal or
Dow Theory sell signal according to the
rules of the Dow theory in the view of
manual blly the Dow theory.com and this
would mean that if such a thing happens
if both charts if both markets were to
drop below the April lows it could
significantly increase downside risk so
what that means is according to manual
BL if both Bitcoin and ethereum were to
drop below the April lows that means we
should be on alert because such a signal
if it occurs would be a warning sign
that both markets both ethereum and
Bitcoin could drop significantly lower
for example um if Bitcoin were to drop
below the April lows it could increase
momentum towards for example 55 to 50K
now let me say this I’m not saying this
is what’s going to happen it’s only if
if something like this were to happen if
both Bitcoin and ethereum were to drop
below the April lows all it means we
should be careful we should be very
cautious and on alert because it could
increase downside risk and momentum
towards lower levels again for example
Bitcoin could drop to the trend line
you’re seeing here or for example to 50K
or even lower levels so it’s really
important therefore for Bitcoin and
ethereum to protect and stay above the
April lows which again on bitcoin is
about 59k and on ethereum is about the
level you see right there about 2,800 or
so now let me give you my own views
about this very briefly personally I
think that Manuel BL is right we should
be careful if Bitcoin and ethereum were
to drop Bel the low it would be a
warning sign so he’s right about that my
own personal view is that as long as
Bitcoin stays above this trend line
you’re seeing here this white line you
see on the chart and as long as Bitcoin
stays above 50k key support I’m still
remaining cautiously bullish for this
year on bitcoin and etherum in other
words as I said before in the previous
video it’s only if Bitcoin were to drop
below 50k or below the trend line and
Below 50k then to me that would be a
sign of a top in Bitcoin and potentially
ethereum as well so so far as I’m making
this video that has not happened so I’m
still remaining bullish for Bitcoin and
ethereum even if we see a slightly lower
drop on bitcoin or ethereum for example
if Bitcoin were to drop down to the
trend line or for example to 56 or 55k
all I’m saying is as long as Bitcoin
stays above 50k and as long as it stays
above the trend line again I’m going to
give the Bulls the benefit of doubt in
other words I’m still remaining
cautiously bullish for the next several
months for example to the end of the
summer period or at least at the end of
this year so guys as I’m making this
video right now there is no warning sign
as yet Bitcoin or ethereum because both
of them are above the April lows but
again do remember what Manuel BL said
because if if both these charts if both
markets if both Bitcoin and ethereum
were to draw below the April lows that
would put us on alert that would be a
huge warning sign of potential downside
risk to lower levels for example to 55k
to 50K on bitcoin or even lower levels
but again as I said in this video even
if that happens as long as Bitcoin stays
above the trend line and as long as it
stays above 50k I still think we could
see higher levels in Bitcoin in the next
sever months potentially by the end of
the summer period to the higher targets
I mentioned before in my previous videos
but also as I mentioned previously if
Bitcoin were to drop below 50k if
Bitcoin were to break this trend line
and then fall below 50k I would have to
change my mind and become bearish but
I’m not bearish for now I still see this
pattern on bitcoin as a corrective
pattern same with ethereum I still think
this pattern is corrective I think both
cryptos Bitcoin and ethereum are forming
corrective patterns Corrections before
potentially we see higher levels in the
next several months again to the higher
targets that I mentioned previously all
right guys I’m gonna go now and see what
this uh German music the six hours of
vogner’s Music uh the ring cycle is
gonna be like I’ve never seen it before
being performed so it should be
interesting thank you very much indeed I
look forward to seeing the next video
update bye for now
[Music]

A major warning sign for bitcoin from the oldest trading system. Bitcoin has been consolidating in a sideways pattern, what could likely be a corrective ABC pattern. However, recently trader and analyst Manuel Bay of the dow theory informed us of a potential warning sign on both bitcoin and ethereum, IF it happens. We explain in this video what this signal is in relation to the cryptos, bitcoin and ethereum. We also mention what could happen IF the dow theory signal triggers on BTC and ETH. Also, we cover what is more likely in the longer term based on the probabilities. #bitcoin #ethereum #alessiorastani

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